GENERAL

Hemi Energy Group Inc. is an oil & gas exploration and production Company, based in Fort Worth, Texas. Our oil and gas exploration and production (E&P) activities are focused on properties in the U.S., principally in South Eastern Kansas, Texas, New Mexico, North Dakota and Wyoming. Our primary focus is to achieve growth through the acquisition of existing, mature oil and natural gas fields. We believe the portfolio of oil and natural gas properties that we have acquired thus far provide abundant opportunities to apply developmental drilling, waterflooding and advanced EOR technology. The company’s initial focus and business model will focus upon the expertise of ownership and management along with Hemi Energy Group, Inc.’s team of energy and financial consultants to utilize their collective abilities to source, evaluate, and make acquisition of distressed and undervalued lease hold interest(s) of producing/non-producing oil and gas properties. Hemi Energy Group, Inc.’s team of professionals have extensive energy and corporate experience, which allows the company's ability to exploit and enhance the valuations of O&G prospects and/or E&P companies not suitable for large independent or publicly traded integrated companies to own and operate profitably. Industry data suggests that there is an excess of $1,000,000,000. of O&G acquisitions available and currently on the books of large, independent and integrated energy companies in Texas, Oklahoma, Kansas and New Mexico, respectively, which are available and appropriate prospects/acquisitions for Hemi Energy Group, Inc. due to the company’s lean operations and “lower risk business model”.

Hemi Energy Group Inc. was originally organized under the laws of the State of Oklahoma on April 14, 2001 as Hemi Energy Group, Inc. In 2003 Hemi moved its corporate charter to Texas, to become a Texas Company.

PLAN OF OPERATION

Overall Strategy
We are a growing independent oil and natural gas company that intends to actively pursue enhanced oil recovery techniques (EOR) and developmental drilling to increase production and reserves at our existing and future properties. Our primary focus is crude oil and our target acquisitions are onshore U.S. properties. Our focus on domestic, mature oil fields eliminates exploration risks and the uncertainties of international sources. We use waterflooding and EOR technology, such as surfactant-polymer technology.

We believe significant acquisition opportunities will continue to exist primarily because the major energy companies and large independents continue to focus their attention and resources toward the discovery and development of large fields. During the past several years, the major companies have been divesting themselves of their mature oilfields. Also, the recent economics of crude oil and natural gas markets have improved as prices have risen substantially. These conditions provide ample opportunities for smaller independent companies to acquire and exploit mature U.S. fields. We expect that there will be increased competition for such properties in the future.

We will continue to selectively target potential acquisition candidates in a disciplined manner, which involves being financially prudent and acquiring assets that meet our engineering/operational standards. By adhering to this disciplined approach, we expect to continue to find attractive economic acquisition and development opportunities.

Our competitive advantage is our in-house expertise, extensive library of historical data and relatively low internal overhead. We employ independent engineers and geologists to aid in evaluating the economic merits of drilling plans and potential acquisitions. We believe that the incremental cost of hiring independent engineering firms justifies the expense since they provide a check and balance on our acquisition and development plans. Furthermore, employing third party experts on a case-by-case basis enables us to better manage our operating expenses and adhere to our commitment to keep fixed costs low.

Mission Statement
Hemi Energy Group, Inc. is committed to managing the current and future development and production of strategic oil and gas properties as well as the acquisition of exploration and production (E&P) management company(s). Hemi Energy Group, Inc. remains dedicated to building and maintaining an organization that values integrity and a commitment to providing value added services to our clients, industry partners and public shareholders.

Corporate Philosophy
Hemi Energy Group, Inc. (OTC – HMGP) and subsidiaries’ corporate philosophy is to represent a benchmark of excellence and the “model” for a developmental stage/emerging growth and diversified oil and gas holding company. Hemi Energy Group, Inc. executes a “lower risk business model” and a fundamental commitment to maximizing shareholder values by utilizing traditional and advanced technologies to exploit and enhance the value of distressed and undervalued oil and gas producing properties and E&P companies. Hemi Energy Group, Inc. believes that domestic sources of energy both traditional and non-traditional (i.e. alternative energy sources) will be a critical component and driving force in the future growth and stabilization of the US domestic energy supply. Hemi Energy Group, Inc. intends to expand and fulfill the company’s commitment to providing the U.S. with domestically produced energy resources.

Hemi Energy Group, Inc. – Corporate Headquarters

Stock Exchange Building in the Fort Worth Stockyards