Hemi Energy Group Issues North Dakota and Kansas Lease Update

FORT WORTH, Texas--(Business Wire)--
Hemi Energy Group, Inc. (Pink Sheets: HMGP) announces the new well
on the Collins lease in Woodson County, Kansas has been fraced.
Management believes this will be a good producing oil well based upon
drill cuttings and wells logs and other experts' opinions. We will
release a bbl count per day as soon as it is available, which should
be someday next week based on normal completion techniques. We have
100% working interest and 80% net revenue interest in the Collins
lease that is not mature and has had no oil production. Management
believes the important natural gas - water solution drive is present
in this well. Therefore longer production and slower decline curve
will be much better than wells that were drilled on mature leases that
have lost most of this drive. This well will have a much longer
lasting production at a higher rate than wells which have been drilled
on leases with mature wells in southeast Kansas. The new Weseloh well
is producing oil but needs some additional completion techniques
before we can determine its rate of production.

Hemi is in definitive document review for development of our very
highly valued leases in North Dakota. There are wells producing
multi-million dollar revenues per year per well on three sides of
these leases that have and are expected to continue to produce
millions in revenues for many years. Hemi also continues to be in
several other on-going negotiations about development of leases in two
other states.

Hemi's new oil well on the Weseloh lease has also identified the
same five coal bed layers as are in our mature leases and the Collins
lease. The new well's coal bed layers have very similar
characteristics to the coal beds that are found approximately five
miles away in our five mature leases with oil production. Therefore, a
logical conclusion is being confirmed that there is a continuous
blanket formation of very economically producible coal bed methane gas
underlying these two groups of leases in southeast Kansas. The well
logs of our new drilling is documenting that we have blanket CBM pay
zones in the geological formations on these leases in southeast
Kansas. When the new independent Kansas oil and gas reserve report is
completed it will greatly increase the proven and probable oil
reserves. This new report will include, the five mature leases, the
three newly drilled leases, and for the first time the very
substantial CBM gas reserves on all these leases in Kansas.

Hemi's very artificially low market cap is substantially book
value based on conservative oil and gas industry standards, especially
when ongoing lease negotiations and North Dakota's leases are factored
in. Since stated number of shares outstanding in the April 17th press
release, there were a little more than three million shares issued
that are restricted and a little over one million shares were issued
free-trading in total. Hemi has been cash flow positive for all of
2008 and continues to be cash flow positive from oil production. Hemi
has more than sufficient funds on hand to complete the three new wells
and all the supplies and equipment necessary for oil production from
these wells. In addition to its budgeted funds, Hemi is also tanking
oil as the price has risen the past several months.

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.

"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.

Hemi Energy Group, Inc.
John Kelly, 817-566-0351

Copyright Business Wire 2008