Since its formation, NAEG has primarily been involved in the acquisition and management of Native American land and fee land acreage and the exploration for, and development of, oil and natural gas properties which management believes have potential for improved production rates and resulting income through our recompletion and work over process or through the drilling of new laterals.
On August 15, 2005, Native American Energy Group, Inc. received the approval of its Nationwide Oil & Gas Bond by the United States Department of the Interior (U.S. DOI). Being bonded with the U.S. DOI means that Native American Energy Group is authorized to acquire, operate, develop and produce oil and gas on all 564 federally recognized tribal reservations throughout the United States. In addition, on November 9, 2005, the Company announced the approval of its Oil & Gas Blanket Bond by the Board of Oil & Gas Conservation at the Montana Department of Natural Resources which allows NAEG to drill and/or acquire an unlimited amount of wells for oil, gas, or stratigraphic purposes in and upon all land situated within the State of Montana.
A U.S. Geological Survey assessment, released April 10, 2008, indicated that North Dakota and Montana have an estimated 3.0 to 4.3 billion barrels of undiscovered, technically recoverable oil in the area known as the Bakken Formation. It is the largest “continuous” oil accumulation ever assessed by the USGS.
NAEG’s field acquisition team has acquired oil & gas leases, since January 2005, on and around the Fort Peck Indian Reservation, resulting in the Company’s portfolio of historically producing oil wells in the Montana part of the Williston Basin. Such leases include historically producing oil & gas wells that were shut-in or abandoned since the 1950’s by major oil companies such as Shell, Chevron, Devon and Continental Resources. The wells were abandoned due to depressurization, paraffin, production falling below commercial levels at that time, termination of previous oil & gas leases by the tribal governments due to improper development and various economical reasons, and most commonly, declining oil prices. The Company has acquired approximately 3,000 acres in Montana, which includes acreage over the Bakken formation.
NAEG’s cutting-edge technology (PEP Program) can take abandoned oil wells and restore them to commercial production. Additionally, we have conducted engineering studies on a program to drill laterals from existing well-bores or offset locations that we have already leased. The purpose of these laterals is to provide increased access to the formation in order to increase the flow rate and to recover additional oil and gas reserves not recoverable from the existing vertical wells.
The Company pursues any oil property that has been selected through its screening process. In August 2006, the Company consummated an Oil Sale and Purchase Agreement with Shell Trading U.S. Company (SHELL).
NAEG owns its own Workover and Well Servicing Rig, which is used to re-work, service and drill shallow wells. The Company’s standby field team includes fabricators, welders, machinists, heavy equipment operators, derrickmen, floor hands, roughnecks and rig operators, all of which are independent contractors. In addition, the Company’s team has extensive leasing experience on both Native American and non-Native American lands. All of the foregoing facilitates leasing activities internally.
Future projects include expansion into the exploration and development of new properties, which shall include areas such as the very prolific Bakken Formation. (The U.S Energy Department has called the Bakken Formation the highest-producing onshore field found in the lower 48 states in the past 56 years.) Our Company is still acquiring additional Bakken acreage and expects to joint venture with a potential drilling company for development of Bakken wells on the Company’s leases.
Please revisit this page for updated information on current developments & Company projects.