Native American Energy Group Inc. (fka NAGP)

[jabberstox]

5 mil for the rigs...dont you think the people who made this loan would be screaming if they hadnt purchased those rigs or do you think they said.....oh, heres 5 million have fun with it....

NAEG Announces Oil Sale and Purchase Agreement with Shell
October 3, 2006
NAEG Announces Oil Sale and Purchase Agreement with Shell
FOREST HILLS, N.Y., October 3, 2006 /CNW/ - 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."

About Native American Energy Group, Inc. (OTC Pink Sheets: NVMG)
http://www.nativeamericanenergy.com/aboutus.htm

NAEG's previous achievements can be accessed on the Investor Relations
page: http://www.nativeamericanenergy.com/investorrelations.htm

Safe Harbor Statement: This News Release may include forward-looking
statements within the meaning of section 27A of the United States Securities
Act of 1933, as amended, and section 21E of the United States Securities &
Exchange Act of 1934, as amended, with respect to corporate objectives,
projections, estimates, operations, acquisition and development of various
interests and certain other matters. These statements are made under the "Safe
Harbor" provisions of the United States Private Securities Litigation Reform
Act of 1995 and involve risks and uncertainties which could cause actual
results to differ materially from those in the forward-looking statements
contained herein.
Source: Native American Energy Group, Inc.


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