Hemi Energy Acquires Critical Equipment to Expedite Development
March 14 2007 - 9:45AM
Business Wire
Hemi Energy Group, Inc. (Pink Sheets:HMGP) Hemi Energy purchased
and has taken delivery of a Pulstar P20000, a heavy duty truck
rigged out for pulling/workover of oil and gas wells, from Pulstar
Manufacturing of Dodge, Nebraska. Hemi�s experienced rig foreman
has also already been trained on site for this unit at the
manufacturing facility. Having our own unit will allow us to
expedite completion of Hemi�s new and reworked oil wells. President
and CEO Keith A. Anderson stated, �Southeastern Kansas has a
critical well service equipment shortage due to the greatly
increased volume of drilling in the area. As with many other oil
and gas operations, Hemi was confronted with unacceptable wait
times for equipment in order to complete necessary reworking of
wells. This equipment availability issue had begun to affect not
only our completion of mature wells but also new well drilling
schedules. It became clear equipment availability was going to
become an ongoing issue, therefore Hemi chose to do this service
work in house. When the unit is not in use by Hemi, it will allow
us to contract out the unit to other oil and gas operations in
southeastern Kansas. This contract work will allow a secondary
revenue stream to Hemi Energy Group. We have crewed and tooled the
pulling/workover unit, which is presently on the lease, completing
our first new well in Woodson County, Kansas. Upon completion of
the new well this week, we will be announcing the rate of bbls of
oil per day. Hemi will be acquiring additional leases which have
mature oil wells, based on its library of extensive geological
information in Kansas, and this critical piece of equipment will
allow expedient reworking of these mature wells." Hemi Energy
Group, Inc.�s first new oil well on our Woodson County leases
confirms our information of this lease�s geological formation
reserves and also information from the reserve report about blanket
formations. It will take nearly a week to complete all the
necessary steps to fully bring this well online in order to
determine the bbls per day of output. The well flushed in with good
oil thru the drill stem, confirming this as a good well, even
before the steps which will be been taken to enhance the online
production of bbls per day. Hemi has extensive oil well experience
using carefully chosen completion techniques which increases oil
production. The main oil zone we are producing from is very good
and is 11 feet wide based on open hole well logging and other
methods. We are evaluating geological information gathered from
this drilling, by using several methods, that will allow us to more
efficiently develop geological reserves from future oil wells on
these six leases. Hemi will drill a second oil well in March, 2007
on the same lease because of the success of the first well and also
based on new geological information derived from the this well.
Hemi�s developmental new well drilling program will drill multiple
new wells per month throughout the second quarter on the Woodson
County, Kansas leases. As we get into warmer spring weather, we
will have access to some of the better locations on each lease.
Based on our experience of previously reworked wells on these
leases, we will be selecting sites for drilling new wells. 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. "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 or
http://www.stockinformationsystems.com/c/HMGP/index.html.
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