HOUSTON, Aug. 15, 2005 (PRIMEZONE) -- Northamerican Energy Group Corp. (Pink Sheets:NNYG) announced today that it has signed a memorandum of understanding to acquire Pamco Operating Company.
The properties owned by Pamco consist of eight leases containing 52 currently inactive, shallow (800'-1,600') oil and gas wells located on approximately 600 acres of non-contiguous leases in Navarro County, Texas. These properties are in a mature, existing field known as the Corsicana Field, and these leases were developed and solely operated as a test field for a manufacture of down-hole, air-operated pumps until they became inactive. In addition, a number of potential offset well locations on the various leases have been identified for drilling additional wells.
"These leases and wells fit perfectly into Northamerican's strategy of purchasing viable, low-risk, primary-production properties in need of work over using numerous types of both new and proven oil field technology. We are extremely pleased that we are able to acquire this valuable piece of property," stated Jon Ginder, Northamerican Energy Group's CEO.
Northamerican Energy Group has developed a proven growth strategy of identification, acquisition and development of domestic hydrocarbon reserves. The Company will concentrate on acquiring prospects that have proven oil and gas production, and which have been operating for many years. By acquiring working interests in proven low-risk fields, the Company minimizes the risk by not "wildcatting or drilling dry-holes" and incurring any expense of building major infrastructure to get the product to market. Finally, The Company's low-cost operations and low-overhead structure allows the Company to maximize the income and revenue from each production lease.
Safe Harbor Provisions
Certain oral statements made by management from time to time and certain statements contained in press releases and periodic reports issued by Northamerican Energy Group Corp. (the "Company"), as well as those contained herein, that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934, and because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, including those in Management's Discussion and Analysis, are statements regarding the intent, belief or current expectations, estimates, or projections of the Company, its directors, or its officers about the Company and the industry in which it operates and are based on assumptions made by management. Forward-looking statements include, without limitation, statements regarding: (a) the Company's strategies regarding growth and business expansion, including future acquisitions; (b) the Company's financing plans; (c) trends affecting the Company's financial condition or results of operations; (d) the Company's ability to continue to control costs and to meet its liquidity and other financing needs; (e) the declaration and payment of dividends; and (f) the Company's ability to respond to changes in customer demand and regulations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur. When issued in this report, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are generally intended to identify forward-looking statements.
Important factors that could cause the actual results to differ materially from those in the forward-looking statements include among other items: (i) changes in the regulatory and general economic environment; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the Company's revenue and/or cost and expenses, such as increased competition, lack of qualified marketing, management or other personnel, and increased labor and inventory costs; (iv) changes in technology or customer requirements, which could render the Company's technologies noncompetitive or obsolete; (v) new product introductions, product sales mix, and the geographic mix of sales.
The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
The statements which are not historical facts contained in this advertisement are forward-looking statements that involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, governmental approval processes, the impact of competitive products or pricing, technological changes, and the effect of economic conditions.