Hemi Energy (GM) (USOTC:HMGP)
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From Sep 2019 to Sep 2024
Hemi Energy Group, Inc. (Pink Sheets: HMGP) is pleased to announce
exceptional results from the drilling and completion of the Collins Hemi
1 well.
President and CEO Keith A. Anderson is quoted as saying, "During
drilling of this well I felt this was going to be an exceptionally
strong well as the drill cutting were bleeding oil from the samples."
Mr. Anderson continued, "The open hole log suite confirmed a Squirrel
payzone that we are producing is about 13 feet thick and with top 10
feet clean sands with excellent porosity and good resistivity showing
through that interval with oil saturations of 55% or greater. This was
the main reason we waited so long until the weather and ground
conditions cleared so that we would not have accessibility issues with
this well, which is comparable to many Texas type oil and gas wells. The
well is currently flowing natural gas, gas condensate and oil and is not
being pumped yet. At one point we were venting significant volume of
natural gas, potentially valued over $ 5,000 per day in management's
opinion. In addition to the multiple payzones referred to in previous
press releases, we also have discovered a yet-to-be-named 12-feet-thick
payzone at approximately 600 feet deep in this well, which also
contained exceptional saturations of oil. The oil well on the Collins
lease has 4 to 5 times the pounds per square inch (PSI) of an average
shallow oil well in southeast Kansas that generally has less than 500
PSI borehole pressure. We have 100% working interest and 80% net revenue
interest in the Collins lease that is not considered a mature field and
has had no prior oil production."
The Company has confirmed results that very important natural gas
dissolved in water solution drive is present in this well. Therefore
longer production and a slower decline curve will be much better than
wells that were drilled on our mature leases that have lost most of this
drive. This well will have a much longer lasting production at a higher
rate because of this presence of this drive per the experience of
service experts in Kansas. The current well results indicate we have
found one of the strongest areas in this developing trend. With the
natural gas cap in place, excessively strong reservoir pressure and very
good oil shows in the formation.
Due to the results of the Hemi Collins 1 well and quality of the
formation, the Company will focus on the leases it has in the immediate
area, crews are now staking new drill sites and intend to drill in the
area of the Collins lease as we have leases on both sides of the creek.
The new Weseloh well is producing oil but needs additional completion
techniques to be performed before the Company can determine its best
rate of production.
An oil bbl count per day is not available yet because the exceptionally
strong Hemi Collins 1 well requires more completion techniques and
specialty equipment which is not normally required for shallow oil wells
in Kansas. Even with the needed delays and additional cost, Hemi still
has more than sufficient funds on hand to complete these new wells and
all the supplies and equipment necessary for oil production from these
wells. Craig L. Trieber, chief operating officer, for environmental and
safety reasons, ordered new equipment necessary for this type of well.
This new oil well on the Collins lease validates what the company has
thought all along about the Cherry Creek and East Owl Creek oil trends.
Hemi's very artificially low market cap is substantially below book
value and even below tangible asset values based on conservative oil and
gas industry standards, especially when ongoing due diligence on lease
values in 2 states and also North Dakota's leases are factored in. Hemi
has been cash flow positive for all of 2008 and continues to be cash
flow positive and meeting all normal operating expenses from oil
production. In addition to its budgeted funds, Hemi is also tanking
extra oil for several months more than is necessary for normal
operations.
Hemi Energy Group is an independent crude oil and natural gas producer
employing a unique business model capitalizing on technological advances
to exploit mature fields with millions of barrels of proven oil
remaining in the ground. Using attractive lease/royalty packages Hemi
has secured, in its history tens of thousands of acres of productive
domestic projects.
"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.