CHAG.PK - CHAG Chancellor Acquires Oil and Natural Gas Producing Properties

[Da Chief]

Acquisition of Caldwell Oil and Gas Assets

On April 16, 2007, we closed the acquisition of assets from Caldwell, consisting of 48 mineral leases with 631 wells, of which approximately 100 are producing wells and 531 inactive well bores equipped with necessary production equipment, and related operating facilities and equipment including an office warehouse facility, ten pickup trucks, three pulling rigs, a backhoe, a winch and a water truck. The purchase price for the mineral leases was $5,000,000, and for the equipment $291,000.

The oil and natural gas leases purchased are on approximately 8,000 acres in Gray and Carson Counties, Texas, with a well spacing of 10 acres, and are in the Panhandle Field, discovered in 1920. This field produces from Pennsylvanian and Permian age granite wash and brown dolomite. The field covers 200,000 acres in eight Texas counties.

Our estimated proved developed producing reserves are 750,000 barrels oil equivalent. The current production from our producing wells is approximately 3,000 barrels per month and approximately 4,000 mcf of natural gas per month. Our wells produce 40 gravity West Texas Intermediate crude oil and 1,600 - 2,400 btu/scf natural gas.

Our primary focus is will be to operate our properties and to restore 10-20 wells per month to production. A typical well restoration we estimate will cost $2,500 to $5,000. To supplement our growth, we may also consider mergers and acquisitions, although we have no acquisitions contemplated or under discussion at this time.

Appointment of Officers and Election of Directors

As authorized at a previous meeting of the Board of Directors of the Company, effective April 16, 2007, Mr. Robert Gordon resigned as our Chief Executive Officer and Mr. Bradley W. Fischer was appointed as our President and Chief Executive Officer and was elected a director of the Company to fill a vacancy on the Board. At this Board meeting, effective also April 16, 2007, Alan M. Wright was appointed as our Executive Vice President, Chief Financial Officer, Treasurer and Secretary, and Peter Harris was elected as a director to fill a vacancy on the Board of Directors.

Mr. Fischer, age 60, received a B.S.M.E. degree from the University of Nebraska in 1972, and completed the Program for Management Development from Harvard Graduate School of Business in 1991. Mr. Fischer is a registered professional engineer and has been a petroleum consultant since 2002, providing strategic evaluation services to independent oil companies considering international investment programs, evaluating domestic assets for acquisition and arranging financial backing for start-up companies in the U.S. From 1997 to 2002, he was President and Chief Executive Officer of CMS Oil and Gas Company. Prior thereto, Mr. Fischer held positions with Ashland Exploration, Inc., his final position being Senior Vice President (International and Gulf of Mexico), and with Mitchell Energy Corporation, Tenneco Oil Company and Texaco, Inc.

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Mr. Wright, age 62, earned his Bachelor of Science degree in Economics from Cornell University in 1969. He has also completed post-graduate studies in Accounting at the University of West Florida and Stanford University's Executive Management Program in 1982. From 2002 to 2005, he was Senior Vice President - Administrative and Financial Operations and Chief Financial Officer, at Aastrom Biosciences, and served as a director of that company from 2000 to 2005. Prior thereto, from 1991 to 2002, he was Executive Vice President and Chief Financial and Administrative Officer of CMS Energy Corporation and its principal subsidiary, Consumer's Energy.

Peter Harris, age 54, has a Bachelor of Business Administration degree from the Royal Melbourne Institute of Technology University and is completing his Master's of Business Administration at the same university. He is Executive Director of the Uranium Club of Australia, a member of the Advertising Federation of Australia and has been a director of Recycle (Australia) since 1996. He is currently overseeing the planning and implementation of exploration for metals under an exploration license issued by Minerals Tasmania, the minerals arm of the Tasmanian Government in Australia, and is currently in charge of strategy and development for a Melbourne-based investor relations firm specializing in publicly-traded oil and gas companies.

[Da Chief]

Our New CEO Looks to have some serious experience...

DEARBORN, Mich., August 1, 1997
CMS Energy Corporation's (NYSE:CMS) oil and gas exploration and production unit, CMS NOMECO Oil & Gas Co., today announced the election of Robert C. Olson as vice president of exploration and Bradley W. Fischer as vice president of operations for the Western Hemisphere. The announcement was made by Gordon L. Wright, president and chief executive officer of CMS NOMECO, to whom both Mr. Olson and Mr. Fischer will report.

