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PE - well stated post imo. It's sad that many a shareholder sentiment seems to be slowly leaving the optimistic camp and enter the realism of dead money. More and more of the posters are stating their views that the Hemi leadership is just not cutting it - I do hope that the promise from last week's PR comes out with production numbers this week as promised. We'll see...
I know what you mean Onco - those PR's are painful to read in spots. I would think the PR would be passed around to Keith, Craig and John for proofing before sending them off to the news wires.
I'll give them a pass on their grammar and sentence structure though since after all they're 4th generation oil barons. Find me some dang oil - I don't care about no stinking dangling participle!!!
"and most importantly have several times told us that the share price is VERY undervalued even by conservative standards."
It is sad to me that the July 22 PR still has not been corrected when the wording came out as Hemi's very artificially low market cap is substantially book value based on conservative oil and gas industry standards,
If I was a new investor or someone who read this PR w/o knowing all the prior verbiage, I would think that the company is trying to say that their low market cap is book value... I don't fault Hemi for making this typo but come on, PR's get revised all the time. Is this an oversight or does Hemi stand by the original wording in the July 22 PR?
This point was brought up on this board when the PR first came out and I felt for sure that a revised PR would be released - hasn't happened.
USCC - I agree with your point of view although I will admit that this SP defense is usually seen in the larger capitalized stock companies. These pinks have apparently their own way of doing business. You've read the posts by others that gleefully proclaim that the A/S is only 100m shares and the O/S is 68m shares having increased a mere 18m or so in the last 12 months without an exact worded PR as to what / where the shares went.
The facts are that the O/S has increased in the last 12 months. We can assume they went to pay for lease repairs or buy new leases but that's speculation. another fact is that Hemi mgt. states in almost every PR how ridiculously undervalued the SP is, yet they increase the O/S anyway. Maybe it would actually be better for us shareholders for them to borrow the money at say 12% a year interest instead of diluting us shareholders by increasing the number of shares. I mean, if the SP is one third, one quarter or worse of FMV - wouldn't it make financial sense to not issue new shares at these levels????
Today's SP action was the best in about a month and in an overall bear of a market today. Hope this week's promised well updates knocks the cover off the ball and we get back to a dime or so on this next run up... fingers / toes crossed - LOL...
Nice info there Badge man... See, contrary to some posts - you do contribute to this board in a meaningful way at times... LOL...
I do hope the 640 acres (data from Hemi PR dated Tuesday, November 14 2006) that Hemi holds in ND is offsetting some of the XTO leases according to the lease sales prices in your link. Some of that stuff was going for multi million dollars for comparable acreage. Since Hemi's market cap is ~$3M at present, could you imagine a payoff of something in the $1M range... I can dream can't I???
Lease 37 NDM 98090 XTO Energy Inc. 437 acres $655.50 advance rental $3,900.00 per acre Total of $1,705,095.50
Big Mur, REAZO, Kels, others....
How do you see the ND Bakken lease negotiations playing out? Will the acreage be sold for cash? Will Hemi be carried as a minority partner and get royalties off production? A combination of both?
What would you want to see done with any cash infusion if they sell the lease outright? If SP is "very" undervalued, do you see any chance of Hemi buying some of their nickel stock in the open market like the big boys (Exxon for example)?
http://news.yahoo.com/s/ap/20080721/ap_on_bi_ge/oil_profits
Kels - agree to your point about weather. I am trusting that Hemi mgt. is making the best decisions regarding use of capital to the completion of these wells. I guess I put too much faith in the Hemi PR dated 5/21/08 that stated the following (now 8 weeks ago):
The rain in Kansas that had saturated the ground in the area of this well and delayed the completion of the fracing techniques and thereby the barrel count per day but results will be available any day next week from this oil well. The new oil wells will be drilled next week on our leases in the Cherry Creek Trend in Woodson County, Kansas. There will be no delay on drilling the new wells because all supplies necessary for drilling these virgin leases are already in place. The ground condition on the lease location to be drilled has been prepared and therefore rain will not be a delaying factor. McPherson Drilling LLC has been contracted to drill these wells.
BigMur - you did a very good technical explanation of the completion scenario's in your reply. Since I have extensive background work experience in open and cased hole wireline and completion work, lease ownership and operations, I can tell when someone is knowledgeable in the business or just blowing smoke.
