FOREST HILLS, N.Y., July 31 -- Native American Energy Group, Inc. (the "Company," or "NAEG") (Pink Sheets: NVMG), an independent, energy resource development and management company, in an effort to keep shareholders informed, today released the following corporate update from its President & CEO, Joseph D'Arrigo:
Dear Fellow Shareholders,
Significant resources were focused by management on the purchase of the rig, on building the Company's infrastructure (which is on-going), and on development for the ultimate commercialization of our properties. We have made every effort to stay on track with the Wilson for its delivery. As this was one of the predominant shareholder concerns, the status of NAEG's Wilson 38 workover rig is that it has not yet been delivered but we are arranging for it to be mobilized from Texas, shortly. The delay was due, in part, to our expectation that we could obtain all of the specialized parts in a timely fashion necessary for the customization and equipping of the rig. But also there were about two months of prolonged rainy periods affecting Texas that caused heavy flooding and various delays.
A matter of serious concern that occurred during the interim was when we learned of several cases of intense probing on the part of some of our own public shareholders, whom in some cases misrepresented themselves as 'the Company' while doing so. Our organization was intent on growing the business and further strengthening NAEG's competitive position. Instead, from out of the blue, we had these individual investors who apparently decided to take these liberties of this kind for their own personal gain, seeking privileged information and such, and wound up entering highly sensitive areas that the Company was negotiating. As a result of those particular acts of interference, a lot of negative issues arose from the different parties that had been contacted, which management then had to tend to.
What we have concluded is the following: The Company has decided to exercise its right as a non-reporting company to preserve the last eight years of its hard work and dedication, of building its reputation and key relationships, and to ensure the successful execution of its projects by guarding itself against outside interference such as we just had.
Any Savvy investors would understand how sensitive negotiating projects are regardless of who's involved. When dealing with a group of people like the Native Americans, more often then not they were the recipients of the raw end of the deal, which makes our process even more sensitive and complex. Therefore, in my opinion, our company can no longer afford to publicly announce nearly as much information as we did in the past. Progress reports regarding the many meetings, for instance, that we arranged over the past several weeks & months, most likely, won't be as forthcoming. Nor are the definitional missions that our core NAEG team carried out necessarily going to be announced with very many specifics anytime soon either. This is the harsh reality because we do not appreciate having our efforts confounded by our shareholders. We want to use our time being completely focused on the successful negotiation of our projects for the sake of the tribes that are involved, as well as for ourselves.
I am aware that many of you are long-term shareholders who may have invested in this company because of the promise of our Wiliston Basin properties and other projects. We look forward to accomplishing the goals we have set. In regards to our endeavors and the recent quiet period on the part of the Company, it's going to be pretty much as I have outlined above. Certain of the properties we have under our control, we believe, have great potential. The Wiliston Basin in northeast Montana, where we began, is known to have launched the state's second oil & gas boom. There are a number of other resources geographically located in the Rocky Mountain region that are also worth developing where NAEG may play a part. Management has been very busy these past several months as our reputation in the industry continued to bring us additional opportunities. We believe we have chosen our projects well.
NAEG has evolved, and the projects we are currently working on require more interaction with various groups throughout the country. Our team that is handling this consists of very qualified and professional individuals who are playing a pivotal role in growing the company. We work as a unified team to accomplish our business goals. To this end, we want to avoid any such conflict that's going to impede the flow of progress or that is plainly incongruous to meeting the goals at hand, such as:
Specifically, we received several complaints of flagrant intrusions into the Company's affairs, in which perhaps a handful of over zealous shareholders apparently looking to manipulate markets had repeatedly contacted and handed out damaging misinformation to several of NAEG's potential business partners, tribal officials, and/or affiliated organizations, companies or individuals.
In addition, it was further brought to our attention that unauthorized (and possibly inaccurate) promotional activities which at no time did the Company condone, such as spam e-mail campaigns over the internet, were apparently carried out by someone, probably resulting in the dissemination of a certain amount of misinformation about the Company. These acts have burdened the Company with setbacks and also unnecessary scrutiny.
Faced with this kind of needless disruption to our affairs, the board will be obligated to consider taking Native private, rather than struggle with potentially irreparable harm to our negotiations. This would allow the company more operating flexibility, without being under the constant close scrutiny of such investors who apparently have their own agenda. Under this scenario, if and when it is resolved to forgo remaining public, the Company's principal stockholders would possibly offer a tender to buy back all of its outstanding shares at a reasonable premium that can be determined at a future date. Excluded from the offer would be shares held by principal stockholders, certain management personnel and other specified stockholders. No definitive timetable has been established for a buyout.
Thank you for your support and patience. Joseph D'Arrigo President & CEO
Safe Harbor Statement: This News Release contains 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, relating to the anticipated transaction, the Company's plans to go private and similar matters, as well as, with respect to corporate objectives, projections, estimates, operations, acquisition and development of various interests and certain other matters. These statements are subject to a variety of risks and uncertainties, including without limitation the fulfillment of the conditions to the transaction described above. 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. The forward looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligations to release publicly any update or revision to any forward looking statement contained herein if there are changes in the Company's expectations or if any events, conditions or circumstances on which any such forward looking statement is based. Native American Energy Group, Inc.
CONTACT: Richard Ross, Dir. Investor Relations of Native American Energy Group, 1-800-780-8076, or ir@nativeamericanenergy.com
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