SOURCE: The Stallion Group

May 22, 2007 16:15 ET

Stallion Group Announces Fourth Successful Well in Mississippi and Louisianna

JACKSON, MS -- (MARKET WIRE) -- May 22, 2007 --The Stallion Group (OTCBB: SLGR) is pleased to announce that the recently drilled Red Bug #2 well has been completed as a gas well.

The well encountered 10 feet of net pay at a depth between 2,630 and 2,640 feet. The permeability is over 1,000 mdarcies and the porosity is above 30% which is excellent in comparison to most Frio gas wells. Stallion expects the production rate to normalize between 225,000 and 250,000 cubic feet of sweet natural gas per day. The well's production rate is the highest rate incurred of the four wells completed to date. The estimated gross reserves are estimated to be approximately 0.35 Billion Cubic Feet. This well has been completed and will be tied into our existing pipeline system as quickly as possible.

The success of this well has proven the importance of using our advanced Bright Spot Technology when interpreting our extensive 2D and 3D seismic portfolio. Our contract drilling rig has been moved to the next drilling location. Drilling of the next well (Buffalo River #2 - F33) commenced on Friday, May 18, 2007. The Company will announce the results of this well upon completion.

The company plans to drill an initial 50 wells within the area of mutual interest (AMI). Over 7500 miles of 2D seismic and 250 square miles of 3D seismic is in various stages of geophysical review as the Company continues to select precise drilling locations. Stallion holds a 30% gross interest in this AMI (area of mutual interest) in Mississippi and Louisiana.

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.

Contact Information