With the time line you layed out, it is understandable to not have the stabilized production numbers at this point. I was just pointing out the fact that the wells were drilled over 6 weeks ago and delays up to this point have made the well results be long overdue for shallow wells like these. Glad we're getting close to some numbers, just hope they follow up and give us something in 7-10 days as their past history does not give me much confidence.
We'll see by todays SP action whether the street views this latest PR as something substantial or more of the same... IMHO, I am not that impressed with the news today... Was hoping for much more meat and not more old same-O...
We already knew Collins and Weseloh was producing oil by posts from Kels and BigMur. We just didn't know how much and still don't.
We suspected that O/S was increased by ~4M shares by post from JN.
We knew Hemi holdings (ND and elsewhere) are being actively shopped around for sales to other parties. I want to see details of a signed deal and not ongoing negotiations in perpetuity.
Two quick conclusions from my point of view:
1) After waiting nearly 6 weeks for results of the new wells, we finally get a PR and the best they can do is say "We will release a bbl count per day as soon as it is available, which should be someday next week (Collins)" and "Weseloh well is producing oil but needs some additional completion techniques before we can determine its rate of production." Yawn
2) The O/S is at least addressed and seems to confirm JN's whisper number of ~67M shares.
Count me in for the poll, I'm a regular....
cdaniels - I agree, the website has some stale info on it. Look at this quote from one of the bullet points under the Projects tab:
The price of oil has soared to levels not seen for more than 20 years. Some analysts expect a rising trend could take prices above $100 a barrel.
LOL
Kels - looks like I lost this bet today on the T trades... you'll have to settle for me admitting I was wrong.
BTW - I too have now seen the full Hemi lease holdings in Woodson Co... I just finished a family vacation and our flight from Georgia to Colorado flew directly over SEK. It was bright, clear and sunny both coming and going and was able to view all the operations from 37,000 feet... LOL...
I can't believe no one posted a reply to BigMur's post # 37462 earlier today when he stated that he was on the Weseloh lease and saw the well online and pumping oil into the storage tank. That's the first "official" PR that Weseloh is an oil producer. Thanks for that info BigMur, hope your trip went well and that you are about to push up the SP of Hemi after seeing the operations and will be loading up on more Hemi shares....
Today we touched 0.040 (4 cents) intraday low, want to bet the T trades today are sub 4 cents when they post???
Plastipunk - good info for the members even if inconclusive at this point.
I did a Google search for the terms Geosystems + reserves + Hemi Energy and found the following link and a partial copy and paste of the news PR:
http://findarticles.com/p/articles/mi_m0EIN/is_2007_Feb_23/ai_n27158565
"Hemi Energy Group Announces Oil & Gas Reserve Study for Woodson County, Kansas Leases
Business Wire, Feb 23, 2007
GRAHAM, Texas -- The proven oil reserve as submitted by Geosystems Engineering, Inc., Dallas, Texas to Hemi Energy Group, Inc. (Pink Sheets:HMGP) is 2.15 million proved BOE and the probable reserve of 5.1 million BOE for Hemi's five leases in Woodson County, Kansas. The total potential reserves are 7.2 million Barrels Of (oil) Equivalent for this report."
This Geosystems is listed as a Dallas address, not Tulsa or OK City if that can be a lead to try and track them down.
Nope, the air share (naked selling) is totally different than the higher outstanding shares...
BINGO! Nicely stated points hillzman. Agree 100%.
My point is that like a debate, all good topics should include pro's and con's for the subject at hand. This message board deals with the dealings of a stock and like to see exchanges on both sides. Taken to extreme, message board posters can fall into the pumper and basher designations. No one cares for those that consistently are at the extreme. Kels offers us shareholders very good info from his first hand Hemi encounters, we all appreciate that. Badge and others hit hard with questions and statements that question the companies operations. I think the dialogue is good, sometimes I agree with one side and other times with the other. Today's post by Badge and PE are like my thinking at the moment for those issues raised.
As far as my credentials to evaluate and contribute to the board, I have been investing in stocks for 35+ years, I spent 10 years in the O/G business in wireline logging operations. I have invested over $100K directly buying working interests in o/g wells. I owned and operated a stripper well lease for 3 years at a 100% working interest position.
