Hemi Energy Announces Well Developments in Two Kansas Counties

  
    
  
  
    
      Hemi Energy Group, Inc. (Pink Sheet:HMGP) The Sturgeon-Hemi 1 is a good 
      producing new well with a high quality green oil (39 specific gravity) 
      exceeding our expectations for our first new well located on the 
      Sturgeon Lease near the town of Cherryvale in Montgomery County, KS. 
      This new pay zone in the Bartlesville geological formation on this 
      lease, in our opinion, still has its original gas-water solution drive. 
      This well, that has been thoroughly logged and tested, and when the 
      completion techniques are finalized in less than two weeks, will produce 
      an exceptional volume of high-quality oil. We will be able to give 
      shareholders a barrel count per day as soon as the fracing fluid is 
      recovered and production baselined. There were also two pay Coal Bed 
      Methane (CBM) zones of very economically viable natural gas development, 
      we chose not to produce at this time and leave "behind pipe" for future 
      development.
    
    
      Hemi drilled a deep exploratory well on the Tebbens Lease which allowed 
      us to discover several coal bed methane (CBM) gas and oil pay zones not 
      previously explored in Woodson County, KS. An important new geological 
      pay zone, the virgin Tucker Sandstone formation heretofore unknown to 
      exist in Woodson County, had an exceptional show of crude oil. Hemi 
      management strongly believes that when produced these gas-water solution 
      drive wells may produce exceptional oil wells similar to the historical 
      early 20th century original oil wells produced from the Squirrel 
      sandstone geological formation. We will be producing this new oil pay 
      zone once we have received the information from the drilling cutting 
      samples and evaluated the information obtained from open hole logging. 
      There was also an excellent oil show in the Squirrel pay zone in the 
      deeper new well on the Tebbens lease. This deeper well will be needed as 
      a water injection well in anticipation of ramping up multiple new well 
      production so that we can produce oil from the new wells at the highest 
      rate possible. We are drilling an offset well less than 100 ft. from 
      this well so that we can produce the excellent oil show we had from the 
      Squirrel Sandstone formation. Management believes, based on extensive 
      experience in producing oil from reworked oil fields, that by using the 
      new injection well to de-water the mature wells this will increase oil 
      migration to the mature wells on the five contiguous leases in Woodson 
      County.
    
    
      Management and groups assisting Hemi are addressing issues involving the 
      artificial low market cap. Management knows that the total value of the 
      oil and gas reserves in Kansas, BOE values on leases in four other 
      states, an extensive library of geological information, and management 
      experience, confirms that the undervalued stock market price is 
      irrational considering all the values and fundamentals above.
    
    
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      Act of 1995
    
    
      Statements in this press release relating to plans, strategies, economic 
      performance and trends, projections of results of specific activities or 
      investments, and other statements that are not descriptions of 
      historical facts may be forward-looking statements within the meaning of 
      the Private Securities Litigation Reform Act of 1995, Section 27A of the 
      Securities Act of 1933 and Section 21E of the Securities Exchange Act of 
      1934. Forward-looking information is inherently subject to risks and 
      uncertainties, and actual results could differ materially from those 
      currently anticipated due to a number of factors, which include, but are 
      not limited to, risk factors inherent in doing business. Forward-looking 
      statements may be identified by terms such as "may," "will," "should," 
      "could," "expects," "plans," "intends," "anticipates," "believes," 
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      the expectations reflected in the forward-looking statements are 
      reasonable, we cannot guarantee future results, levels of activity, 
      performance or achievements. The company has no obligation to update 
      these forward-looking statements.