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Jagman that is highly commendable that you give blood when the opportunity presents itself. I know of people in my area who are first in line on Sunday for church and last to leave but during the rest of the week.....And of course there are truly good people there too. There are many, many greedy and bad people that work in companies, especially pink sheets who give themselves high salaries then issue more shares to pay them, are not open or communicative. It is almost as bad as Congress voting themselves another raise last week when their job approval ratings are tanking.
Your reply was so quick I do not think you gave yourself the opportunity to reflect on how you spend your days compared to how Keith spends his days. Take some time and think about it.
Jagman it is all about character.
Remember the thread about Keith's marine experience. The recent bbq in Woodson County was good public relations and creates a lot of good will in the community. It is smart. But the recent actions by Jerry shows how the type of character and compassion Keith has trickles down among all employees. And this happened because of the circumstances that presented themselves. The reaction was based on character and compassion.
Remember, they were risking their lives. The leases were already secured. They did not need to do this. I am sure that character, as well as qualification is highly considered when Keith decides to work with someone. Why would he stand to have someone around that does not share his values?
His everyman's salary and refusal to dilute the stock, the personal communication to investors all make it so obvious how he is not your typical CEO and part of what makes hemi not your typical pinkie stock. These all seem so obvious to me. Add all of the tremendous fundamentals through the thorough DD on this board and we have something special here.
You can ridicule or kid people about their rah rah feelings but in the long run it does not change the fundamentals, does not change the knowledge and the reserves, proven and yet to be proven. These qualities and character issues would make hemi a good company to invest in regardless of the sector. But we find it in, perhaps, the most rewarding sector in the market at the present time. Here is a chance for some introspection. Think about how Keith spends his days and contrast it with how you spend your days. Happy 4th.
"Dead money". I always loved that phrase. It is implying that your money is not doing what it should be doing. Daytraders and flippers use this term. But just as easily can you place it in a stock that grows your investment, it can decrease your investment. Is that dying money? Or sick money? I think my money in hemi is far from dead, in fact I would like to add company to it because it appears that (given the value of KNOWN assets) I can buy at least a dollar for less than a quarter. Now if you can find a five bagger like that would you please share it with the board or through pms.
Sure you did eom.
Chuckrmom22. I agree one hundred percent. I actually closed out several positions, some for profits, some for losses and have a gtc order in now on another small oil and gas. I think we will see these levels (and maybe teens) for a little while and I want to buy more also. In one sense, for longs, it is a good thing that we remain under the radar, undervalued with bargain prices. Nothing changes our assets and reserves AND THE OTHER RESERVES WE WILL PROVE UP. So as good as things look now fundamentally, they will only get better. Eventually the market will catch up with us so longs should get all they can while the getting is good.
Chuckrmon22. This is the first of your posts I have replied to, but let me say how well reasoned and insightful all have been. Options is a great point you made about hemi. When Keith found the share price to be artificially low and over $100 million of proven oil in the ground, he went with Wilshire and, it seems, an uplisting. The other leases were going to be drilled and proved up at some point anyway. Circumstances have forced the decision, but at least the options are there. How many other small pinks could survive this meterological debacle? None I would say. GLTY
On second thought Jagman, you should just sell as quickly as you can, cut your losses and find another board where your experience trading and your wisdom can benefit them.
break the company"???????????????????????
You are trying to be funny, right???
With no debt, therefore no financial obligations, they could, theoretically, shut the company down for five years, then pick up where they left off.
Do you know of any other pink sheet stocks that have the luxury of no debt or dilution? And obviously Keith is not worried about a little money short term with his small salary.
It is all about the long term, big picture, buy out of reserves. Keep holding long Jagman, you will be rewarded with the rest of the longs. Trust the funamentals.
Lowman that is just great for hemi. As if Keith has not already created a lot of goodwill with locals and the state. This type of thinking is as smart as it gets and is impossible to put a value on. Word spreads on the ground about what makes hemi different from the other companys trying to come in and "swindle" the owners out of their oil. Great for Keith and great for hemi. Really, having read and heard as much about of him as I have, and of Craig, this really should not come as any surprise. Still holding long and strong. Happy 4th everybody.