I feel qualified to have and make decisions in the o/g investing sector. BTW - I have emailed several times to HEMI and have had dialogue with management. I treat those as confidential so will not post directly answers received to my questions. The answers I have received have me in HOLD mode for my HEMI holdings pending some results from recent operations.
I will act as debate judge on these points and sorry Kels, PE (and Badge) wins hands down on the points they raise. All from my perspective of course.
Thanks Big Mur for the good info (as usual) and your interpretation of how the T trades affect stock trading (and Hemi in particular)...
The form of "hedging" you refer to probably involves derivatives and buying / selling futures on crude prices. This is indeed a sound business practice for large users / producers of crude like airlines, petrochemicals and major o/g companies.
I seriously doubt if Hemi's monthly crude output at the moment warrants any attempt to "hedge" in a true sense of the word...
>>Await better prices? You're joking, right?<<
No joking mtrewulf... a reliable source informed me that Hemi views crude oil prices to be north of $150 by Labor day and only needs to sell limited amounts at the moment to pay the bills and move forward with the business plan at hand... The remaining production is being kept in the lease storage tanks.
I find that statement odd that the KGS only reports on what they are told and that oil that is "sold".
When I owned and operated an oil lease in Petrolia, TX in the late 80's, I was required by law to file monthly production reports with the Texas Railroad Commission. Oil sales were provided by the crude purchaser in a totally separate reporting form. Production helps investors evaluate the lease much better than sales IMHO.
To me, production is defined by extracting the oil from the ground and placing it into a storage tank. Oil sales is defined by having a transport company pick up the load of oil out of your tank in exchange for payment at the going rate.
The KGS website I referenced says "Sample Monthly Oil Production, (bbls)". Maybe they need to change their wording to "Sample Monthly Oil Sales" since there is a distinct difference. Many posts refer to the fact that Hemi is "hedging" their oil right now to await better prices. I think the word "hedging" should be replaced by the word "storing".
KGS March production numbers out - just noticed that some of the HEMI leases are now showing March production numbers. They are not trending up like I and others were expecting (more ammo for Badge and PE)...
I will post this statement b4 the mod's get to jump in... The KGS numbers are often partial and late in posting so don't put too much faith in them. I have yet to see a HEMI PR and the KGS reported numbers come close to matching so they have a point... That's all we have to go on since no "official numbers" get released...
http://abyss.kgs.ku.edu/pls/abyss/oil.ogl5.OpLeases?f_id=1033972094
Preach it Brother Cowboy - I could not agree more...
Holding your cards so close to the vest sometimes means all the other poker players get tired and bored and leave the game... With good weather in KS now, we better get some news (good or bad) within the next 10 days...
Good info hillzman - When you look at that large pic of the USA and the shale gas and CBM areas - you're looking at millions of sq. miles of land and ~ 700 TCF of gas reserves in these unconventional plays.
Makes the 11 to 17 square miles and multi BCF NG reserve potential for HMGP's SEK holdings seem pretty insignificant.
Don't get me wrong - I think the gas will add value to our company but the biggest bang for the buck in the immediate future is the oil reserves. Oil sells for a premium relative to NG and is less costly for the infrastructure. I'm hoping the 3 new wells each average 15-30 bopd stabilized once they finally get completed.
As posted earlier, the weather should be in Hemi's favor the next week or so - let's get some acid and frac sand pumped out those perforations and get some crude flowing!!!!
good reply - I'm cool with that - thread closed.
then why in the wide - wide world of sports are you challenging badge about something you already know the answer to???
Unless - you're just testing badge to see if you get consistent answers or to bug him... I guess you're just messing with him...
@zguy - you must have missed this thread from two weeks ago where badge first made the opinion about the T trades drying up...
Here's the answer from PinkElephant-
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30004414
Here's badge's confirmation-
http://investorshub.advfn.com/boards/replies.aspx?msg=30004414
You have nothing to worry about - in the 9 months I've been invested in Hemi, one thing they are really good at are PR's with "preliminary results"
"2 of the new wells are very good"
"New" as in really new like Collins, Driscoll or Weseloh?
Or - "New" in like kind of new like Sturgeon or Tebbens-Hemi #2?
Indeed unusual for our trusted asst. moderator. No post of any kind since 6/16/2008 10:26:40 AM.
I bet when he does post again, it's going to be a good and LONG one, lol. Best wishes, Kels - wherever you are!