Mr. Olson, 54, will be responsible for managing CMS NOMECO's exploration activities around the world. A 27-year veteran of the oil industry, Mr. Olson held increasingly responsible exploration management responsibilities for ARCO from 1974 to 1996. He most recently was exploration manager of Vanco Energy Company in Houston. Mr. Olson earned a master of science degree in geology in 1970 and a bachelor of science degree in geology, both from San Jose State University, in 1966.

Mr. Fischer, 50, will be responsible for managing all of CMS NOMECO's operations in the United States and Latin America. He was previously senior vice president of Blazer Energy, formerly Ashland Exploration, and held a progression of operations management responsibilities for Ashland since 1987. A 20-year veteran of the oil industry, Mr. Fischer earned a bachelor of science degree in mechanical engineering from the University of Nebraska in 1972.

CMS NOMECO Oil & Gas Co. is among America's 30 largest independent oil and gas companies in production and reserves. It is engaged in exploration and/or production in twelve states and internationally in seven countries. In 1996 the Company's operating income was $41 million, on $153 million of revenues. At year-end, proven reserves were 123 million net equivalent barrels

CMS Energy Corporation is a $5 billion (sales), $9 billion (asset) international energy company operating throughout the U.S. and in 15 foreign countries with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines and storage; oil and gas exploration and production; and energy marketing, services and trading. CMS Energy Corporation's principal subsidiary is Consumers Energy, Michigan's largest utility and America's fourth largest combination gas and electric utility.

[Da Chief]

DEARBORN, Mich., July 27, 1998
CMS Energy Corporation's (NYSE:CMS) oil and gas exploration and production unit, CMS NOMECO Oil & Gas Co., today announced Bradley W. Fischer has been promoted to the position of president and chief executive officer, effective August 1. He succeeds Gordon L. Wright, who has elected early retirement.
Mr. Fischer is a 26-year oil industry veteran who joined CMS NOMECO in August 1997 following executive management and operations assignments with Ashland Exploration, Inc., Mitchell Energy Corporation, Tenneco Oil Co. and Texaco. "Brad Fischer has both domestic and international experience, having been responsible for Ashland's Nigerian operations and government relations. His strong business sense, leadership and vision assure that CMS NOMECO's future is in good hands," said CMS Energy President Victor J. Fryling. Mr. Fischer, 51, was previously CMS NOMECO's vice president of operations for the Western Hemisphere, with responsibility for managing all of the Company's operations in the United States and Latin America.

Mr. Fischer earned a Bachelor of Science degree in mechanical engineering from the University of Nebraska in 1972. He obtained a program management development certificate from Harvard Graduate School of Business in 1991.

Mr. Wright, 55, has been CMS NOMECO's president and chief executive officer since 1995, and held a series of increasingly responsible assignments for NOMECO and its affiliates for the previous 25 years. He will continue after August 1 as a member of CMS NOMECO's Board of Directors. CMS NOMECO Oil & Gas Co. is among America's 30 largest independent oil and gas companies in production and reserves. It is engaged in exploration and/or production in eight states and internationally in eight countries. In 1997, operating revenues were a record $168.2 million and pre-tax income was $26.2 million. At year-end 1997, proven reserves were 152 million net equivalent barrels.

CMS Energy Corporation is a $5 billion (sales), $10 billion (assets) international energy company operating throughout the U.S. and in 18 countries around the world with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines and storage; oil and gas exploration and production; and energy marketing, services and trading. CMS Energy Corporation's principal subsidiary is Consumers Energy, Michigan's largest utility and America's fourth largest combination gas and electric utility.

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Mr. Fischer, age 60, received a B.S.M.E. degree from the University of Nebraska in 1972, and completed the Program for Management Development from Harvard Graduate School of Business in 1991. Mr. Fischer is a registered professional engineer and has been a petroleum consultant since 2002, providing strategic evaluation services to independent oil companies considering international investment programs, evaluating domestic assets for acquisition and arranging financial backing for start-up companies in the U.S. From 1997 to 2002, he was President and Chief Executive Officer of CMS Oil and Gas Company. Prior thereto, Mr. Fischer held positions with Ashland Exploration, Inc., his final position being Senior Vice President (International and Gulf of Mexico), and with Mitchell Energy Corporation, Tenneco Oil Company and Texaco, Inc.

