Native American Energy Group Inc. (fka NAGP)

[wtctexas]

NAEG Acquires Historic Shell Oil “Discovery” Well

" For the onlookers...Just in case the have not read the available information on this company"

FOREST HILLS, N.Y., Sep 19, 2006 (BUSINESS WIRE) -- Native American
Energy Group, Inc. (the "Company" or "NAEG") (OTC Pink Sheets: NVMG) is
pleased to announce the acquisition of the Beery oil lease. The lease contains
the Beery 42-24 which is a stepout from the N.P. No.1 that was initially drilled by
Shell Oil. The N.P. No.1 was the wildcat strike that became Shell’s “discovery”
well for the eastern Montana part of their Williston Basin drilling program that
commenced May 10, 1951, and actually marked the beginning of the boom.
Other than historic value, NAEG’s team of geologists had identified the Beery
Well and the Richey Field, on which it is located, as strategically important
acquisitions that will enhance the position of the Company, according to thorough
data assessment and geological evaluation performed. The Company has
agreed to reactivate the entire Richey Field.
The Richey Field was discovered by Shell Oil with completion of the Beery 42-24.
Shell drilled a total of 12 wells in this field of which 10 wells were completed with
flowing rates between 200 to 2600 barrels of oil per day. The Beery 42-24 was
the best well in this field with an initial flow potential of 5,378 barrels of oil per
day. By 1960, Shell Oil sold the field to independent operators due to problems
dealing with the accumulation of paraffin. The operators attempted to deal with
the paraffin problem by applying hot oiling methods to demulsify the wax. Such
methods used to provide very high production for short periods of time and then
plugged up the production again. The operators were lucky to keep these wells
pumping a fourth of the time with increased workover rig operations, hot oiling,
equipment repairs and heavy expenses. The operators finally abandoned the
field in 1995.
NAEG’s proprietary, enhanced recovery technology has been very successful
with paraffin. The last two wells completed in August had similar paraffin
problems. After the treatment, the paraffin was cleared up and the there was a
1200% increase in production on the first well and 1500% on the second well.
The Company plans to enhance and reactivate these wells using the same
treatment.
Acquisition Program
NAEG management is currently focused on an acquisition program, targeting oil
& gas wells that were shut-in or abandoned that still contain ample reserves and
are deemed suitable for revitalization, and other quality oil and natural gas leases
in the Williston Basin area of Montana. The Company’s immediate goal is to
achieve sustainable oil production growth and strong cash-flow for the Company
prior to the arrival of Montana’s colder winter months.