Hemi Energy (GM) (USOTC:HMGP)
Historical Stock Chart
From Jul 2019 to Jul 2024
Hemi Energy Group, Inc. (Pink sheets: HMGP) -- The results of the
successful drilling and completion of the Collins Hemi 1 well has
resulted in the natural gas cap in place with strong reservoir pressures
and additional multiple coal bed methane and oil/gas formations being
discovered in the Collins Hemi 1 well in Woodson County, Kansas. The
well head equipment needed to safely produce and control the gas
pressure in the Collins well has been installed. This new well continues
to show characteristics comparable to many Texas type oil and gas wells
that have good oil production with slower decline curves. This oil and
gas well is in the process of development to achieve maximum production
efficiency of both marketable reserves from this new field. Current
production is at a necessarily choked back rate in this process and is
less than 1/6 of the potential rate of production to an equivalent of 22
BOEs per day. The well's oil cut is increasing daily and is currently
producing more than 5 bbls of oil per day in this restricted rate and
still venting gas to control the pressure and determine the optimum
controlled volume of natural gas that will be produced for sale and to
safety produce the crude oil. There are several options being considered
for the natural gas pressure issue in order to insure long-term oil
production at a much higher rate based on industry experts' opinions and
experiences. There is clearly a very marketable quantity of natural gas
from this well. The options of selling the natural gas and gas
condensate is being evaluated by a company that specializes in this area
of expertise in Texas.
Hemi will be drilling more new wells on the Collins & our adjacent
leases as the geological information derived about the pay zones from
the discovery well clearly justify the new field's further development.
Hemi has a 100% working interest and an 80% net revenue interest in the
Collins lease as we also have more than 10,000 additional leased acres
in Kansas. The new oil and gas well on the Collins lease continues to
validate what the company has thought about the Cherry Creek and East
Owl Creek oil trends and confirms we have found one of the strongest
areas in this developing trend based on well logs. This well is
demonstrating the characteristics that are in new wells that have longer
lasting oil production at a higher rate because the very important
natural gas dissolved in water solution drive is clearly present in this
high pressure well in Kansas that are not present in mature wells.
President Keith A. Anderson issued this statement: "The Collins Hemi 1
well is exhibiting all the characteristic's of being a discovery well
located on the southern flanks of the Cherry Creek trend, which appears
to extend 4 to 10 miles north by northwest of this well. Additionally it
appears this well and our surrounding lease acreage maybe positioned on
an anticlinal fault trapping mechanism. We have discovered significant
amounts of natural gas present in this field and are currently
negotiating a market for this gas. Once we have established a market for
this gas, shareholders should expect to see a dramatic increase in the
oil and gas production over the choked back production numbers we
currently are producing. Upon establishing a market for this natural gas
we will aggressively continue drilling and development of Collins and
other undeveloped lease acreage we have located along this trend, in a
Southeast to a Northwestern pattern. I would like to acknowledge we have
taken more time than usual to complete this well, we have experienced
weather delays and with the discovery of additional Coal Bed methane and
conventional oil and gas pay-horizons present in this well. We chose the
side of caution and await lab and engineering analysis/results before
completing this well and putting it into production."
Hemi's very artificially low market cap is substantially below book
value and below tangible asset values based on conservative oil and gas
industry standards, especially when ongoing increasing undeveloped lease
acreage valuations in 3 states and North Dakota's leases are factored
in. All ongoing due diligence on leases' values in several states are
continuing to move forward. Hemi has been cash flow positive and
continues to be cash flow positive and is meeting all normal operating
expenses from oil production.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995
Statements in this press release relating to plans, strategies, economic
performance and trends, projections of results of specific activities or
investments, and other statements that are not descriptions of
historical facts may be forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Forward-looking information is inherently subject to risks and
uncertainties, and actual results could differ materially from those
currently anticipated due to a number of factors, which include, but are
not limited to, risk factors inherent in doing business. Forward-looking
statements may be identified by terms such as "may," "will," "should,"
"could," "expects," "plans," "intends," "anticipates," "believes,"
"estimates," "predicts," "forecasts," "potential," or "continue," or
similar terms or the negative of these terms. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance or achievements. The Company has no obligation to update
these forward-looking statements.
For additional information please go to http://hemienergy.com.