Kansas Coal Bed Methane Gas Update
Wednesday May 14, 9:43 am ET

FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink sheets: HMGP - News) has identified five coal bed layers under the five mature leases with oil production in Woodson County, Kansas. The five coal bed pay zones, starting from the deepest to the shallowest are the Riverton, which sets on top of the Mississippi formation, the Weir-Pittsburg, Bevier, Mulky and Summit. The Bourbon Arch, which is a geological feature, is approximately forty miles long and all of these coal beds lie on top of the Bourbon Arch. There are more than two billion cubic feet of coal bed layers and these results only include some of the layers of coal beds. Testing is still being completed at the lab of the coring and cutting samples of these layers. When the analysis is completed at the laboratory, the information can be used by the geologist to update the reserve report to include the CBM gas. The geologist will use this information and other detailed geological information to determine the amount of CBM gas. Hemi's lease acreage of the five mature oil leases is approximately three square miles. The company also has additional leases that are adjacent or contiguous which have several times the total acreage of these five mature leases. This area of southeast Kansas is well documented as having blanket geological formations especially in CBM pay zones. Coal bed methane gas, when properly produced in our area of Kansas, has a very long commercial life expectancy, many times ten years or more years, because methane coal beds regenerate the methane gas. Management's opinion and experience is that there is significantly more total cubic feet of coal beds and therefore there will be a large volume of CBM gas when the updated reserves report about oil and gas is released.

Hemi President Keith A. Anderson issued this statement: "The high crude oil and gasoline prices has impacted each and every American, as the world seeks alternative sources of energy and CBM gas is a renewable energy resource. With that thought in mind, Hemi has been drilling and developing wells, we have been employing the highest levels of the industry standards for drilling and completion techniques which will allow these wells to continue producing decades into the future. Due to the current economic climate we have focused on crude oil production, near term. While choosing to leave the CBM gas behind pipe as proved undeveloped reserves for future use. Converting the current oil wells into CBM gas wells or comingled CBM gas/Crude oil production wells will be a relatively simple, straight forward, low cost conversion of these bore holes. Ongoing reports from Kansas Geological Society have further confirmed the thickness of the coals in the Bourbon Arch and quality of gas which may be obtained. I feel the preliminary CBM gas reserves being quoted in this press release has the potential of being increased exponentially in the final completed reserve report, we recently commissioned."

A large petroleum company, with home offices in Houston, Texas, is doing extensive drilling and development of their coal bed methane gas on leases with similar types of CBM pay zones located ten to twenty miles south from our areas of interest. A company like this, with very large lease holdings, obviously has done extensive due diligence before committing millions of dollars to develop the CBM gas in their leases in southeast Kansas. Therefore, it is a reasonable projection that development of very similar types of blanket coal bed formations will also be as commercially viable for Hemi. Hemi has knowledge about other blanket CBM formations that are within a few miles of our mature leases and also adjacent to our leases in the Cherry Creek Trend that is our next leases to be drilled.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.