Chancellor Group Inc (CHAG)

[mmayr]

Energy Company Chancellor Group Inc. Announces Additional Crude Shipments and Expansion of Kansas Oil and Gas Facilities

LOS ANGELES, June 26, 2001--Oil and natural gas company Chancellor Group Inc.
(OTCBB: CHAG ) today advised that it had shipped an additional approximate net 220 barrels of crude oil from it’s Shinkle Field property in Kansas.
The Company stated that the lower than expected crude quantities to date were primarily a result of old equipment and other issues related to the existing wells, and these were gradually being corrected. The Company’s focus remains on it’s infill well drilling program rather than production from existing wells.
Chancellor said that the drilling rigs remained on schedule to commence, next week, the drilling of the first five new wells, as previously announced. The first part of new road works will commence this week, and the Company is undertaking the immediate expansion of its storage tank battery to handle the expected increases in production.

Chancellor Group web site: http://www.chancellorgroupinc.com
Chancellor Group Yahoo Club: http://www.clubs/yahoo.com/chancellorgroup
Corporate profile also at http://www.oilandgasprofiles.com
http://www.wallstreetdailypress.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
Nelson Fitch
[phone]


Peace,

M&M Man