NAEG Receives Funding and Acquires 1st Oil Rig
9:38a ET March 7, 2007 (Business Wire)
Native American Energy Group, Inc. (the "Company," or "NAEG") (OTC Pink Sheets: NVMG) has received the first round of its $5 million financing as required under the Loan Agreement from the energy arm of a Foreign Investment Group. The Company also announced today that it has made the final payment on Rig #1. CFO, Raj Nanvaan stated, "It looks extremely promising for NAEG."
The Company is very pleased with the favorable terms of the loan. Mr. Nanvaan, who now serves as Vice President and CFO, was instrumental in sourcing the $5,000,000 loan at 8% interest for the energy company that he and President Joseph D'Arrigo founded two years ago. The note, which is being collateralized with restricted shares of the Company's common stock (with no conversion feature), supercedes & replaces all other previous funding proposals that the Company has considered.
Raj Nanvaan commented, "Fulfillment of our funding needs means achieving sustainable levels of growth this year that were not previously possible. In terms of NAEG's oil & gas projects... all categories, including acquisitions, development, production, and sales are expected to show fairly dramatic increases throughout the year. We know that production rates after completion are directly related to the size of your pocket book, the location of the properties, and the right combination of drilling and completion technologies. After that, it's a matter of repetition."
"The investment from this group will also help us to rapidly execute on our vision to integrate renewable energy systems, such as Wind Farms, with our core Oil & Gas business that is already underway. These components will both contribute to what we are projecting will be a vastly increasing revenue picture later in the year. Another important project on the agenda is Housing construction that we are joint-venturing on the reservations with Eurowest Panel Homes. That is quite a large market in itself considering the immediate need of 200,000 homes in Indian country," said Nanvaan.
The Company has significant oil & gas interests in various stages of development located in the Williston Basin which also include the Bakken Formation, which is the largest oil producer among all of the nation's onshore geologic formations. Much of the recoverable oil reserves in the various pay zones can still be produced after conventional development. Initially using enhanced oil recovery techniques to tap into the Formation, NAEG successfully enhanced and reactivated their first 2 oil wells during 2006. NAEG plans to deploy 2 rigs to the region. They will then execute the Enhanced Oil Recovery (EOR) process on 10 - 20 wells. The company also intends to joint-venture with other Rocky Mountain oil companies currently active in the region with regards to directional drilling on its potential oil leases overlying the Bakken Formation.
In addition, as part of NAEG's mineral & economic development plan for the reservations that are involved, they will also showcase safe, affordable, energy-efficient homes that will be constructed under NAEG's own license. The Company also intends to implement modern alternative energy systems, such as wind farms and geothermal energy solutions. Our Native tribal communities and landowners are in need of revenues from the resources on their lands. Through synergies with the tribes, Native American Energy Group's goal is to provide social, economic, and environmental benefits to tribal nations across the USA.
Chief Executive Officer, Joseph D'Arrigo of Native American Energy stated, "There are some serious investments that need to be made to develop and support the opportunities and programs that we have PR'd to date. We have just made the final payment on Rig #1 of the two rigs that we have secured. Oilfield equipment is very hard to acquire these days considering the oil & gas activity in the country. These are rigs that we had been looking for since August 2005. As a second example, take what we have lined up geographically through our lease acquisitions already completed in Montana. These oil & gas properties with their large recoverable underlying oil deposits currently estimated at 5 million barrels are the basis for this Company's strong foundation in terms of valuation and potential production values. Oil is how we make money. We will therefore continue to spend & lock down additional quality oil & gas leases during this quarter." (More information on the rigs & delivery dates will be released via a separate announcement.)
Mr. D'Arrigo added, "Our strategy is to enhance the position of the Company operationally and in the public marketplace, and to carry out certain additional expansion activities that we have planned. The fundamental improvements that we will initiate early in the year to each of our component businesses should serve to add exponentially to the bottom line in future quarters. NAEG has arrived at the point where the Company has been recognized as a very exciting investment opportunity. We are pleased to be aligned with an International Organization that finances and promotes programs for health, energy, economic & social improvement, and self-sufficiency to benefit indigenous peoples worldwide on both an economical and humanitarian basis."
Industry Update:
Economic and financial publication, 'Money Matters' released a report on February 28, 2007 that may be of significant relevance to investors who may be contemplating ownership of oil stocks in general. An excerpt from Money Matters, entitled "Calm Before The Storm?" by investment adviser Puru Saxena features a 200-year Commodity Cycle Chart that very clearly appears to be headed up again, as it has during all previous times of world conflict & war. Mr. Saxena also makes the case that the current commodities bull-market may see energy stocks appreciating significantly, should oil prices climb sharply. This Money Matters article can be seen at the following link:
http://www.kitco.com/ind/Saxena/feb282007.html
NAEG's previous achievements can be accessed on the Investor Relations page below:
http://www.nativeamericanenergy.com/investorrelations.htm
Joseph D'Arrigo, President and CEO
Safe Harbor Statement: This News Release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities & Exchange Act of 1934, as amended, with respect to corporate objectives, projections, estimates, operations, acquisition and development of various interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.
SOURCE: Native American Energy Group, Inc.
Native American Energy Group, Inc. Richard Ross, 800-780-8076 Dir. Investor Relations ir@nativeamericanenergy.com http://www.nativeamericanenergy.com
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