Hemi Energy Group Issues Update On Montgomery And Woodson County Leases In Kansas

Graham, TX - Hemi Energy Group, Inc. has issued the following update on the Montgomery and Woodson County Leases in Kansas:

The two reworked oil wells on the front of the Montgomery County lease are producing combined total of 25 bbls per day. The tank capacity on the back of the lease is currently being increased so that we can bring the four additional mature reworked oil wells on line. Therefore, the production for the full month of March from all six reworked oil wells will clearly exceed our February projection of 1500 bbls of oil. The shut-in gas well on this lease and the value of the two gas zones on the lease will make developing the gas formations financially obvious. Hemi Energy has 100% working interest (net revenue interest of 80%) in this lease near the town of Cherryvale, Kansas.

We are acquiring an additional approximately 1400 acres adjacent to the five contiguous Woodson County leases, says company source. This lease is completed when the necessary paperwork is finished and filed with the Woodson County Clerk. It is Hemi's belief that the new 1400 acres, when compared to the new reserve report for five Woodson County leases, will be comparable to the probable reserves in the report and also based on Hemi's library of geological information for Kansas.

The formal independent geological reserve report will be released next week. The reason for this delay is new important information from the Kansas Geological Society in Wichita, Kansas which was discovered by the geologist while completing his report. This information, dating back to as early as 1916, was not known to have existed. This information, about the immediate area of our leases in Woodson County, Kansas, was uncovered during the extensive research done to complete this report.

SOURCE: Hemi Energy Group, Inc.