From chopperpilot "HMGP will have some more holes punched into the ground"
Maybe some holes punched in the casing as in perforations for the Collins, Driskoll and Weseloh wells. AFAIK, there are no NOI's outstanding for Hemi to drill anything else at the moment - at least according to the KGS website...
This has to be the lowest volume day in quite a while.... zzzzz...
From the June 11th Hemi PR:
"Neither Hemi nor Hemi's management have sold any shares in 2008 to the stock market and no market makers have been selling on the behalf of Hemi. Therefore, it continues to be Hemi's opinion that after hours postings are not shares being sold in volume but are predominately reporting of transactions of sales made during the day."
If KAA wanted to really put a strong statement out on this issue, he should have quoted the actual number of shares outsanding like he did in the following April 17th PR:
"Hemi has 64,394,000 shares of stock outstanding. Hemi has never issued convertible debentures, preferred shares or any other forms of toxic financing and Hemi also remains debt free. Neither Hemi nor Hemi's management have sold shares in 2008. Therefore, Hemi's opinion is that after hours postings are not shares being sold in volume but are predominately reporting of transactions from the day."
If Hemi reads these message boards, I would ask them to list in numbers the actual O/S count during the next PR. Then we'll see if Strongus, Badge, JN are correct in the higher share count.
There could be no debate about carefully chosen words or the meaning of what "is" is. Thank you Bill Clinton for that little legal ease.
I have to agree with the Jagman here... citing financial records from January-July 2007 does not address what is happening in the year since then. I don't think that Pink sheet stocks have to disclose this type of info on a quarterly basis like big board stocks but this type of info is being sought by us investors on this board.
I think Badge's post below is referencing an example of a financial statement from another Pink sheet stock and it's date is May 2008
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29987524
You know that Hemi has this type of record keeping, it would absolutely be required for IRS purposes wouldn't it?
Ericus - I agree, Big Mur provided a nice case for his guess on current BOE production. But... let's not compare apples with oranges. My calculation was based on a 2 month average of "actual" Hemi PR'd production figures (Dec. and Jan.) where Big Mur based his calculations on "potential" production under the variables he provided.
1800BOE a month would be a very nice figure especially at these prices. Now we, as shareholders, would have to ask - "what's the problem" when Hemi finally releases current monthly production rates if they don't live up to that value.
Don't get me wrong, I'd love to see production rates above those values and maybe we will once the 3 new wells start producing.
Calibob - I had the same problem at TD Ameritrade. Check out this post for further info. I ended up buying through Fidelity but their commissions are too high for the qty's I've been buying.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29641424
actually for reserves:
KBOE is thousands of barrel oil equivalent
MBOE is millions of barrel oil equivalent
BBOE is billions of barrel oil equivalent
http://moneyterms.co.uk/boe/
this is confusing because when talking NG flow rates, mcf is thousand cubic feet and mmcf is million cubic feet.
they do use 6000 cubic feet of NG to equate to 1 barrel of oil but that is based on energy output. we investors want to know about dollars. since NG is going for ~$12.75 and oil is ~$135.00, there is an 11 to 1 ratio on the dollars instead of a 6 to 1 ratio on the energy contained.
that is why NG has so much potential right now, it hasn't had the major price run up like oil. either NG prices will rise to catch up with oil or oil price will decline to come closer to NG. I think I know which way that will resolve itself.
those cbm leases will make us all some money when they get developed.
Big Mur - I agree, exchange of facts , figures, speculation, ideas, etc. relating to the Hemi business is why I read and post here.
Much better than the personnel barbs bantered about earlier today - sounded like my old High School days when there was going to be a rumble behind the bleachers after lunch period. lol.
I would love to see your bbl. count guess for the 3 new wells, please PM me during Friday's free happy hour.
Brian
I used the data from Hemi's own PR in February that stated:
January oil production ramped up to 669 bbls from the December production of 461 bbls.
That works out to ~20 b/d averaged over the 2 months if you cut out a couple days for down time. You can't challenge the source, it is Hemi's own. There are countless posts here on the board begging for some new numbers for Feb-May but since those are not released, i just went with what is known.
Now that being said, I am optimistic that the new well's will really up the daily BOE count but until those are baselined for a minimum of 3 months, we can only speculate on actual production numbers. GLTA - I hope you all realize I just try and stay "fair and balanced" on presenting my opinions...