Hemi Energy Completes Valuation of Equipment in Woodson County, Kansas

  
    
  
  
    
      Keith Anderson, CEO and President of Hemi Energy Group, Inc. (Pink 
      Sheets: HMGP), and Craig Treiber, Vice President, on the three-day 
      inspection trip started Oct. 26, completed a detailed valuation for the 
      reconditioned and rebuilt equipment at the wells located on over 3 
      square miles of leases in eastern Kansas. There are 16 100 bbl oil 
      tanks, eight 220 bbl water tanks and eight gun barrel water/oil 
      separation vessels for a total of 32 tanks spaced over the five leases 
      described above. There are 65 pump jacks on which the re-building has 
      been completed, and an additional 39 pump jacks that are at various 
      stages of re-building. There are 100 down-hole pumps used in the 
      production of oil. There are also three saltwater stainless steel water 
      injection pumps that are in use on our two water injection wells.
    
    
      The total value for the above-described equipment is $324,000, based on 
      a survey of current fair market values from re-built oilfield equipment 
      dealers and end users in Kansas.
    
    
      Anderson stated, "The stock price is currently valued well below the 
      cost of leases owned in four states, and the re-built equipment on the 
      five Kansas leases in Woodson County, Kansas, as detailed in this press 
      release. Stock price also does not reflect the true production value of 
      the oil reserves yet to be produced from the over 100 old oil wells 
      presently owned by Hemi, several of which having been completely 
      re-worked and currently producing oil in Woodson County, Kansas."
    
    
      Detailed information, as completed, will be released in November about 
      wells on another lease in Kansas and leases in four other states that 
      are already owned by Hemi Energy Group, Inc.
    
    
      About Hemi
    
    
      Hemi Energy Group is an independent crude oil and natural gas producer 
      employing a unique business model capitalizing on technological advances 
      to exploit mature fields with millions of barrels of proven oil 
      remaining in the ground. Using attractive lease/royalty packages, Hemi 
      has secured, in its history, tens of thousands of acres of productive 
      domestic projects. The company's forward-thinking strategy has placed it 
      in an enviable position at a time when prices and global demand for oil 
      continue to rise.
    
    
      Building on decades of experience in enhanced oil recovery, Hemi has 
      successfully amassed a substantial and attractive portfolio of these 
      high-quality domestic properties. By streamlining operations through 
      cutting-edge technologies, Hemi has the ability to operate more 
      effectively and efficiently than larger oil companies. For additional 
      information, please go to www.hemienergy.com 
      or http://www.stockinformationsystems.com/c/HMGP/index.html.
    
    
      "Safe Harbor" Statement under the Private Securities Litigation Reform 
      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," 
      "estimates," "predicts," "forecasts," "potential," or "continue," or 
      similar terms or the negative of these terms. Although we believe that 
      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.
    
  
Keith Anderson, CEO and President of Hemi Energy Group, Inc. (Pink
Sheets: HMGP), and Craig Treiber, Vice President, on the three-day
inspection trip started Oct. 26, completed a detailed valuation for
the reconditioned and rebuilt equipment at the wells located on over 3
square miles of leases in eastern Kansas. There are 16 100 bbl oil
tanks, eight 220 bbl water tanks and eight gun barrel water/oil
separation vessels for a total of 32 tanks spaced over the five leases
described above. There are 65 pump jacks on which the re-building has
been completed, and an additional 39 pump jacks that are at various
stages of re-building. There are 100 down-hole pumps used in the
production of oil. There are also three saltwater stainless steel
water injection pumps that are in use on our two water injection
wells.

   The total value for the above-described equipment is $324,000,
based on a survey of current fair market values from re-built oilfield
equipment dealers and end users in Kansas.

   Anderson stated, "The stock price is currently valued well below
the cost of leases owned in four states, and the re-built equipment on
the five Kansas leases in Woodson County, Kansas, as detailed in this
press release. Stock price also does not reflect the true production
value of the oil reserves yet to be produced from the over 100 old oil
wells presently owned by Hemi, several of which having been completely
re-worked and currently producing oil in Woodson County, Kansas."

   Detailed information, as completed, will be released in November
about wells on another lease in Kansas and leases in four other states
that are already owned by Hemi Energy Group, Inc.

   About Hemi

   Hemi Energy Group is an independent crude oil and natural gas
producer employing a unique business model capitalizing on
technological advances to exploit mature fields with millions of
barrels of proven oil remaining in the ground. Using attractive
lease/royalty packages, Hemi has secured, in its history, tens of
thousands of acres of productive domestic projects. The company's
forward-thinking strategy has placed it in an enviable position at a
time when prices and global demand for oil continue to rise.

   Building on decades of experience in enhanced oil recovery, Hemi
has successfully amassed a substantial and attractive portfolio of
these high-quality domestic properties. By streamlining operations
through cutting-edge technologies, Hemi has the ability to operate
more effectively and efficiently than larger oil companies. For
additional information, please go to www.hemienergy.com or
http://www.stockinformationsystems.com/c/HMGP/index.html.

   "Safe Harbor" Statement under the Private Securities Litigation
Reform 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," "estimates,"
"predicts," "forecasts," "potential," or "continue," or similar terms
or the negative of these terms. Although we believe that 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.