Chancellor Group Inc (CHAG)

[OilStockReport]

We like the area play here. Capital to move forward and some momentum and this could become a good play.

From latest 10q

The Company is licensed by the Texas Railroad Commission as oil and gas producers and operators. The Company and its wholly-owned subsidiaries, Gryphon Production Company, LLC and Gryphon Field Services, LLC, own 143 wells, of which 20 are water disposal wells and 2 are gas wells, although “associated” gas is also produced from some oil wells. As of June 30, 2010, approximately 70 oil wells are actively producing. We also own and operate our 15.9 acre property, with its shop, yard and office complex. Company equipment includes two work-over rigs as well as other oil field related equipment.

In addition, we own approximately 4,200 acres of production rights on six leases, which includes 500 acres of undrilled acreage, approximately 300 acres of which was previously owned by Mobil, and the balance of approximately 200 acres on the Worley Combs lease. The six leases have the production rights for oil, casing-head gas and natural gas.

We produced a total of 4,667 barrels of oil and 4,933 mcf of gas in the six months ended June 30, 2010. The oil is light sweet crude and the natural gas has very high heat content, 1600 to 2600 btu/scf.