SOURCE: The Stallion Group

February 23, 2007 16:01 ET

Stallion Announces First Successful Well in Mississippi

JACKSON, MS -- (MARKET WIRE) -- February 23, 2007 --The Stallion Group (OTCBB: SLGR) is pleased to announce that the first well drilled on its Area of Mutual Interest ("AMI") in Mississippi was successful.

This well, the CMR-USA-39-14 (Redbug #1), was drilled to a depth of 3,200 feet and encountered 24 feet of pay. The well is now connected to a nearby pipeline and has begun producing natural gas. Production volume will be announced at a future date once the production has stabilized.

The second well in this Phase II is the Dixon #1 well, which reached total depth of 8,650 feet, and reached the Wilcox formation. However, after testing, the well showed no hydrocarbons and therefore it was plugged and abandoned.

A third well has been drilled, TEC-1 closure (Faust #1) and testing is currently underway.

Stallion has a 30% interest in approximately 200,000 gross acres of land in Mississippi.

The company plans to drill an initial 50 wells within the area of mutual interest (AMI). Over 7,500 miles of 2D seismic and 250 square miles of 3D seismic have already been shot. Over 100 drill targets have been identified to date and drilling will occur throughout the year.

The drilling program will be conducted by Griffin & Griffin Exploration in its capacity as operator. Griffin & Griffin of Jackson, Mississippi has enjoyed a solid reputation as an oil and gas industry for over 40 years.

About Stallion

The Stallion Group (OTCBB: SLGR) is an independent oil and gas company focused on developing proven energy rich areas of North America. The Company has developed a foundational strategy for success which includes careful analysis of every opportunity to see how it fits with the overall plan for the Company's future.

Forward-looking statement

Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of THE STALLION GROUP ("Stallion"), or developments in Stallion's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include any statement relating to future events, conditions or circumstances. Stallion cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, changes in the resource market; the market focus of Stallion; Stallion's revenue mix and margin targets; Stallion's operations priorities; and Stallion's strategy for its products and solutions. The risks and uncertainties that may affect forward-looking statements include, among others, the completion and integration of acquisitions, the possibility of technical, logistical or planning issues in connection with deployments, the continuous commitment of Stallion's customers, demand for Stallion's products and other risks detailed from time to time in Stallion's filings with the Securities and Exchange Commission. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

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