Hemi Energy Group, Inc. New Well Production in Kansas
Monday November 12, 9:53 am ET

FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink Sheets:HMGP - News): The Tebbens-Hemi-2 oil well flushed in at 43 bbls per day after the fracing process was completed on our lease in Woodson County, KS. We are baselining this new oil well to maximize efficient production. The water injection well is allowing us to not only dispose of the water from new wells but also to continue to efficiently de-water the leases with mature re-worked wells in Woodson County, KS. Geological information obtained from cutting samples and open hole logging of this new well and the water injection well will be used in proving up additional BOE reserves. These wells allowed us to discover several coal methane beds (CBM) that are "behind pipe" and other deeper oil pay zones, which are generally blanket geological formations in this area of Kansas. These additional oil and gas reserves will be added to the independent reserve report values as they are drilled and proved up.

Hemi is acquiring additional leases in three states that are either adjoining or in close proximity to leases which have mature or producing oil wells. Hemi is evaluating the best use of its resources in order to determine in which state they will drill the next new oil well this winter. Management believes new wells to be drilled on these new leases will yield bbls per day significantly higher than our last new well in Kansas. We continue to implement our business plan and are allocating resources to begin expanding drilling to other states in addition to Kansas.

Management knows that the total value of the oil and gas reserves on our leases in Kansas, BOE values on leases in four other states, an extensive library of geological information and management experience confirms that the undervalued stock market price is irrational considering the values and fundamentals of all its assets. Management and groups assisting Hemi are still addressing issues involving the artificially low market cap.

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 of 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.

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.

"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.