Hemi Energy Group Updates for Kansas and Texas

  
    
  
  
    
      Hemi Energy Group, Inc. (Pink Sheets: HMGP) January oil production 
      ramped up to 669 bbls from the December production of 461 bbls. We sold 
      395 bbls in January and are cash flow positive as we were in December. 
      Even though we are in the dead of winter in Kansas, which required us to 
      periodically shut down some wells on leases for maintenance caused by 
      winter weather, we have still been able to increase production to this 
      level. Not reflected in these numbers is the Bennett lease which is 
      still off line for additional development and service work. The 
      de-watering process is working well as the ratio of oil to water is 
      continuing to improve which demonstrates the oil migration continues to 
      respond positively to our enhanced oil recovery EOR programs. We will 
      see continuing increased production near term and throughout the coming 
      year as the EOR programs expand across the 1800 acres of leases in 
      Woodson County, Kansas that we are re-developing.
    
    
      Hemi increased its checkerboarding of leases in Fort Worth that are 
      intermingled with the Barnett shale leases of two large oil companies, 
      listed on the NY stock exchange, that have major urban drilling 
      programs. We have acquired additional leases that will absolutely be 
      required legally by these two giants for several of their drill 
      locations before drilling can begin. Management's opinion, based on due 
      diligence and experience, is that some of our FW leases will become 
      pooled as part of these large oil companies' drilling operations in 
      2008. Hemi believes these FW leases and proving up of Kansas and Texas 
      reserves will gain recognition from larger oil companies and further our 
      stated goals.
    
    
      Hemi has the funds to start new well drilling in Kansas as soon as the 
      weather allows and the logistics are completed. In early spring Hemi 
      also plans to drill new wells to replace the less efficient or 
      mechanically inoperable mature wells on some of these 5 leases that 
      comprise the 1800 acres in Woodson County, Kansas. We are exploring 
      several options available for development of Texas leases. Funds will 
      also be available for drilling a proven oil producing lease in Texas.
    
    
      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.
    
    
      "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 
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      "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.
    
    
      For additional information please go to http://hemienergy.com.