Native American Energy Group, Inc. Announces Successful Enhancement and Completion of First 2 Oil Wells

Native American Energy Group, Inc. Announces Successful Enhancement and Completion of First 2 Oil Wells

Wednesday, August 23rd 2006

Native American Energy Group, Inc. , a publicly traded, independent oil & gas exploration, development, and production company is pleased to announce the successful enhancement, reactivation, and completion of its first two oil wells.

NAEG field operations have resulted in the successful revitalization of the Tribal 7-A and COX 7-1 wells located on the Fort Peck Indian Reservation which lies in the Williston Basin. It took 8 days to complete each well individually which included down-hole rework and enhancement procedures such as the administration of the Company’s proprietary chemical called Petro-Flo. The chemical treatment was reported to have increased the pressure by 6-fold in the producing zones. Both wells were producing significant amounts of gas after the treatments as well. During the testing period after the treatment on the 7-A, the company accumulated more than 200 barrels of high gravity oil of which a sample was picked up by Shell Trading Co. and another oil purchaser in the area. Both purchasers approved the oil for purchase and are currently drafting proposals for Native American Energy.

To view photos of these 2 wells, please visit the following links:

http://www.nativeamericanenergy.com/tribal7a.htm

http://www.nativeamericanenergy.com/cox71.htm

Both wells were completed on time due to the precise scheduling of all components of their operations and are currently in minimal production. Stable flow rates in terms of BOPD and additional data on comparative results can be expected to be reported within 3 to 4 weeks. After the chemical treatment, the initial flow rates tend to fluctuate in a wide range for the first couple of weeks before settling down to a steady flow. At that time, the Company will issue another report to its shareholders informing them of its results. The NAEG team anticipates a very positive result of their proprietary enhanced recovery methods as they have proven to be very successful in the past.

The NAEG long-term strategy of acquisition and development, and of enabling vast economic improvement to this region has been well-publicized among the various tribes and among other oil & gas operators in the area. Management believes many significant, additional acquisition opportunities will open up as we now have accomplished the onset of production as promised. Since Native American Energy Group specializes in locating and revitalizing shut-in and abandoned oil wells (of which there are many in this area), the Company’s now reinforced prospects for a successful future since last week’s start of production have attracted many more local landowners and officials from neighboring reservations to personally visit the NAEG offices on the Fort Peck Reservation. The company’s knowledge of the area, relationship with the locals and its personalized approach has been instrumental in the company’s success in its lease acquisition phase.

NAEG’s major policy concerns are to provide Montana’s Native American tribes and nations a basis for an immediate and lasting economic viability. Since January 2005, the Company has identified numerous shut-in oil wells located within the Williston Basin in Montana that NAEG management strongly believes can be enhanced through NAEG’s Enhanced Oil Recovery (EOR) capabilities, and will thereby establish a 10 to 20 year cash flow for the Company. Broadening the prospects even further, in the year to 2007 the company will be drilling a group of wells on the very prolific Bakken formation which according the U.S. Energy Department is the highest-producing onshore field found in the lower 48 states in the past 56 years. The company has already been approached by several oil companies interested in joint venturing with NAEG.

For more information, please visit: http://www.nativeamericanenergy.com.

Safe Harbor Statement: This News Release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities & Exchange Act of 1934, as amended, with respect to corporate objectives, projections, estimates, operations, acquisition and development of various interests and certain other matters. These statements are made under the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.

Source: Native American Energy Group, Inc.

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