Hemi Energy Adds Leasehold Acreage in Woodson County, Kansas
May 29 2007 - 9:45AM
Business Wire
Hemi Energy Group, Inc. (Pink Sheets:HMGP) acquires additional
leases that will add approximately 1200 acres to our lease
holdings. This new lease acreage is part of an ongoing larger lease
program Hemi is currently executing in Eastern Woodson County,
Kansas. This will give Hemi a total acreage equal to almost 7
square miles which has blanket geological formations in this part
of Woodson County. When these mature leases, with proven reserves,
were originally drilled there was a gas solution drive in the pay
zone that produced oil wells that had production of nearly a
hundred barrels or greater per day per well. Based on extensive
historical records, i.e. driller's notes, core samples, well logs,
etc., of these mature leases which have forty-year-old oil wells
that are still producing, management believes the newly acquired
virgin leases will produce similar or better production results as
when these mature wells were originally drilled. This is an
exciting opportunity for drilling new wells that will have much
closer to virgin bottom hole formation pressure and BOE reserves in
place. Therefore, based on the above, management strongly believes,
as the new leases without mature wells are proved-up, the proven
and probable reserves will increase several fold compared to the
independent reserves report that is based only on the five leases
with mature wells in Woodson County, Kansas. Wilshire Capital
Group, Inc. and its affiliate companies are currently pursuing due
diligence to enable them to assist Hemi Energy Group, Inc. Wilshire
has retained a third party petroleum engineering and consultant(s)
firm that is used and well accepted by larger oil companies and
Wall Street investment bankers. Hemi and Wilshire will expand its
working relationship, when due diligence is completed, to pursue
strategic acquisitions of oil and gas producing properties and
implement expansion of ongoing developmental drilling programs.
Planned funding from Wilshire for future Hemi developments is to be
accomplished through a division orders, i.e. contracts to purchase
future oil production. There is no intent to use equity dilution in
any form for future development of Hemi leases. Stockholder's
equity interests will continue to be maintained as it has been in
2007. Management believes that the market cap and the market price
are currently artificially low. This belief is based on the total
value of the oil and gas reserves on leases in Kansas, lease values
in four other states, its extensive research library and
management's experience. 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 million of barrels of proven oil remaining in the ground. 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.
Hemi Energy (GM) (USOTC:HMGP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hemi Energy (GM) (USOTC:HMGP)
Historical Stock Chart
From Jul 2023 to Jul 2024