Kansas Coal Bed Methane Gas Update

  
    
  
  
    
      Hemi Energy Group, Inc. (Pink sheets: HMGP) has identified five coal bed 
      layers under the five mature leases with oil production in Woodson 
      County, Kansas. The five coal bed pay zones, starting from the deepest 
      to the shallowest are the Riverton, which sets on top of the Mississippi 
      formation, the Weir-Pittsburg, Bevier, Mulky and Summit. The Bourbon 
      Arch, which is a geological feature, is approximately forty miles long 
      and all of these coal beds lie on top of the Bourbon Arch. There are 
      more than two billion cubic feet of coal bed layers and these results 
      only include some of the layers of coal beds. Testing is still being 
      completed at the lab of the coring and cutting samples of these layers. 
      When the analysis is completed at the laboratory, the information can be 
      used by the geologist to update the reserve report to include the CBM 
      gas. The geologist will use this information and other detailed 
      geological information to determine the amount of CBM gas. Hemi's lease 
      acreage of the five mature oil leases is approximately three square 
      miles. The company also has additional leases that are adjacent or 
      contiguous which have several times the total acreage of these five 
      mature leases. This area of southeast Kansas is well documented as 
      having blanket geological formations especially in CBM pay zones. Coal 
      bed methane gas, when properly produced in our area of Kansas, has a 
      very long commercial life expectancy, many times ten years or more 
      years, because methane coal beds regenerate the methane gas. 
      Management's opinion and experience is that there is significantly more 
      total cubic feet of coal beds and therefore there will be a large volume 
      of CBM gas when the updated reserves report about oil and gas is 
      released.
    
    
      Hemi President Keith A. Anderson issued this statement: "The high crude 
      oil and gasoline prices has impacted each and every American, as the 
      world seeks alternative sources of energy and CBM gas is a renewable 
      energy resource. With that thought in mind, Hemi has been drilling and 
      developing wells, we have been employing the highest levels of the 
      industry standards for drilling and completion techniques which will 
      allow these wells to continue producing decades into the future. Due to 
      the current economic climate we have focused on crude oil production, 
      near term. While choosing to leave the CBM gas behind pipe as proved 
      undeveloped reserves for future use. Converting the current oil wells 
      into CBM gas wells or comingled CBM gas/Crude oil production wells will 
      be a relatively simple, straight forward, low cost conversion of these 
      bore holes. Ongoing reports from Kansas Geological Society have further 
      confirmed the thickness of the coals in the Bourbon Arch and quality of 
      gas which may be obtained. I feel the preliminary CBM gas reserves being 
      quoted in this press release has the potential of being increased 
      exponentially in the final completed reserve report, we recently 
      commissioned."
    
    
      A large petroleum company, with home offices in Houston, Texas, is doing 
      extensive drilling and development of their coal bed methane gas on 
      leases with similar types of CBM pay zones located ten to twenty miles 
      south from our areas of interest. A company like this, with very large 
      lease holdings, obviously has done extensive due diligence before 
      committing millions of dollars to develop the CBM gas in their leases in 
      southeast Kansas. Therefore, it is a reasonable projection that 
      development of very similar types of blanket coal bed formations will 
      also be as commercially viable for Hemi. Hemi has knowledge about other 
      blanket CBM formations that are within a few miles of our mature leases 
      and also adjacent to our leases in the Cherry Creek Trend that is our 
      next leases to be drilled.
    
    
      "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.