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Mr. Wright, age 62, earned his Bachelor of Science degree in Economics from Cornell University in 1969. He has also completed post-graduate studies in Accounting at the University of West Florida and Stanford University's Executive Management Program in 1982. From 2002 to 2005, he was Senior Vice President - Administrative and Financial Operations and Chief Financial Officer, at Aastrom Biosciences, and served as a director of that company from 2000 to 2005. Prior thereto, from 1991 to 2002, he was Executive Vice President and Chief Financial and Administrative Officer of CMS Energy Corporation and its principal subsidiary, Consumer's Energy.

[Da Chief]

Tuesday, April 24 2007 1:51 PM, GMT-05:00

Chancellor Acquires Producing Properties

PR Newswire "US Press Releases "

PAMPA, Texas, April 24 /PRNewswire/ -- Chancellor Group Inc. announced today that it has acquired producing oil and gas properties in the Texas Panhandle. The 37 oil and 11 gas leases comprise 631 wells, about 100 of which are currently producing on approximately 8,000 acres in Gray and Carson counties, Texas.

Chancellor made the purchase through its two recently formed wholly-owned subsidiaries -- Gryphon Production Company and Gryphon Field Services. Both are Texas LLC's.

The acquisition includes a 16 acre office/warehouse facility with offices and oilfield equipment including 2 fully operational pulling rigs, 10 pumper and rig hand trucks, backhoe, winch truck, and water truck.

Current production is about 3,000 barrels of oil and 4,000 mcf of natural gas a month. The wells produce 40 gravity light, sweet crude oil and 1,500- 2,000 btu/scf natural gas.

Chancellor also announced today the appointment of Bradley W. Fischer as President, CEO, and a director of the corporation following the resignation of former CEO, Robert Gordon. Mr. Gordon remains on the board of directors. Mr. Fischer will also serve as President and CEO of Chancellor's two Gryphon subsidiaries. Gryphon Production Company, LLC will be the official operator of the new companies.

A Registered Petroleum Engineer, Mr. Fischer brings over 30 years of upstream experience in both domestic and international business. He was formerly President and CEO of CMS Oil and Gas Company and a Senior VP of Ashland Exploration. He also held positions with Mitchell Energy Corporation, Tenneco Oil Company, and Texaco Inc.

Mr. Alan M. Wright takes over as Executive Vice-President and Chief Financial Officer of Chancellor and the Gryphon companies. He has a B. S. from Cornell and was formerly EVP and CFO and Administration Officer on CMS Energy Corp.

Mr. Fischer said today, from the company's headquarters in Pampa, Texas that his initial focus would be well restoration. "We hope to restore to production in the vicinity of 10-20 wells a month."

The acquisition is being financed wholly by debt.

This document contains forward-looking statements, including without limitation, statements concerning potential well restoration, oil and gas production, and oil quality, which involve certain risks and uncertainties. The forward-looking statements are also identified through use of the words "potential," "currently" "about" "approximately" "hope," and other words of similar meaning. Actual results may differ significantly from the expectations contained in the forward-looking statements. These and other significant factors are discussed in greater detail in Chancellor's Report on Form 8-K on April 23, 2007 and other filings with the Securities and Exchange Commission.

Contact: Al Wright
806-688-9697

SOURCE Chancellor Group Inc.

[Da Chief]

Posted by: sonslong
In reply to: None Date:4/25/2007 2:39:16 PM
Post #of 755

Just got off the phone with Al Wright and after talking with Al it's time to buy more shares, LOL! I'll start by saying Al came out of retirement because after speaking and seeing the opportunity that Bradley W. Fischer brought to him he couldn't resist. Al's background is with large companies and he never thought he would become involved with a start up company as he calls CHAG, he says the opportunity is unreal and he is very excited to be a part of it. OK on to the specifics:

Atleast 50% of the O/S's is owned my insiders.

Activety on the stock will put the stock back on the pinksheets according to Al. He wasn't sure how long it would take to get back on the OTC but he and Fischer have been discussing whether they should go to the NASDAQ small caps or the AMEX. He stated that they are focusing on the 10Q that is due on May 15th and this will show the 100 operational wells and revenues from these wells. Then he will focus on the OTC and moving to a higher exchange. He honestly believes they will be on the NASDAQ SC or AMEX which ever they decide (he is leaning towards NAZ) THIS YEAR!!!!!!!

