DALLAS, Nov. 13 /PRNewswire-FirstCall/ -- National Energy Group, Inc.
(OTC Bulletin Board: NEGI) today announced results for the three and nine
month periods ended September 30, 2007.
    Results of Operations
    The Company reported total revenues of $0.6 million for the three month
period ended September 30, 2007 compared to $19.6 million for the three
month period ended September 30, 2006. Revenues for the nine month period
ended September 30, 2007 were $1.9 million compared to $56.0 million in the
same period in 2006. Net income was $10,201 for the three month period
ended September 30, 2007 compared to net income of $16.7 million for the
comparable period in 2006. Net loss for the nine month period ended
September 30, 2007 was $0.3 million as compared to net income of $29.7
million for the comparable period in 2006.
    On November 21 2006, the Company 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, the Company has no business operations and
its principal assets consist of cash and short-term investment balances,
which aggregated $48.0 million at September 30, 2007.
    The Company's results of operations for the three and nine month
periods ended September 30, 2007 are more fully described in the unaudited
financial statements and the accompanying notes and other information
included in the Company's Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 13, 2007. Investors are
urged to review the Form 10-Q and the Company's Annual Report Form 10-K for
the year ending December 31, 2006 filed with the SEC on March 6, 2007,
including the risk factors applicable to the Company.
    Board of Directors Decision to Liquidate and Dissolve Company
    On November 12, 2007, the Company announced that the Company's Board of
Directors has 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 the Company and the Plan of Complete
Dissolution and Liquidation, 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.
    Forward Looking Statements
    This press release includes "forward-looking statements" within the
meaning of various provisions of the Securities Act of 1933, as amended,
and the Securities Exchange Act of 1934, as amended. The words
"anticipate," "expect," "estimate," "predict," "believe," and similar
expressions and variations thereof are intended to identify forward-looking
statements. All statements, other than statements of historical facts,
included in this press release that address activities, events, or
developments that we expect or anticipate will or may occur in the future
relating to the operations of National Energy Group, Inc., our business
strategies, goals, plans, references to future success, references to
intentions as to future matters and other such matters are forward-looking
statements and include statements regarding the interest, belief or current
expectations of our management, directors, or officers regarding such
matters. These statements are based on certain assumptions and analyses
made by us in light of our experience and our perception of historical
trends, current conditions and expected future developments as well as
other factors we believe are appropriate under the circumstances. However,
whether actual results and developments will conform with our expectations
and predictions is subject to a number of risks and uncertainties,
including the risk factors (see Item 1A--Risk Factors) discussed in our
Annual Report on Form 10-K for the year ended December 31, 2006, the
opportunities (or lack thereof) that may be presented to and pursued by us,
competitive actions by other companies, changes in laws or regulations, and
other factors, many of which are beyond our control. Consequently, all of
the forward-looking statements made in this document are qualified by these
cautionary statements and there can be no assurance that the actual results
or developments anticipated will be realized or, even if substantially
realized, that they will have the expected consequences to or effects on
our Company or our business or operations. Such statements are not
guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements.
We undertake no obligation to publicly update or revise any forward-looking
statements.

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