Hemi Energy Announces Well Developments in Two Kansas Counties
August 08 2007 - 9:50AM
Business Wire
Hemi Energy Group, Inc. (Pink Sheet:HMGP) The Sturgeon-Hemi 1 is a
good producing new well with a high quality green oil (39 specific
gravity) exceeding our expectations for our first new well located
on the Sturgeon Lease near the town of Cherryvale in Montgomery
County, KS. This new pay zone in the Bartlesville geological
formation on this lease, in our opinion, still has its original
gas-water solution drive. This well, that has been thoroughly
logged and tested, and when the completion techniques are finalized
in less than two weeks, will produce an exceptional volume of
high-quality oil. We will be able to give shareholders a barrel
count per day as soon as the fracing fluid is recovered and
production baselined. There were also two pay Coal Bed Methane
(CBM) zones of very economically viable natural gas development, we
chose not to produce at this time and leave "behind pipe" for
future development. Hemi drilled a deep exploratory well on the
Tebbens Lease which allowed us to discover several coal bed methane
(CBM) gas and oil pay zones not previously explored in Woodson
County, KS. An important new geological pay zone, the virgin Tucker
Sandstone formation heretofore unknown to exist in Woodson County,
had an exceptional show of crude oil. Hemi management strongly
believes that when produced these gas-water solution drive wells
may produce exceptional oil wells similar to the historical early
20th century original oil wells produced from the Squirrel
sandstone geological formation. We will be producing this new oil
pay zone once we have received the information from the drilling
cutting samples and evaluated the information obtained from open
hole logging. There was also an excellent oil show in the Squirrel
pay zone in the deeper new well on the Tebbens lease. This deeper
well will be needed as a water injection well in anticipation of
ramping up multiple new well production so that we can produce oil
from the new wells at the highest rate possible. We are drilling an
offset well less than 100 ft. from this well so that we can produce
the excellent oil show we had from the Squirrel Sandstone
formation. Management believes, based on extensive experience in
producing oil from reworked oil fields, that by using the new
injection well to de-water the mature wells this will increase oil
migration to the mature wells on the five contiguous leases in
Woodson County. Management and groups assisting Hemi are addressing
issues involving the artificial low market cap. Management knows
that the total value of the oil and gas reserves in Kansas, BOE
values on leases in four other states, an extensive library of
geological information, and management experience, confirms that
the undervalued stock market price is irrational considering all
the values and fundamentals above. "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.
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