HMGP Hemi Energy Group Inc (GM)

Hemi Energy Group, Inc. (Pink Sheets:HMGP) has acquired several leases, that when expertly produced, will be our most valuable leases with reserves of all our Kansas lease holdings. This lease acreage has five pay zones and two of the geological formations have exceptional to prolific potential production. These leases have at least five exploratory wells drilled and need Hemi's expertise to reach their true revenue potential. For proprietary reasons, Hemi cannot divulge detailed information about this lease at this time, but we expect to begin releasing information within the next 30 days. Hemi has the driller's records and well log information on these wells, which has enabled them to make very accurate production evaluations. In addition to this lease information, Hemi's library of extensive geological information gives us very valuable knowledge about the blanket formations surrounding this lease. Hemi has acquired additional leases that will add approximately 2200 acres contiguous or adjacent to our 5 leases with mature wells & proven reserves in Woodson County. This will give Hemi a total acreage equal to almost 11 square miles which has blanket geological formations in this part of Woodson County. This new lease acreage is part of an ongoing larger lease program in Eastern Woodson County, Kansas that we expect will become a total of more than 17 square miles by the end of this quarter. When these 5 mature leases, with proven reserves, were originally drilled there was a gas solution drive in the pay zone that produced oil wells that had production of nearly a hundred barrels or greater per day per well. Management believes that these newly acquired virgin leases will produce similar or better production than the mature leases results based on historical notes, i.e. driller's notes, well logs, core samples, etc. Neither Hemi's management, nor Hemi Energy, Inc., has sold stock in the open market in 2007. The leases that have been acquired in 2007 have been acquired predominately for cash, through attractive royalty concession and only an insignificant number of new shares have been issued for these new leases. Even though Hemi and others have addressed some of the issues that caused the artificially low market cap, management still strongly believes the market price does not begin to reflect fundamental asset values. We are continuing to address the ongoing issues that will help to bring our stockholders equity in line with the total value of the proven and probable reserves in Kansas. The total value of the oil and gas reserves on leases in Kansas, lease values in four other states, Hemi's extensive research library and management's experience forms the basis of this evaluation. Hemi Energy Group is an independent crude oil and natural gas producer employing a unique business model capitalizing on technological advances to exploit mature fields with millions of barrels of proven oil remaining in the ground. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.