Hemi Energy Group Announces Lease Sale Negotiations
April 22 2008 - 9:42AM
Business Wire
Hemi Energy Group, Inc. (Pink sheets: HMGP) is in negotiations to
sell some of its leases, while maintaining royalty interest, to be
pooled with other leases held by major oil companies in the Fort
Worth area. These companies have major developmental drilling
programs in the Barnett Shale leases they own and are still
acquiring in greater Fort Worth. Hemi has added more and will
continue to add to its checkerboarding lease holdings in Fort Worth
that will absolutely be legally required "well spacing
requirements" before major oil companies can obtain a permit to
drill. They are also looking at the values of some of Hemi's leases
far from Fort Worth, but within less than five miles of where there
is active deep drilling of wells or wells producing millions of
dollars per year per well. Hemi's next two wells, to be drilled
near term, are in the Cherry Creek Trend in Woodson County, Kansas.
The Weseloh and Driskell virgin leases are in the above Trend and
within a 4 mile radius of our 5 producing leases. The Trend area
has had more than 25 intent to drill permits filed by other
companies, some of which have already become new oil wells on
virgin leases, and is a large increase since the latter part of
2007. We have gained confidential new knowledge about several wells
production and the large increase in intent to drill permits
reflects others have also learned about the oil values in this
trend. Our next two new wells will be drilled in close proximity to
some of these excellent producing wells of other oil companies. The
results from the completion of the fracing and completion
techniques on the Collins lease should give us a barrel count per
day to be released before mid-May. Keith Anderson, Hemi CEO, on
site during the drilling of this well, said, "Drill cutting samples
from pay zones were bleeding oil as I was holding them." Mr
Anderson continued to say, "This is not a mature lease and should
have production similar to our mature leases in Kansas when they
were first drilled. The new completion techniques are vastly
improved from the ones used in the early days of this area of
southeast Kansas. A strong gas water solution drive is likely to be
present in this new oil well and through out this lease. Therefore,
the production and the decline curve should be much better than
wells drilled on mature leases that have lost most of this drive."
The extrapolation of the results from the three wells, management
believes, will add significant production and reserve values to our
lease holding in southeast Kansas. Management's beliefs are based
on well logs, coring and drill cutting samples, reserve report
information and confidential information obtained from government
sources, service companies and vendors in this area of Kansas.
Therefore, the artificially low market cap is subject to being
revised upward based on all the above significant events near term.
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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