Northamerican Energy (NNYR)

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http://www.northamericanenergy.net/index.php?action=more&type=news&nid=72&id=134

Investor Newsletter News

October 2, 2008: This Partnership/Investor Newsletter is designed to help keep our investors and partners informed on the kinds of things we’re currently working on, and how these things might interact with Northamerican Energy’s goals and plans for the future.

Specific announcements and news releases may be posted as newsworthy events occur, but in the time periods between those releases our Investor Newsletter will fill in the gaps and continue to keep you, our partner/investors, informed.


Northamerican Energy MLP(I): On July 31st the Partnerships quarterly income distribution, the financials as prepared by our CPA, along with a full report on the activity of the leases was mailed to the individual partners.

Given the current price of oil we are confident that the Partnership's annual income will meet, or exceed, all expectations as the monthly income improves with workovers being completed, and additional production is acquired and brought online.

Acquisition of New Leases and Wells: We are pleased to announce that on September 22 Northamerican Energy Group closed on the acquisition to purchase Sunrise Energy Inc. and its assets.

The assignment, conveyance and bill of sale of Sunrise's assets from Northamerican Energy Group to Northamerican Energy Master Limited Partnership (I) is in process of being filed and recorded in Pecos County, Texas and copies conveying those interests will be included in the next quarterly report.

As part of an ancillary agreement a workover rig, a backhoe, tools and other equipment and tools are also included, equipment which will be used to workover and rework all of Northamerican's leases.

As mentioned previously Carl Hanks, the President of Sunrise Energy, has agreed to come onboard Northamerican Energy Group as our Assistant Director of Field Operations. His initial responsibility will be to oversee and complete the workovers on the wells that are part of this agreement, in addition to assisting John Wilshusen in overseeing Northamerican's ever increasing asset base of wells and leases.

Specific information on Carl is included in the "Board and Management Section" of this website.

The leases and associated well will continue to be worked over, re-equipped and put on production and the initial results on the wells that are already basically completed seem to be much better than anticipated, especially as it relates to the natural gas production.

Should these results continue we anticipate that these leases will return their purchase price in less one year, all of which fully corresponds with our business plan.

We will continue to analyze these opportunities continue to negotiate the acquisition of additional leases/wells for both Partnerships as an ongoing basis and these acquistions will be announced, and reported to our partners, as agreements are finalized.

As mentioned previously all of the leases we plan on acquiring for our Partnerships are properties that are in a mature, existing field, and 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 workovers using a number of workover procedures. After completion we are certain they will return investment, and the workover costs, quickly resulting in positive cash flow for the Limited Partnerships within 6 months after completion.

Current Production - Partnership I: Sunrise's workover rig, which is working on the wells that are part of the Sunrise acquisition, and Burton's workover rig, which is currently working over the the wells on the Breen lease, now gives use temporarily use of 3 workover rigs to help alleviate the availability of workover rigs problem as we continue to expand and grow.

Workovers are progressing each week as equipment becomes available and we continue to put more and more of our existing production back on line each month.

Other Items of Interest: We are please to announce that John Wilshusen's son, J.Doug Wilshusen, has officially joined Northamerican Energy Group as our Land Manager handling lease acquisitions and contract title review.

Specific information on Doug is included in the "Board and Management Section" of this website.

Partnership II Information: Current oil prices, coupled with the fact that we offer our investor/partners ownership in proven production allows us to offer our Partners/Investors returns far greater that they might be able to generate in the current stock market.

In addition 20-30% (depending on the investors tax bracket) of that return is effectively sheltered by the oil and gas depletion allowance (IRS Publication 535-Section 10).

Due to the popularity and success of our current investment program we have decided to expand our program and offer our Partners the opportunity to purchase 1/2 unit and make up to $1000/month on a $30,000 investment, all on the same terms and conditions as the full $60,000 units.

These investors will be given the option to increase their income to $2,000/month by purchasing another 1/2 unit at a later time.

Please contact us if your are interested in obtaining a Private Placement Memorandum package.

In closing we are excited about the new partner relationships we have developed over these past few months as we continue to have lots of new, and exciting opportunities made available to us and hope that these Partnership Investor Newsletters will help you to keep current on what’s happening to our company, and aid you in better understanding what we’re attempting to accomplish.

Kindest regards,




Jon Ginder

Chairman & CEO