Flooded Kansas river carries oil slick
By ROXANA HEGEMAN, Associated Press Writer
1 hour, 12 minutes ago
COFFEYVILLE, Kan. - The flood is bad enough, engulfing homes to the rooftops and turning neighborhoods into floating junkyards of children's toys and family heirlooms. But the floodwaters here also carry some of the 42,000 gallons of crude oil that spilled from the Coffeyville Resources refinery on Sunday, coating everything they touch with a slimy, smelly layer of goo.
"My question is how are they going to get all that oil out of the environment," said Mary Burge, a heart surgery patient who was forced to breathe from her portable oxygen tank because the petroleum odor Monday was so strong it could be detected by helicopters passing overhead.
The oil spill, caused by a malfunction while the refinery was shutting down in advance of the flooding, has concerned federal and state officials as they monitor the slick's progress down the Verdigris River toward drinking water sources and recreation areas in Oklahoma.
It also presents another hurdle to Coffeyville leaders as they map out long-term flood recovery efforts that now must deal with the toxic sludge.
Jim Miller, Montgomery County emergency manager, said the U.S. Environmental Protection Agency had teams on the scene and was monitoring the oil as it snaked through town, leaving greasy stains where it receded from lawns and buildings.
Sharon Watson, spokeswoman for the Kansas adjutant general, said the EPA and state officials would work with officials at the refinery to measure the amount of contamination and help the refinery in cleaning up. In the meantime, however, Watson said, "We're asking everyone to avoid the floodwaters."
That wasn't an option for Fire Department Capt. Mike Mansfield, who rescued eight dogs from water-logged homes Monday. He said all the dogs found outside were covered in oil.
The oil was floating downriver toward Oklahoma and that state's Oologah Lake, about 30 miles northeast of Tulsa, said Maj. Gen. Tod Bunting, the Kansas state adjutant. Oklahoma officials were optimistic the spill would dissipate before it reached the lake, which provides flood control, drinking water and recreation.
"There are nine public water supplies along the Verdigris and the Oologah Lake, and none of them are currently affected," said Skylar McElhaney, a spokeswoman for Oklahoma's Department of Environmental Quality. Tulsa is among the cities that get water from Oologah.
The oil spill just added to the misery caused by widespread flooding for thousands of evacuees in Kansas, Oklahoma and Texas.
Eleven deaths have been blamed on the storms and flooding in Texas, where two men are missing. In North Little Rock, Ark., about 30 homes were evacuated Monday after a faulty drainage system caused flooding up to six feet deep in some spots.
The full extent of the economic costs may not be known for some time. Weeks of heavy rains have dampened recreational activities across the Plains, slowing business at parks and tourist destinations and leaving campsites and hiking trails waterlogged.
A year ago many Texas officials were warning boaters about lakes that were too low and banning fireworks because the ground was too dry. Now some popular lakes might be closed for the Fourth of July because they're too full, and fireworks shows are threatened by a continuing forecast of rain.
Rob McCorkle, a spokesman for the Texas Parks and Wildlife Department, said recent torrential rain already has forced three state parks to close temporarily, some through Independence Day, one of the busiest times of the year.
"Obviously it's going to impact numbers," he said. "People don't want to go camping when it's pouring down rain."
McCorkle said the department has closed Lake Whitney State Park an hour south of Fort Worth as well as Mother Neff and South Llano River state parks in Central Texas. Several reservations at Lake Brownwood State Park in West Texas had to be canceled and some of the campsites were flooded, he said.
"If this kind of rain continues and keeps these parks shut down, it will definitely have an impact of the revenue flow for the state park system," McCorkle said
But for swimmers who need to get their fix, water parks are always an option — and they need the business.
Jeffrey Siebert, a spokesman for Schlitterbahn Waterpark in New Braunfels, said attendance has taken a hit and even a threat of showers is enough to keep customers away.
