Chancellor Group Inc (CHAG)

[mmayr]

Chancellor Group Begins Oil Production at Kansas Field
LOS ANGELES, April 6 /PRNewswire/ -- Chancellor Group, (OTC Bulletin Board: CHAG - news) announced today that it has begun oil production on its oil and natural gas property in Greenwood County, Kansas

Ashraf Khan, Chancellor Group CEO, said pumps on two of the field's wells were started recently and the initial outflow of oil was extremely encouraging. Remedial work including acidization was completed on some of the wells and this process is under way on the other existing wells. Negotiations with the buyers of the crude, Plains Transportation, have been finalized and collection of oil is to commence shortly.

In full production the field is expected to produce more than 2,400 barrels of light crude oil a day from 10 existing reopened wells and 20 new infill wells in addition to more than 10 million cubic feet of natural gas a day.

``It has been a long road with many unforeseen delays and we want to thank our shareholders for their patience in the run up towards production,'' Khan said. ``No one was more frustrated by the delays than we were. Now we look forward to bringing more wells online in the coming year and to begin building our company's bottom line.''

Chancellor Group Inc., currently has 28 million shares of primary common stock issued and outstanding and 36 million shares fully diluted.

Chancellor Group web site: http://www.chancellorgroupinc.com

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Corporate profile also at http://www.thestockbroker.com

Certain information included in this communication contains statements that are forward looking, such as statements relating to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned capital expenditures future funding sources, anticipated sales growth and potential contracts. These forward looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated.

For further information, contact Nelson Fitch, media relations, 310 559-3618; or Ashraf Khan, Chancellor Group, 310 277-6595, [e-mail]; or Broker/Investment: Tom Bustamante of Wall Street Newscast Inc., 212 233-9301.

SOURCE: Chancellor Group Inc.