Northamerican Energy to Acquire Additional Leases
Wednesday November 8, 12:25 pm ET
HOUSTON, Nov. 8, 2006 (PRIMEZONE) -- Northamerican Energy Group Corporation (Other OTC:NNYG.PK - News) announced today that it has reached an understanding to acquire and assume additional leases in the Permian Basin as part of an overall agreement with a company that works closely with Northamerican on its current lease holdings.
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These properties contain a number of inactive gas and oil wells in shallow (1500'-4300') oil and gas fields located on non-contiguous acreage and leases in Pecos County, Texas. These properties are in a mature, existing field, and these leases were developed and operated until they became inactive in the past 10-15 years when oil and gas prices did not support their continuing operation.
``These leases and their wells are low-cost, low-risk, primary production properties in need of work over using numerous types of both new and proven oil field technology. These properties fit perfectly into Northamerican's strategy of acquiring economically viable leases that will return investment and workover costs quickly resulting in positive cash flow for the company within 12 months and are extremely pleased that these leases will enable us to continue in our program to acquire these types of properties,'' stated Jon Ginder, Northamerican Energy Group's CEO.
Northamerican Energy Group has developed a proven growth strategy of identification, acquisition, and development of domestic hydrocarbon reserves. The Company will concentrate on acquiring prospects, which are and have proven oil and gas production which has been operating for many, many years. By acquiring working interests in proven low-risk fields, the Company minimizes the risk by not ``wildcatting or drilling dry-holes'' and incurring any expense of building major infrastructure to get the product to market. Finally, the Company's low-cost operations and low overhead structure allows the Company to maximize the income and revenue from each production lease.
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