HOUSTON, April 7, 2006 (PRIMEZONE) -- Northamerican Energy Group Corporation. (Pink Sheets:NNYG) announced today that it has signed an agreement with Golden Gate Investors to make an investment in Northamerican Energy utilizing a structured purchase of the company's common stock.
"This large scale institutional investment, as it's being completed over the next couple of years, results in a commitment of a reliable source of capital for the foreseeable future and allows us to begin the next stage of development for the company. This agreement will allow Northamerican's management to increase our revenues by enabling us to move forward with additional workovers of our existing leases and wells, the acquisitions of new leases, and many of the other short and long term plans outlined in our newly inaugurated Investor Newsletter, now part of Northamerican Energy Groups website, www.northamericanenergy.net," said Jon Ginder, Northamerican's Chairman & CEO.
"This funding, and ongoing relationship with Golden Gate Capital, will greatly enhance Northamerican's ability to move forward and is an important step in helping Northamerican's management achieve our objectives, including our goal, and mission, to increase shareholder value through real growth," continued Gene Chew, Northamerican's President and COO.
Golden Gate Investors, in association with La Jolla Cove Investors, is a private investment company that provides financial resources to small cap publicly traded companies. Golden Gate Investors mission is to provide experience, and industry knowledge, to these companies and to add value by providing not only economic resources, but industry knowledge and ongoing hands-on acquisitions strategy and implementation.
Northamerican Energy Group Corporation has developed a proven growth strategy of identification, acquisition, and development of domestic hydrocarbon reserves. The Company will concentrate on acquiring prospects, which are, and have, proven oil and gas production which have been operating for many, 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
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.