SOURCE: Native American Energy Group

Native American Energy Group

October 27, 2011 09:42 ET

Native American Energy Group Initiates Workover on Wright 5-35 Well in McCone County, Montana

First Phase of Workovers Completed and Well Site Winterization Underway at Cox 7-1 and Sandvick 1-11 Located in the Williston Basin

FOREST HILLS, NY--(Marketwire - Oct 27, 2011) - Native American Energy Group, Inc. (OTCQB: NAGP) (PINKSHEETS: NAGP), an independent energy resource development and management company, today issued a formal update relating to its five-well workover program currently underway on and near the Fort Peck Reservation in the Williston Basin in Northeastern Montana.

Cox 7-1 Well
In mid-October, NAGP installed a new Heater Treater on the Cox 7-1 well, located on the Company's 80-acre leasehold in Roosevelt County, Montana. Having confirmed that the new equipment is operating properly, the Company has now begun the next phase of the workover, in which the well produces a mixture of the water used down hole in the workover operations and oil from the producing formation. The Company expects that this phase of the workover will take about two weeks, at which time commercial oil production will be started. The Company is also in the process of preparing the well site for winter weather conditions. As previously announced, the Cox 7-1 well is expected to flow initially at approximately 50 barrels of oil per day once commercial production begins.

Sandvick 1-11 Well
NAGP has also completed the first phase of the workover of its Sandvick 1-11 well, located on 320 acres in Valley County, Montana on the Fort Peck Reservation. The Company is now engaged in testing and adjusting, as necessary, the surface equipment, such as the Heater Treater, pump jack, et al., as well as winterizing the site. The Sandvick was originally drilled in 1983 by Clayton W. Williams, Jr. and was completed at 99 barrels of 38 Degree API Gravity Oil per day; however the average historical production of the well through the 1980s and 1990s declined to approximately 20 barrels per day, due largely to mud blockages down hole. During the initial phase of the workover, NAGP engaged enhanced oil recovery technology and succeeded in overcoming mud filtration issues which hindered past production. Based on its current results, the Company expects Sandvick to yield approximately 60 barrels of oil per day upon moving to commercial production next month.

Wright 5-35 Well
Last week, NAGP moved its rig from the Sandvick well site to the Wright 5-35 well, located on its 160-acre lease in McCone County, Montana; and has initiated the workover. The Wright well was first drilled in 1960 by State Oil and Cities Service Oil Company. Original completion of the well resulted in 36 barrels of oil per day, a production level which persisted for most of its productive life through 1985 when it was shut down for two years. The well was brought back into production in 1987 and continued to produce oil until 1995 when it was again shut down. At that point in time, oil production had declined to approximately six barrels of oil per day due to a build-up of paraffin that plugged off perforations in the well bore. Following its acquisition of the lease in 2006, NAGP serviced the well and applied a paraffin surfactant to clean the perforations, casing and tubing. Over the two-day well testing period, Wright produced over 400 barrels of 36 Degree API Gravity Oil.

The current rework of the Wright well and the related enhanced oil recovery process underway at the site are expected to be completed within the next several weeks. Anticipated daily oil production will be announced at that time.

Notwithstanding any unexpected delays with the workover completion at Wright, NAGP will then proceed with the workovers of Beery 2-24 and Beery 22-24 - both of which are located on the Company's 320 acre leasehold in McCone County.

About Native American Energy Group, Inc.
Native American Energy Group, Inc. is a New York-based, energy resource development and management company with three principal projects: development and management of its oil & gas interests in the eastern section of the Williston Basin in Montana; development of coal-bed methane natural gas ("CBM") in the Cook Inlet Basin in Alaska; and planned implementation of vertical-axis wind turbine power generation technology for the production of clean, cost-efficient green energy throughout the USA, including Alaska and on all U.S. Native American tribal lands. For more information, please visit

Forward-Looking Statements
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission ("SEC"). Such statements include those concerning NAGP's strategic plans, intentions, beliefs and current expectations of the Company and its management with respect to the future business activities and operating performance of the Company. Such statements involve known and unknown risks and uncertainties, whether expressed or implied by such forward-looking statements, and actual results may be materially different from those projected. Readers should carefully review all disclosures filed by the Company with the SEC including its Form 10-K for the year ended December 31, 2010, and subsequent filings for a further discussion of these risks, and must not place undue reliance on forward-looking statements which speak only as of today's date.

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