SOURCE: Native American Energy Group, Inc.

Native American Energy Group, Inc.

September 26, 2011 09:51 ET

Native American Energy Group Issues Formal Update on Five-Well Workover Program in Montana

Test Production Commences on Cox 7-1 and Workover Underway at Sandvick 1-11

FOREST HILLS, NY--(Marketwire - Sep 26, 2011) - Native American Energy Group, Inc. (OTCQB: NAGP) (PINKSHEETS: NAGP), an independent energy resource development and management company, today announced that it has completed the workover of the Cox 7-1 well located in the Williston Basin in Montana, where NAGP operates and holds a 100% working interest in four leases (five wells) situated on or around the Fort Peck Indian Reservation.

Historically producing sweet crude from the shallow Mississippian Charles Formation, Cox 7-1 was first drilled in 1981 by Century Oil & Gas Corporation, but was later shut-in primarily due to a build-up of naturally occurring paraffin which clogged perforations in the original well bore. Through the engagement of highly advanced oil recovery technology applied to the well in the workover process which began last month, NAGP has since completed the workover and has progressed to the test production phase at this site. Upon installation of a new Heater Treater (a piece of heavy equipment used in oil production to separate oil from water), Cox 7-1 should transition from test production to full production within the next four weeks. Based on early test production results, Cox is expected to flow +/- 50 barrels of 41.8 Degree API Gravity Oil per day.

Since completing the first well of its planned five-well workover project, NAGP has commenced the workover of its second well, Sandvick 1-11, located on 320 acres in Valley County, Montana on the Fort Peck Reservation. In tandem with the workover of the Sandvick well, NAGP has also proceeded with prepping its third well site, Wright 5-35, located on NAGP's lease holdings in McCone County just south of the reservation. Notwithstanding any unexpected delays with the workover completions at Sandvick and Wright, NAGP will proceed with the workovers of Beery 2-24 and Beery 22-24 -- both of which are also located in McCone County.

Joseph D'Arrigo, Chairman, President and CEO of NAGP, stated, "Completion of Cox 7-1 marked a critical milestone for Native American Energy Group -- one that we have been diligently working towards for the past several years. This landmark achievement will transition our company from development stage to production. Moreover, it empowers us to advance our mission of actively supporting economic development for local Native American tribes through new job creation and NAGP-sponsored work training programs."

The Company anticipates completing its five-well workover program prior to the end of 2011.

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 Williston Basin, Montana; development of coal-bed methane natural gas ("CBM") in the Cook Inlet Basin in Alaska; and 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 www.nativeamericanenergy.com.

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, its directors, or its officers 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 from time to time with the SEC including our 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.

Contact Information

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