"We've been very disappointed with the beginning of our season," he said. "No rain this week would be ideal. No rain and no prediction of rain would be great."
___ http://news.yahoo.com/s/ap/20070703/ap_on_re_us/flooding
Woodson, Montgomery Countys under state emergency
from the Governor. She added six more today for a total of 18 counties.
Floods close roads, cause evacuations
Several counties struggle under deluge
BY BRENT D. WISTROM
The Wichita Eagle
Andrew Brosig/Pittsburg Morning Sun
Kinnard Williams, left, and Randy Bander, both of Frontenac, look toward shore as they await rescue Saturday at Crawford State Park near Farlington. The pair were trapped for about two hours after reportedly attempting to drive through swiftly moving floodwaters and being washed downstream.
Gallery: Storms flood southeast Kansas
Gov. Kathleen Sebelius declared a state of emergency in 12 counties Saturday as swelling floodwaters turned the town of Neodesha into a virtual island and forced dozens of evacuations and rescues across a broad swath of southeast Kansas.
And the sprawling weather system that has already dropped 12 to 14 inches of rain on these drenched counties is expected to drop another 2 to 4 inches through this afternoon, National Weather Service meteorologist Matt Wolters said.
"I don't know what we're going to do with it," said Gary Fitzmorris, a Wilson County commissioner who has emptied his 6-inch rain gauge twice in the past couple days. "I've just never seen it rain this much. I don't think anybody else has either."
Fitzmorris lives near Fredonia, the Wilson County seat, where only high-water vehicles could get in and about 3,000 people remained without power and clean water.
The 70-year-old guessed that at least 20 homes had anywhere from 6 inches to 5 feet of water in them.
"It's probably more than that," he said by phone. "I can't get anywhere to find out for sure. It's going to be a mess."
Neodesha isolated
Neighboring Neodesha, a town of 2,652 that's about 100 miles east of Wichita, was surrounded by water -- with only boats and helicopters able to get in, according to the state adjutant general's office.
Floodwaters there shut down the water and sewer plants, leading to a boil-water order and backed-up sewers. Altoona, a nearby town of 472 people, was also without clean water.
Roberta Forslund, manager of the G & W Foods Inc. grocery store at Sixth and Main, said the store had sold out of water, bread, milk, eggs and hamburger and that their distributors couldn't get into town.
She said many of the people coming into the store have had their homes flooded.
"Everyone seems worried and scared and upset," she said by phone.
Diana, a woman who works at the Bailey's Corner convenience store, near Eighth and Main, said that store also was sold out of water and milk.
Her mom called Saturday morning wanting to know her plans if the flooding continued, she said.
"I said, 'Mom, it's kind of hard to make a plan when you can't leave from either side,' " she said.
No flood-related deaths or injuries have been reported in any of the inundated counties, Kansas adjutant general's spokeswoman Sharon Watson said.
But five water rescue teams were dispatched -- two to Fredonia, two to Neodesha and one to Garnett. More rescue teams and the Kansas National Guard were ready to deploy, Watson said.
The governor's disaster declaration includes all those towns in Wilson County as well as Anderson, Butler, Bourbon, Coffey, Cowley, Chautauqua, Linn, Montgomery, Neosho, Osage and Woodson counties.
The state declaration frees state resources to assist counties when they have exhausted all of their resources. The declaration will be wrapped into an earlier one requesting federal aid, which would reimburse those counties for cleanup.
Soaked situation
Coffeyville began mandatory evacuations late Saturday night, forcing hundreds of its residents out of their homes as Verdigris River reached the top of a levee, said Cindy Price, the city clerk.
Virtually everyone who lives east of Patterson Street, which Price estimated to be about a quarter of the city's 10,359 residents, was evacuated.
Residents either left by their own cars or took city buses to the Red Cross in Coffeyville, where they were dispersed to various locations in the city.
Price said the river breaches the levee at 26.5 feet and the water was 25.5 feet high at 10 p.m. Saturday.
Public safety officials closed scores of roads Saturday, including large portions of U.S. 400 and portions of K-15 near Grouse Creek in Cowley County.