I asked what made you come out of retirement to take this deal on and he said it was to good to pass up!!

Guys I think we found a real good one here!! Many good things to come!

[Da Chief]

Our CEO and CFO just filed Form 3's.

Good news.

Bradley W Fischer, CEO - owns 3,037,751 common shares
Alan M Wright, CFO - owns 200,000 common shares

DD on the insider, Robert William Gordon.

Robert William Gordon, Director (Chancellor) - Now owns 5,484,800 shares, up from 4,584,800.

Robert Gordon has been on the Board of Directors of the W3 Group.
http://www.zoominfo.com/Search/Perso...onID=486627920


"Mr. Robert Gordon, Chief Executive Officer and Chief Financial Officer, is a former senior editor with Mr. Rupert Murdoch's News Corporation. He owns his own investor relations firm in Melbourne, Australia, specializing in the oil and gas industry."

The former CEO is adding to his position... i think we just might be on to something here!!!!!!!!

http://www.pinksheets.com/quote/prin...5C&symbol=CHAG

[Da Chief]

Anyone jump in this yet?

[bayvillian516]

been in since may! hoorah
im surprised I didnt spot this thread earlier

soon we will dine like kings!

[Da Chief]

Originally Posted by bayvillian516

been in since may! hoorah
im surprised I didnt spot this thread earlier

soon we will dine like kings!

Yes Sir we will. The 10Q is supposed to be done by the 3-4 August. Then uplisting right after! BOOYAH!

[Da Chief]

Oil Rises Above $75 in N.Y. on Forecast for Increase in Demand

By Mark Shenk

July 17 (Bloomberg) -- Crude oil rose above $75 a barrel in New York for the first time in more than 11 months on expectations that U.S. demand will rise as refiners bolster gasoline production.

Valero Corp., Exxon Mobil Corp. and BP Plc, three of the four biggest U.S. refiners, started up units over the past week. A government report tomorrow may show that U.S. oil supplies fell last week as refineries increased production. Iran, OPEC's second-biggest producer, said there was no need for the group to hold an emergency meeting.

``The up-tick in refining activity and the global supply picture are leading to greater concern in the market,'' said John Kilduff, vice president of risk management at Man Financial Inc. in New York. ``We have yet to get through the hurricane season and there are a number of problems in the system.''

Crude oil for August delivery rose $1.06, or 1.4 percent, to $75.21 a barrel at 10:16 a.m. on the New York Mercantile Exchange. Futures reached $75.24, the highest intraday price since Aug. 10, 2006. Prices are up 23 percent this year.

Brent crude oil for September settlement increased 26 cents, or 0.3 percent, to $76.55 barrel on the London-based ICE Futures exchange. The August contract touched $78.40 yesterday, the highest intraday price since Aug. 9 and close to the record $78.64 reached Aug. 7. The August contract expired yesterday.

Crude-oil stockpiles slipped 700,000 barrels in the week ended July 13, according to the median of responses by 17 analysts surveyed by Bloomberg News before the Energy Department's supply report. The report is expected to show that refineries operated at 90.4 percent of capacity, up 0.2 percentage point from the prior week.

`No Shortage'

``There is no shortage in the world markets of oil and there is no need for OPEC to hold an emergency meeting,'' Iranian Oil Minister Kazem Vaziri-Hamaneh told the country's oil ministry press agency Shana today.

The Organization of Petroleum Exporting Countries, which produces about 40 percent of the world's oil, decided to remove 1.7 million barrels a day from its production late last year to keep prices above $60 a barrel. OPEC ministers are scheduled to hold their next conference on Sept. 11 in Vienna.

OPEC doesn't need to increase output because the world market is well-supplied, Shokri Ghanem, the head of Libya's state-run National Oil Corp., said today on the company's Web site. ``Right now, what's causing prices to increase are technical and political reasons, and speculation, not a shortage of supply.''

Speculators, such as hedge funds, increased their net-long position in the U.S. oil market, the difference between the number of contracts held to buy and sell oil, by 67 percent in the two weeks ended July 10, according to government data.