Hemi Energy (GM) (USOTC:HMGP)
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Hemi Energy Group Inc. (Pink Sheets: HMGP) announced
today that it has closed an acquisition of producing oil and gas
properties in Montgomery County, Kansas. Hemi has also announced that
it has recently filed an information disclosure statement pursuant to
rule 152C-11 with Pinksheets.com.
The acquisition of this property gives Hemi 100% working interest
ownership (80% Net Revenue Interest) and will add approximately 20 net
barrels of oil equivalent (BOE) to Hemi's Kansas daily production,
bringing Hemi's Kansas producing well inventory to 64 production wells
and seven disposal wells, located on approximately 1,800 net acres
located in southeastern Kansas. The effective date of the acquisition
is June 1, 2006. The acquisition was a cash purchase.
Keith A. Anderson, Hemi's chairman and CEO, stated, "This
acquisition, at a cost of $6.55 per BOE of proved and unproved
reserves, constitutes further evidence of Hemi's ability to identify
and target acquisition opportunities within our core areas which
provide excellent potential for our enhanced oil recovery synergies.
It also demonstrates evidence of efficient use of our existing
infrastructure and personnel, with meaningful reserve and production
accretion. We are specifically targeting the southeastern Kansas
region because the mature fields in Kansas respond so well to our
enhanced oil recovery techniques.
"I hope our shareholders understand how competitive the oil and
gas industry has become and realize we are continuing in our
aggressive process to acquire additional Kansas oil and gas properties
located in this geographical region. Releasing additional or more
detailed information could significantly impact our negotiations and
the potential price of the acquisitions we have targeted. We should
complete our Kansas acquisition program by the end of our third fiscal
quarter and will be better prepared for complete disclosure at that
time."
About Hemi Energy Group
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 tens of thousands of acres of
productive, domestic projects. The company's forward-thinking strategy
has placed it in an enviable position at a time when prices and global
demand for oil continue to rise.
Building on decades of experience in enhanced oil recovery, Hemi
has successfully amassed a substantial and attractive portfolio of
these high-quality domestic properties. By streamlining operations
through cutting-edge technologies, Hemi has the ability to operate
more effectively and efficiently than larger oil companies. For
additional information, please go to www.hemienergy.com or
www.stockinformationsystems.com.
Safe Harbor Provision
This press release may contain forward-looking information within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, and is subject to the safe
harbor created by those sections. Examples of such disclosures would
be statements regarding "probable," "possible," or "recoverable"
reserves among others. There is no guarantee that the projects that
Hemi has recently acquired will increase the value of its shares of
common stock, or that Hemi will acquire rights to explore and operate
any other such projects, or that in the event that it acquires rights
to explore and operate other such projects, that these actions will be
successful or increase the value of Hemi's common stock. There are
many factors that could cause our expectations and beliefs about our
plans to acquire additional exploration or production properties,
including our plans to drill or our drilling results to fail to
materialize; competition for new acquisitions; availability of
capital; unfavorable geologic conditions; the complexity of coal bed
methane exploration and production; and prevailing prices for natural
gas and general regional economic conditions. Hemi Group assumes no
obligation to update the information contained in this press release.