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Gold/Mining/Energy : NNYR - North American Energy Group -- Ignore unavailable to you. Want to Upgrade?

To: jmhollen who wrote (46)	6/1/2006 10:39:47 AM
From: oldno7	Respond to of 65

From North Amercan Energy Newsletter: Acquisition of New Leases & Wells: With the cooperation, and in coordination with, an associated company, Northamerican Energy has entered into memorandum of understanding to acquire the deep rights in an 8,000 acre concession in the Uintah Basin in Utah, which upon completion of some legal proceedings to clear title to the leases by the associated company will then be acquired by Northamerican Energy. It is anticipated these proceedings will be completed within 60 days. Deep test wells were drilled on these leases by one of the majors in the early 70’s which indicated gas shows but they did not proceed with the development at that time due to lack of a market, and infrastructure to reach market. Since that time another major oil company, who along with other major production companies, own and operate hundreds of wells in the shallow zones above these deep rights, have installed gas gathering and transmission facilities on these leases which will enable Northamerican Energy to transport and market gas for the wells Northamerican intends to drill. A 2004 U.S. Geological Survey calculates that the Uintah Basin contains 14-26 trillion cubic feet (TCF) of non-associated undiscovered natural gas. As previously announced we are continuing to explore other leases, and their wells in Texas, wells that were plugged and abandoned and after completing our due diligence on each of the fields and wells plan to acquire these leases and rework wells that were originally drilled into some of the deeper formations by majors and plugged after they either didn’t meet the major oil companies criteria, or in some cases were simply plugged after being fully produced in the deeper zones. There is a lot of oil in the Uintah Basin. It has been quiet for some time now but is gaining more interest again. I live about 2 hours from there and land prices and sales have been climbing in the area for a few years now. I hope this all pans out so I will have a chance to visit their operation. Steve