Hemi Energy Group Announces New Kansas Drilling Developments
Wednesday June 11, 9:40 am ET

FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink Sheets: HMGP - News): The evaluation of the well logs and drill cutting samples from the new well on the Weseloh lease in Woodson County, Kansas has shown excellent oil shows from multiple pay zones. This virgin lease's new oil well clearly has the important natural gas in water solution drive. This will be a very good producing well, based on the opinions and experience of industry professionals, after it is fraced and other completion techniques are finalized by next week. This is our first drilled new well on a virgin lease and therefore will have a much longer lasting production and at a higher rate than wells that are drilled on leases with mature wells in southeast Kansas. Our new oil well is along the Cherry Creek Trend and is in close proximity to several excellent producing new oil leases of other oil companies that are also drilling and developing along the oil trend.

These two virgin leases, the Weseloh and Driskell, have all necessary supplies in place. The total acreage of these two leases is comprised of approximately two square miles in the Cherry Creek Trend, an area that is only recently being developed and producing oil. Hemi Energy's contract driller, McPherson Drilling LLC, expects to move to the second lease next week. The Driskell lease is also in the Cherry Creek Trend, which we believe is an extension of blanket formations, in Woodson County, Kansas. We plan to complete the drilling and cementing in the next two weeks of the new well on the Driskell lease.

Hemi's new oil well on the Weseloh lease has also identified five coal bed layers. All of these coal bed layers lie on top of the Bourbon Arch, which is a geological feature approximately forty miles long. This new well's coal bed layers are very similar to coal bed layers that are found approximately five miles away in our five mature leases with oil production. Therefore, a logical geological conclusion is beginning to be confirmed that the coal beds and economically produceable methane gas exist between our two groups of leases in southeast Kansas. It is well documented in southeast Kansas that blanket geological formations are common, especially in CBM pay zones.

Neither Hemi nor Hemi's management have sold any shares in 2008 to the stock market and no market makers have been selling on the behalf of Hemi. Therefore, it continues to be Hemi's opinion that after hours postings are not shares being sold in volume but are predominately reporting of transactions of sales made during the day. Hemi continues to be cash flow positive and has more than sufficient funds to complete the three oil wells being developed in Kansas, and therefore has no need to sell shares to fund normal daily operations. Hemi's artificially low market cap is substantially below book value based on conservative oil and gas industry standards, especially when the expected oil production from the three new oil wells in Kansas are factored in near term.

Hemi Energy Group is an independent crude oil and natural gas producer employing a unique business model capitalizing on technological advances to exploit mature fields with millions of barrels of proven oil remaining in the ground. Using attractive lease/royalty packages Hemi has secured, in its history tens of thousands of acres of productive domestic projects. The company's forward-thinking strategy has placed it in an enviable position at a time when prices and global demand for oil continue to rise.

"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.