CHAG Chancellor Group Inc (CE)

Chancellor Group, Inc. (OTCBB: CHAG), a Texas-based oil producer, announced today that it has begun its search for new oil leases to replace those recently sold.

Chancellor Chairman Maxwell Grant said today, "We are very pleased to announce this new phase of our business following shareholder approval and the successful sale of most of our previous oil and gas properties for approximately $2 million.

"But the wells we sold were old and on long-standing leases.

"We have recently appointed as a consultant a highly-respected American geologist with an international reputation to help advise us on strategic purchases in America.

"Although we retain four producing wells and one disposal well in Texas and still hold an Operator's License with the Texas Railroad Commission, we intend to cast our net wider than Texas and take a serious look at American leases which are more current than the long-standing ones we previously had. We intend to investigate, with the advice of our geologist, leaseholds where there has been some recent activity or where activity is believed to be in the process of beginning to develop."

About Chancellor:

Chancellor Group, Inc. engages in the acquisition, exploration and development of natural gas and oil properties. It is based in Pampa, Texas. For fuller information see Chancellor's filings at www.sec.gov

Safe Harbor Statement:

This Media release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Chancellor Group, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contact: Thomas Nelson Investor Relations 480-326-8577 shareholders@TheChancellorGroup.com