WINSTON-SALEM, NC--(Marketwire - September 28, 2007) - Mammoth Energy Group, Inc. (PINKSHEETS: MMTE) reports that oil prices rose above $83 a barrel today as the weak dollar drove investors to the market and concerns remained about a decline in crude inventories at a key Oklahoma terminal.
Oil prices have risen to all-time highs in recent weeks, in part because the standoff between the West and Iran over its nuclear program has raised fears of a disruption in supplies from the Middle East.
''This is fueling speculation that a supply shortage could be seen mid-continent in the United States," said PVM Oil Association in Vienna.
"In my opinion, this is a prime example of why the United States should curb its dependency on foreign oil. There are plenty of domestic resources that can be tapped to provide necessary buildups of crude inventories," said Joe V. Overcash, CEO of Mammoth Energy Group, Inc.
Mammoth Energy Group, Inc. announced Wednesday that it has completed the acquisition of a fifteen percent working interest in 17 producing wells in Oklahoma.
Mammoth, through its newly created wholly owned subsidiary, United Gas OK, Inc. has acquired the working interest for shares of restricted stock valued at $225,000.00 based on partially completed engineering of the production. "This acquisition gives us needed immediate cash flow to fund our exploration and development strategies in Oklahoma," stated Joe Overcash, CEO.
The working interests are in gas wells in a field of approximately 1,045 acres. Mammoth expects more wells to be drilled on the acreage, possibly up to a total of 25 wells. The wells are currently cash flowing positive and a full accounting of the production and engineering of the wells is anticipated by the end of October.
About Mammoth Energy Group, Inc.
Mammoth, through its wholly owned subsidiary, United Gas OK, Inc. is focused on developing shallow gas projects in northeastern Oklahoma due to the low risk, blanket characteristics in the area that make it possible to drill and produce a well nearly every time. It is currently focused on developing its Noble and Kay County properties in Oklahoma which covers approximately 1,400 acres.
Cautionary note This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.