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News from 1/10---
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HEMI ENERGY GROUP INC

Hemi Energy Acquiring Drilling Permits for Four New Wells on Leases in Woodson County, Kansas
1/10/2007

GRAHAM, Texas, Jan 10, 2007 (BUSINESS WIRE) --
Hemi Energy Group, Inc. (Pink Sheets HMGP) is permitting four new wells to be drilled on its Woodson County, Kansas leases. The company will drill its first new oil well of its 2007 drilling program this winter. Winter drilling allows Hemi to establish a good working relationship with drilling contractors prior to the spring new well drilling rush. We expect that all four wells will be completed in early spring. In anticipation of drilling in early 2007, Hemi has had a prototype water flooding system in the area for six months where drilling of the new wells will occur. We are presently preparing for lease improvements to be made to facilitate the drilling of the first well, i.e. road building, site prep, etc.

Hemi has commissioned an independent oil geologist to do an oil reserve report on the five contiguous leases, total lease acreage of greater than three square miles, owned by Hemi in Woodson County, Kansas. We believe Hemi will receive a favorable report based on its extensive library of geological information, collected over many years, and conversations with previous local oil and gas operators, who worked our Woodson County leases in the past. We expect to release this full report not later than mid-February.

Hemi's Montgomery County, Kansas lease near the town of Cherryvale is already producing oil from two of the six mature wells. We will be determining the baseline oil production of bbls. per day from these two wells next week. The lease improvement work and reworking of the four additional wells is on schedule to meet our projection of 1500 bbls. of oil production for February from this lease.

Hemi intends to establish a major presence in the western Humboldt-Chanute oilfield in Woodson County, Kansas both in leases and number of new oil wells drilled in 2007. Enhanced oil recovery (EOR) operations and reworking of mature wells, to bring more wells on line, is ongoing in 2007. To this end, all the above demonstrates the commitment by management to develop this geological formations' potential.

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. Using attractive lease/royalty packages, Hemi has secured, in its history, tens of thousands of acres of productive domestic projects. The company's forward-thinking strategy has placed it in an enviable position at a time when prices and global demand for oil continue to rise.