Chancellor Group Inc (CHAG)

[mmayr]

Oil and Gas Company Chancellor Group, Inc. -- CHAG -- Announces Approval & Funding for Its First Kansas Infill Oil Well


BOSTON--(BUSINESS WIRE)--May 15, 2001--Oil and Natural Gas company Chancellor Group Inc. (OTC: CHAG - news) announced today that the company has received funding and state approval to begin drilling their first infill oil well.

Chancellor Group is very pleased to announce that the company has filed and received approval from the state of Kansas to begin the drilling of the first infill oil well on their Shinkle Field property. The company has also secured financing for the first infill well, and is in the process of scheduling and moving drilling rigs to the Shinkle Oil Field.

The new infill well, once drilled, is forecasted to produce a minimum of 150 barrels a day (4,500 barrels per month), which is in addition to the existing 8 oil wells recently brought online on the Shinkle Field property. The new infill well will also help increase pressure in the oil lines, which in turn will help in the filling process of our storage tanks for pick-ups.

The first infill well will be drilled down to the granite wash at a depth of 2,800 feet, and will give the company a very good indication of existing natural gas and coal methane levels, and will test all the known oil producing formations.

The Company also announced it would file its quarterly report on Form 10QSB with the SEC by the end of this week.

About Chancellor Group

Chancellor Group, Inc. is an emerging small cap energy company involved in oil and natural gas production, and currently has oil and gas properties in Kansas, Texas, and Kentucky with substantial proved recoverable reserves. The company currently has approximately 29.7 million shares of primary common stock issued and outstanding, and 38 million shares fully diluted.

Chancellor Group web site: http://www.chancellorgroupinc.com

Investor Research (real audio): http://www.wallstreetnewscast.com/chag.html

Chancellor Group Yahoo Club: http://www.yahoo.com/clubs/chancellorgroup

Corporate profile also at http://www.oiland gasprofiles.com

http://www.wallstreetdailypress.com

http://www.ceocast.com

Certain information included in this communication contains statements that are forward looking, such as statements relating to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. These forward looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated.

CONTACT:

Chancellor Group, Inc.

Ashraf Khan, Chairman / CEO

[e-mail]

OR

Wall Street Newscast

Broker/Investment contact

Tom Bustamante, 212/233-9301

[e-mail]

KEYWORD: MASSACHUSETTS