LOS ANGELES, May 15, 2012 /PRNewswire/ -- Chancellor Group, Inc.  (OTCBB: CHAG), a Texas-based oil producer, announced today plans to set up an additional division within the company.

Chancellor Deputy Chairman, Dudley Muth, said today, "We are pleased to announce that at a recent meeting, the Board of Directors of Chancellor Group, Inc. (CHAG) elected to pursue opportunities in the commercial internet business space by establishing an Internet Division within CHAG. The Firm has been presented with some ideas for business within this new Division and has interviewed several people to chair this space, including an individual with internet experience in both the United States and the United Kingdom.

"This addition should not be viewed as the Firm leaving the oil and gas sector, but rather an opportunity to attempt to add value for CHAG's Shareholders. The Firm continues to operate four producing oil wells and one water disposal well in Gray County, Texas where CHAG holds a Texas Railroad Operator's license. The Firm also continues to explore expanding its oil and gas sector."

About Chancellor:

Chancellor Group Inc. engages in the acquisition, exploration and development of natural gas and oil properties as well as assessing business opportunities in other fields. It is based in Amarillo, Texas and Los Angeles, California.  For fuller information see Chancellor's filings at www.sec.gov

Safe Harbor Statement:

This Media release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of  Chancellor Group, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contact:

Thomas Nelson

Investor Relations

480-326-8577

shareholders@TheChancellorGroup.com

SOURCE Chancellor Group Inc.

Copyright 2012 PR Newswire

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