NAGP Commences Oil Production in Montana; Zacks Investment Research Initiates Analyst Coverage on the Company
October 04 2012 - 9:00AM
Marketwired
Native American Energy Group, Inc. (OTCQB:
NAGP) is pleased to announce that it has commenced oil production
on two wells in the Williston Basin in northeastern Montana. The
company also announced that Zacks Investment Research has initiated
analyst coverage of NAGP with an "Outperform" rating.
Production is now underway at the Wright 5-35 and Beery 2-24
wells. During August and September, the company completed
electrical system repairs and upgrades to surface equipment and
subsurface flow-lines. The Wright well initially flowed
approximately 62 barrels of oil in the first 18 hours and settled
at 53 barrels of oil per day. The well will be pumped down over the
next few days and the oil cut is expected to increase to
approximately 50% based on previous swab testing and production
results. The Beery well is currently flowing between 8 to 10
barrels of oil per day with no water. The well is currently
producing with a flowing tubing pressure of 47 psi using an
adjustable choke. Over the next several days, the company will be
adjusting the choke to achieve continuous production on the well.
As the company has flowed this well from time to time in the past
several years, production from flowing operations has varied
between 8 barrels of oil per day to as much as 35 barrels. Due to
the enhanced oil recovery operations on the Beery well and the
resulting increase in pressure and overall fluid output, the
company expects a higher flow rate once the choke is adjusted. The
company will issue a production update in the near future to keep
shareholders informed of the progress.
In addition to the two wells now in production, the company
currently owns a 100% working interest in three oil wells in
Montana which include the Beery 22-24, Cox 7-1 and the Sandvick
1-11. Subject to obtaining adequate financing, the company intends
to fully complete both Beery wells during the remainder of 2012 and
the Cox and Sandvick wells by the summer of 2013. The Company will
announce the results of these efforts as they occur which include
procurement of financing.
Chief Executive Officer Joseph D'Arrigo stated, "We are pleased
to have established commercial production on the Wright and Beery
wells and we look forward to making this transition to a revenue
generating company in this fourth quarter of 2012."
The company also announced today that Zacks Investment Research
has initiated coverage of the company. Zacks, which provides
independent investment research to individual and institutional
investors, has just released a comprehensive report that describes
Native American Energy Group's advanced stage oil & gas
development program in the Williston Basin and growth strategy in
detail, along with its recommendations. This report includes
information about the Company's business model including future
planned acquisitions, and oil production, as well as other
important company-related information.
The report initiates coverage on the Company with a 6-month
price target of $1.50 per share and is available on Native American
Energy Group's website at: http://www.nativeamericanenergy.com/documents/NAGP.pdf.
About Zacks Small Cap Research Founded in
1978 in Chicago, Zacks Investment Research is one of the largest
independent investment research and consulting firms in the United
States. The company provides individual and institutional investors
with analytical tools and financial information necessary to the
success of their investment process. Zacks models continually
process stock reports issued by 3,000 analysts from 150 brokerage
firms.
About Native American Energy Group, Inc.
Further information on the company can be accessed on the web at
the following links: www.nativeamericanenergy.com, www.facebook.com/nativeamericanenergy and www.youtube.com/nativeamericanenergy or via at email
NAGP@hanoverelite.com.
Forward-Looking Information This release,
as well as media publications and videos accessible on the NAGP's
website and social media pages such as YouTube, Facebook or
Twitter, include "forward-looking statements" as defined by the
Securities and Exchange Commission ("SEC"). These forward-looking
statements represent the Company's present expectations or beliefs
concerning future events. The Company cautions that such statements
are necessarily based on certain assumptions which are subject to
risks and uncertainties, including, but not limited to, the timing
and extent of changes in commodity prices for oil and gas,
drilling, development and operating risks, counterparty risk,
competition, environmental risks, litigation uncertainties, the
availability of drilling rigs, workover rigs and other support
services, legislative and/or judicial decisions and other
government or Tribal regulations which could cause actual results
to differ materially from those indicated herein. Further
information on our business, including the risks inherent therein,
is included in our filings with the SEC.
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FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Hanover|Elite: Dodi Handy or Kathy Addison (407) 585-1080 Email
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