NAEG Announces Oil Sale and Purchase Agreement with Shell
Canada News Wire via COMTEX
Oct 3, 2006 10:09:30 AM
FOREST HILLS, N.Y., Oct 3, 2006 (Canada NewsWire via COMTEX News Network) --
Native American Energy Group, Inc. (the "Company" or "NAEG") (OTC Pink Sheets: NVMG) is pleased to announce it has signed an Oil Sale and Purchase Agreement (SPA) with Shell Trading (US) Company (Shell), and is to begin supplying high-gravity oil from its producing wells in N.E. Montana to Shell immediately.
Shell Trading buys and sells several million barrels of hydrocarbons per day in physical markets, making it one of the largest petroleum supply and trading organizations in the industry. The above SPA was consummated in August, subsequent to the sample testing, approval and purchase, by Shell, of NAEG's initial oil production from the Tribal 7-A and COX 7-1 wells located on the Fort Peck Indian Reservation. Said contract shall be ongoing, and the purchase price adjusted-to-market at regular intervals during which unlimited period, Shell will acquire all future oil production from all NAEG wells in Montana.
Raj Nanvaan, Vice President and CFO of Native American Energy Group, stated, "We are pleased that Shell Trading was enthusiastic about being our buyer. This represents NAEG's first sale of oil to the North American oil market. We look forward to this relationship with Shell on our Montana project, and believe both Native American Energy Group and Shell will benefit from this interaction. I am happy to report to shareholders and investors, alike, that Native American Energy Group is firmly and uniquely positioned, today, in our niche. The nation's demand for energy has increased as a result of factors like the booming economy, high population growth, industrialization and urbanization. There is increasing demand for oil and natural gas as a consequence of this increase in demand for energy."
Joseph D'Arrigo, President and CEO of Native American Energy Group further commented, "By design, NAEG has gained the geographical advantage to help meet this demand for oil & natural gas by acquiring an infrastructure and inventory of historically producing wells in the oil & gas rich, Williston Basin region; while at the same time, NAEG's production results, I am very pleased to say, also benefit local Native American tribal communities and landowners whom are in need of revenues from those resources. This has become our "niche," as we were invited to do. As an independent energy company in current production on tribal land, we, at NAEG, aim at meeting the energy demand of our country by means of these oil and gas development projects, as well as, contributing to the economic well-being & long-term stability of all of Montana's native tribes that are involved. Therefore, NAEG carries on studies, acquires and develops prospective leases, and reaches agreements with natural gas and oil suppliers such as Shell to help meet this increasing demand. We will continue with the good work we have started here, as NAEG strives to meet its production schedule."
Just a refresher, I didnt realize Shell was buying ALL the oil from our wells in Montana!
