SOURCE: Mammoth Energy Group, Inc.

September 25, 2007 18:20 ET

Mammoth Energy Group Announces Re-Organization and Commencement of New Project

WINSTON-SALEM, NC--(Marketwire - September 25, 2007) - Mammoth Energy Group, Inc. (PINKSHEETS: MMTE) announced today that it has completed its re-organization by the sale of its prior assets to the original owners leaving the company free of the majority of the debt previously incurred to move forward on new projects.

Mammoth, through its newly created wholly owned subsidiary, United Gas OK, Inc., has obtained the drilling rights to a gas field in an area of Oklahoma with producing gas wells and known production. The field would allow up to 60 wells to be drilled and management believes that the shallow wells will provide a consistent and reliable cash flow for the company for the next 5-10 years when completed.

"We are very pleased with how this project is coming along," said Joe Overcash, Mammoth's Chief Executive Officer. "We believe that this project will become our foundation for future success. This is a limestone formation which provides high probability of natural gas and occasionally some oil. These wells produce at depths around 800 feet and are very economical to drill. We plan to drill 3 wells at a time which will allow the best cost/well. As such, it is our goal to quickly expand our production base in Noble and Kay County by having about 30 or more wells on-line by year end." United acquired the rights to the property in June of 2007.

About Mammoth Energy Group, Inc.

Mammoth, through its wholly owned subsidiary, United Gas OK, Inc., is focused on developing shallow gas projects in northeastern Oklahoma due to the low risk, blanket characteristics in the area that make it possible to drill and produce a well nearly every time. It is currently focused on developing its Noble and Kay Counties of Oklahoma which is approximately 1,400 acres.

More information is available at the company's website at

Cautionary note This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

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