Hemi Energy Drilling Updates in Kansas
Monday June 2, 9:45 am ET

FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink Sheets: HMGP - News) Hemi Energy's contract driller, McPherson Drilling LLC, has moved on to the first drill site on the Weseloh lease in the the Cherry Creek Trend, which is a newly discovered oil and gas producing area in Woodson County, Kansas. The delays last week were a result of heavy rains over the holiday weekend which required us to wait to begin the first drill of our two drills on these leases. We will complete the drilling and cementing this week of one or both wells. We own 100% working interest and 80% Net Royalty of these these two virgin leases, as for all leases we own. We have all necessary supplies in place, therefore we will do back-to-back drills on the Weseloh and Driskell leases. The total acreage of these two leases is greater than 2 square miles in the Cherry Creek Trend and is in close proximity to several new excellent producing oil wells of other companies in this trend too.

The area of the Collins lease well received additional heavy rain over the holiday weekend, further delaying completion of the fracting techniques. The barrel count per day results from this oil well will not be released till next week because of proprietary consideration in regard to additional potential leasing.

The insurance claim process is continuing to move ahead for the major flood damage in 2007 to our five mature producing oil leases in Woodson County, Kansas. This claim is more than $1.2 million, and additional information has been gathered this quarter by the insurance carrier. Hemi has already funded all repairs and upgrades, therefore all monies funded from this claim will be available for future development.

Building on decades of experience in enhanced oil recovery, Hemi has successfully amassed a substantial and attractive portfolio of these high quality domestic properties. By streamlining operations through cutting-edge technologies, Hemi has the ability to operate more effectively and efficiently than larger oil companies.

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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.