Exhibit 99.1

CHANCELLOR'S $2,050,000 PROPERTY SALE

PAMPA , TEXAS , October 20, 2011 - Texas-based oil and gas producer,  Chancellor
Group, Inc. (OTCBB: CHAG), announced today that Gryphon Production Company, LLC,
its wholly owned  subsidiary,  has entered  into a definitive  agreement to sell
substantially all of its assets,  including seven of its nine oil and gas leases
plus  yard,  building  and  equipment,  to LCB  Resources  for  $2,050,000.  The
transaction is subject to customary closing  conditions and is expected to close
in the fourth quarter of 2011, although delays could occur.

Following  consummation  of the  transaction,  Gryphon will retain two producing
leases in Gray County,  Texas and  continue as an oil and gas  operator  under a
license from the Texas Railroad Commission.

Maxwell Grant, Chairman and Chief Executive Officer of Chancellor, said that the
four  producing  oil wells and one water  disposal well on the two retained Gray
County leases would provide the company with steady  production  and allow it to
continue its oil and gas operator's license.

The  proceeds  from the asset  sale will be used to provide  working  capital to
Gryphon  and for  future  corporate  purposes  including,  but not  limited  to,
possible acquisitions and other corporate programs and purposes that have yet to
be identified.

Mr. Grant  commented,  "We will begin working with a top American  geologist and
experienced  landman to help us identify oil and gas  opportunities  in oil rich
states.  In  particular,  we  will  be  looking  for  under-valued  assets  with
sufficient  reserves to provide  upside." "We continue to have no long-term debt
and look forward to this exciting new phase of our business." Mr. Grant said.

About Chancellor:

Chancellor Group Inc. engages in the acquisition, exploration and development of
oil and natural gas  properties.  It is based in Pampa,  Texas.  For  additional
information   please  see  Chancellor's   filings  at  www.sec.gov  Safe  Harbor
Statement:   This  Press  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:

Pamela McDowell
806-688-9693
shareholders@TheChancellorGroup.com