DALLAS, Nov. 12 /PRNewswire-FirstCall/ -- National Energy Group, Inc.
("NEGI" or the "Company") (OTC Bulletin Board: NEGI) today announced that
the Company's Board of Directors determined, in its best business judgment
after consideration of all strategic options available to the Company, that
it is in the best interests of the Company's shareholders to liquidate all
of the Company's assets and to dissolve the Company. The Company's Board of
Directors approved the dissolution of NEGI and the Plan of Complete
Dissolution and Liquidation (the "Plan"), subject to required shareholder
approval. The Company intends to hold a special meeting of the Company's
shareholders (the "Meeting") to seek approval of the Plan and the
dissolution of the Company. The Company will announce the timing of the
Meeting and set a record date for the shares entitled to vote at the
Meeting after the Securities and Exchange Commission has completed its
review of the related proxy materials that the Company intends to file in
the near future.
    Following shareholder approval of the Company's dissolution pursuant to
the Plan, the Board of Directors expects to carry out an orderly
disposition of the Company's assets and liabilities and then declare a cash
distribution to the Company's shareholders.
    Background and Reason for the Dissolution
    On November 21, 2006, NEGI completed the sale of its non-controlling
50% membership interest in NEG Holding LLC to NEG Oil & Gas, LLC, paid its
debt obligations in full, terminated its management agreements with NEG
Operating LLC, National Onshore LP and National Offshore LP and terminated
the employment of the majority of its employees. Subsequent to November 21,
2006, NEGI has no business operations and its principal assets consist of
cash and short-term investment balances.
    The Company's Board of Directors has considered at length the
appropriate application of the Company's remaining cash and short-term
investment balances, including but not limited to the possible acquisition
of producing oil and gas properties and related businesses and assets or
the equity in another entity which owns such properties, businesses and
assets. The Company's Board of Directors concluded that the distribution of
the Company's assets in a liquidation was in the best interests of the
Company's shareholders when compared to other alternatives.
    Forward Looking Statements
    This press release may contain projections and other forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended. Any such projections or statements reflect the
Company's current views with respect to future events and financial
performance. No assurances can be given, however, that these events will
occur or that such projections will be achieved and actual results could
differ materially from those projected. A discussion of important factors
that could cause actual results to differ materially from those projected
is included in the Company's periodic reports filed with the Securities and
Exchange Commission from time to time. SOURCE National Energy Group, Inc.


Web site: http://www.negx.com