Here's an overview of what happened in other flooded counties:
• Park rangers evacuated 300 to 400 campsites on Bluestem Point on the low-lying north end of El Dorado Lake in Butler County after the lake rose 3 feet above its normal pool.
Park ranger Dustin Ward said the U.S. Army Corps of Engineers warned them that the lake would rise 5 feet above pool even without more rain.
A Burlington Northern Santa Fe Railway line was closed in Augusta due to the opening of a floodgate.
• In Neosho County, the levee north of Chanute on the Neosho River broke and water spilled over the top of the levee in the Erie area. Evacuations continued in Chanute and Erie and the American Red Cross set up shelters in both towns.
• A nursing home in the city of Dexter in Cowley County evacuated one of its wings.
• Several roads were closed in Woodson County and around Neosho Falls.
• In Chautauqua County, the Neosho River reached nearly 38 feet, nearly 10 feet above flood level.
• An unknown number of evacuations occurred in Boicourt in Linn County.
• In Allen County, voluntary evacuations were under way in Iola, said Corey Schinstock, assistant city administrator.
"Various sections in the south of town are under water, and the water is climbing," Schinstock said.
He said the city also disconnected power to several homes in the town of about 6,000 as a safety precaution. There were no reports of injuries, he said.
Contributing: Phyllis Jacobs Griekspoor of The Eagle; Associated Press
http://www.kansas.com/news/state/story/111379.html
Jagman, manyLONGS here are NOT bagholders. I did not buy in originally under two cents as Lowman, Big Mur, Bedwards and others, but I am under a dime. You, however, are a BAGHOLDER at .39 per share. Why, do you continue with these posts that seem to create doubt about Keith's ability to operate in a dynamic way under ever-changing conditions (NSS, weather, Craig's wife's illness, etc) when that strategy will only lose you money? What purpose is it to regularly toss out the problems of any pinks (non-reporting, lack of sec oversight, lack of institutional investment) when it can only lose you money. Did you really buy at .39 to flip, or were you smart enough to buy at .39 knowing Hemi's value is multiple times higher than that?
Jagman are you still holding hmgp long and strong?
This type of valuation may be good for companies that are going concerns and are meant to stay in business indefinitely. This is not the case with hemi. The valuation of hemi must be based on reserves, values of leases, and value of archival geological information since the selling price in 2008-10 as Keith said, would be based on the value in terms of oil and gas industry standards. Its all about reserves, not profit.
LOL. I guess the more trust one has in Keith, and their own DD and the links on the board, the less anxious one feels about trading at these ridiculously low levels. But every day, we get closer to finalizing the 17 square miles of Woodson Cty leases, closer to proving up to who knows how many millions more bbls of oil and gas, closer to drilling in other states to prove up reserves there, and closer to a buyout in the multi-dollars.
It seems the hemi investors who expected to flip, have reluctantly and unwillingly been converted to longs. They have no choice. At least we are not hearing the unending posts begging for production numbers. Apparently people have realized that Keith's agenda trumps everyone else's. And this is fine by me. I know Keith is growing the company every day with every decision whether we hear the details or not. I believe, as most longs probably do, that it is only a matter of time until we hit dollars.
Jagman, there may be no other companies expressing interest in the Kansas leases at this time. Keeping the activity quiet was not for the locals and getting a better lease arrangement from them, it was to keep the information away from our competitors so there would be no bidding war. The people in Woodson county cannot exactly go out and find an oil company to talk to. It is the companies that come to them. So it is not exactly like buying a house or a car.
