Hemi Energy Group Issues North Dakota and Kansas Lease Update

  
    
  
  
    
      Hemi Energy Group, Inc. (Pink Sheets: HMGP) announces the new well on 
      the Collins lease in Woodson County, Kansas has been fraced. Management 
      believes this will be a good producing oil well based upon drill 
      cuttings and wells logs and other experts' opinions. We will release a 
      bbl count per day as soon as it is available, which should be someday 
      next week based on normal completion techniques. We have 100% working 
      interest and 80% net revenue interest in the Collins lease that is not 
      mature and has had no oil production. Management believes the important 
      natural gas - water solution drive is present in this well. Therefore 
      longer production and slower decline curve will be much better than 
      wells that were drilled on mature leases that have lost most of this 
      drive. This well will have a much longer lasting production at a higher 
      rate than wells which have been drilled on leases with mature wells in 
      southeast Kansas. The new Weseloh well is producing oil but needs some 
      additional completion techniques before we can determine its rate of 
      production.
    
    
      Hemi is in definitive document review for development of our very highly 
      valued leases in North Dakota. There are wells producing multi-million 
      dollar revenues per year per well on three sides of these leases that 
      have and are expected to continue to produce millions in revenues for 
      many years. Hemi also continues to be in several other on-going 
      negotiations about development of leases in two other states.
    
    
      Hemi's new oil well on the Weseloh lease has also identified the same 
      five coal bed layers as are in our mature leases and the Collins lease. 
      The new well's coal bed layers have very similar characteristics to the 
      coal beds that are found approximately five miles away in our five 
      mature leases with oil production. Therefore, a logical conclusion is 
      being confirmed that there is a continuous blanket formation of very 
      economically producible coal bed methane gas underlying these two groups 
      of leases in southeast Kansas. The well logs of our new drilling is 
      documenting that we have blanket CBM pay zones in the geological 
      formations on these leases in southeast Kansas. When the new independent 
      Kansas oil and gas reserve report is completed it will greatly increase 
      the proven and probable oil reserves. This new report will include, the 
      five mature leases, the three newly drilled leases, and for the first 
      time the very substantial CBM gas reserves on all these leases in Kansas.
    
    
      Hemi's very artificially low market cap is substantially book value 
      based on conservative oil and gas industry standards, especially when 
      ongoing lease negotiations and North Dakota's leases are factored in. 
      Since stated number of shares outstanding in the April 17th press 
      release, there were a little more than three million shares issued that 
      are restricted and a little over one million shares were issued 
      free-trading in total. Hemi has been cash flow positive for all of 2008 
      and continues to be cash flow positive from oil production. Hemi has 
      more than sufficient funds on hand to complete the three new wells and 
      all the supplies and equipment necessary for oil production from these 
      wells. In addition to its budgeted funds, Hemi is also tanking oil as 
      the price has risen the past several months.
    
    
      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.
    
    
      "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.
    
    
      For additional information please go to http://hemienergy.com.