Hemi Energy Operational Updates for Kansas
May 04 2007 - 9:48AM
Business Wire
Hemi Energy Group, Inc. (Pink Sheets:HMGP) has entered its near
term final phase of lease acquisitions in Woodson County, Kansas.
Hemi is in the final phase of acquiring additional leases with the
majority of lease acreages being continguous to the current Woodson
County leases. These additional leases, as completed, will more
than double the size of its operational footprint in Woodson
County. The new oil well, Hemi 2, and the reworked mature wells on
the leases at Woodson County are producing oil and we expect to
meet our current production projections from these leases.
Prolonged heavy rains in this area have caused flooded field
conditions, but have not affected daily operations of producing
oil. However these conditions will not allow Hemi to move heavy
drilling equipment to the permitted drill sites for new drilling on
these leases. Hemi will be returning to Woodson County leases to
drill these permitted sites as soon as field conditions allow. The
Woodson County new oil well development drilling program will
continue as planned throughout the year. Rather than fall behind in
production in our EOR and drilling schedules, and because of the
above weather conditions, Hemi has decided to move the drilling
program to the Montgomery County, Kansas lease near the town of
Cherryvale. We had planned to conduct the drilling on this site in
the 3rd or 4th quarter of 2007 but moved up the timetable to
effectively use equipment on this lease which has favorable field
conditions. The Montgomery County lease continues to produce better
than average oil production from its mature reworked wells. Hemi
President Keith A. Anderson says, "New research has located natural
gas wells that were drilled from 1950 to 1980 on the Montgomery
County leases. These wells were drilled as oil wells, but rather
than finding oil the developer found natural gas. The wells, which
drill stem tested or open flow tested at between 300 to 400 mcf per
day make them valuable wells at today's natural gas prices.
However, at the time they were drilled, low gas prices led to the
wells being plugged and abandoned due to minimal crude oil being
present in the formation and no gas pipeline availability in the
area at that time. These wells were drilled and tested in the
Mississippian formation which is a deeper gas pay zone formation,
than the geological formations of(Squirrel/Bartlesville) in which
we are conducting ongoing EOR production. We have identified a new
drill site near an old gas well and are also conducting re-entry
drilling operations in 2 or 3 old gas wells that were not
completed. We are drilling and completing the first gas well in
May." 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
thousand 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 http://hemienergy.com or
http://www.stockinformationsystems.com/c/HMGP/index.html. "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. LIMB
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