Gigantus. I believe it would be illegal to have commerce with Iran. I think since the hostage crisis and the embassy takeover we have severed diplomatic ties and sanctioned them economically as a "state sponsor of terrorism". It would be illegal for any company to buy oil from them. There are no flights from the U.S. to Iran and I am sure our naval forces in the region would have found any illegal oil purchases. If they are sanctioned for their nuclear ambitions and other countries uphold it and act accordingly, that means they (Iran's oil export customers) will then be moving to other suppliers which will drive the price of oil up in world markets. GLTY
pink floyd. I agree with everything you posted. I received a pm from a large investor when the Wilshire deal was circulating initially that Wilshire and Keith had different ideas for hemi. We know that Keith was for building reserves and selling "at oil and gas industry value standards" as he stated in the last audio interview. Wilshire, on the other hand, wants Keith to grow hemi to be a serious domestic player. Keith never planned to uplist but the artificially low share price seems to have forced his hand. This idea about hemi's future came from a well positioned and astute long who seems to know more than me. The actions of hemi, as you have described and we have seen do nothing to confirm or refute this. Either way longs are in a great position. I am always looking for opportunities to increase my modest position. GLTY
No, we do not import oil from Iran, even through third countries. There is plenty of data. We do not need Iran's oil. They need the US more than we need them. You are not really arguing with me but with the EIA. Here are a couple of links. There are plenty more.
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import....
http://www.gravmag.com/oil.html
http://tonto.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_m.htm
Actually we do not import any oil from Iran. But many nations, especially China, do.
Gas riots in Iran.
Isn't this ironic. One of world's top oil exporters raises gas prices to about .42 per gallon and limits to 26 gallons per month. They do not have enough refining capacity. And to think they are worried about going nuclear.
From CNN's Shirzad Bozorgmehr
TEHRAN, Iran (CNN) -- The Iranian government's last-minute decision to ration monthly fuel allotments, as well as increase the price of gas, triggered protests and riots -- a rarity in the Islamic republic -- according to Iranian media reports.
The oil ministry issued a statement at 9 p.m. Tuesday that the restrictions would go into effect at midnight.
That prompted hundreds of thousands of car owners to line up for miles at gas stations late Tuesday and early Wednesday. Others took to the street in protest, burning at least 12 gas stations in Tehran and looting other businesses, according to Fars News Agency.
Under the order, most Iranians will be limited to about 26 U.S. gallons (100 liters) per month. The ministry also announced the price would be raised by more than 20 percent to 11 cents per liter (about 42 cents a gallon).
The riots took place across Iran's major cities, including the holy city of Mashhad and Arak, where Iran's heavy water plant is located, according to Iran's official news agency, IRNA.
The riots were so intense that fire engines could not reach the burning gas stations, Fars reported, adding that the security forces and the Basij militia were trying to get the situation under control until 2 a.m. Wednesday.
Video showed streets jammed with cars waiting for gas. Some drivers returned to their cars with plastic cans, even a ceramic pitcher, filled with gasoline.
Fuel consumption has increased in recent years in Iran, which imports $4 billion worth of gas each year. Although it is the fourth largest crude oil producer in the world, Iran lacks the capacity to refine all of its petroleum into gasoline for consumption.
Iran's government has considered imposing gas rations in the past, but the measures have been postponed amid debate. It has also debated how to increase gas prices so they are more in line with market value.
Iran is tightening its belt as the United Nations considers imposing additional economic sanctions on the Islamic republic for its failure to comply with U.N. demands to halt its uranium enrichment program. In addition, U.S. lawmakers are considering the Iran Counter-Proliferation Act of 2007 which calls for an end to foreign investment in Iran's energy sector.
"We must reduce our vulnerability in foreign relations in order to safeguard our political independence by resolving our traffic problems," parliament speaker Gholamali Haddad-Adel said.
Haddad-Adel, who is considered to be close to Iran's Supreme Leader Ayatollah Khamenei, also said the measure was an attempt to combat gas smuggling out of Iran.
Hundreds of thousands of liters of cheap and subsidized gasoline is smuggled out of Iran to other Persian Gulf countries as well as to Pakistan, Afghanistan, Iraq , Turkey and Azerbaijan, costing Iran hundreds of millions of dollars each year.
Iran's parliament Wednesday rejected an emergency measure that would have postponed the order to impose rations and increase prices, Fars reported. Parliament is scheduled to take its summer recess after Wednesday's session, but it could reconvene to deal with the situation.
http://www.cnn.com/2007/WORLD/meast/06/27/iran.fuel/index.html?eref=rss_world
It struck me the other night that watching Hemi and reading the mb is like going to the theater. Longs are there from the beginning of the movie and have read reviews and even know the script, because Keith told us the plan. We sit and watch the scenes unfold, leases, drilling,reserves. Then people enter the theater late and disturb everyone by asking what is going on with the movie. These are like people who do not take the time to read the comprehensive DD in the IBox. And once Big Mur's ambitious project is completed it will be even better. Then there are people talking to the screen, cell phones ringing, like noise on the mb. One sentence statements that really are unimportant or already addressed, noise as it was called. Hemi is a company that operates close to the vest for the larger investing community but in reality Keith does communicate directly with the board and investors through stock information systems and emails. This is unusual and good. So we should all just sit back, enjoy the movie and enjoy the ride. We already know how it ends because Keith gave all longs a copy of the script. GL all Longs.
HERE, HERE and well stated. It may be time to jettison the dead weight so we can move on to the ACTUAL VALUE.
Quit being lazy and do your own DD. Your previous posts have not shown you to be legitimately interested in a long position. It is very easy on this board. Just read all the links in the ibox. If you think that makes us antagonists, well, you would be right.
Nice charts that accompany the article. Click the link below.
Market Update
Clive Maund
June 27, 2007
The overall picture for oil remains favorable with the price advancing away from a large Head-and-Shoulders bottom formation. On the 1-year chart for Light Crude we can see how this base pattern developed since last September. Although the break above a clear line of resistance at about $67 this month was a bullish development, the lack of vigor and follow through on this move and the dramatic ramping of the Commercials’ short position as last reported increases the likelihood that the price may slump back into pattern to “do more work” before significantly higher prices can be attained. Thus over the short-term we may see the price dip back below $67 towards the area of its 50-day moving average.
Oil stocks have had a great run, but are now at their maximum intermediate target and very overbought. We have been selling them into this rise in recent weeks and it is now thought prudent for traders still holding to take profits in anticipation of a reaction back across the long-term trend channel. While a throw over move above the upper channel line that might lead to a vertical spike cannot be ruled out, it is viewed as considerably less likely than a reaction setting in.
Clive Maund
support@clivemaund.com
June 27, 2007
Clive Maund is an English technical analyst, holding a diploma from the Society of Technical Analysts, Cambridge and lives in Copiapo, Chile.
Visit his subscription website at clivemaund.com .[You can subscribe here].
No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.
Copyright © 2003-2007 CliveMaund. All Rights Reserved.
Home :: Archives :: Contact TUESDAY EDITION
June 26th, 2007
© 2007 321energy.com
http://www.321energy.com/editorials/maund/maund062707.html
12bbbbb you are definitely right. Many longs have put everything they could in. I know I have. I closed out multiple positions to buy more in the twenties. At the same time there seems to be a large seller, maybe naked shorting, maybe both. If we dip too low, more buyers will come in so we may be stable in this area until more news is released, and it will be excellent news for longs. We all know of many positive things in the pipeline from production numbers, to increasing proven reserves, to Wilshire financing, to uplisting, to more lease acquisitions, to national exposure on WBR. People just need to be patient. GLTY
Hillzman. Everything you said is absolutely correct. And we will reach the promised land quicker. Keith has mentioned the age of his partners. They are much older than him. He is the young whippersnapper at 45 so to speak. LOL. This fact along with the artificial share price may have helped him decide on the Wilshire financing. And once again, he shows his smarts by it being non-dilutive. It is excellent for longs.
zguy This is why I used the word leverage in my post to Jagman when he talked about debt. The example you gave with the numbers is good also. It is a great thing for Hemi because we can act quicker and get to the promised land faster. If and when we are bought out, that miniscule (compared to assets) amount of debt will be negligible.
From Wikipedia, the free encyclopedia
In finance, leverage (or gearing) is using given resources in such a way that the potential positive or negative outcome is magnified. It generally refers to using borrowed funds, or debt, so as to attempt to increase the returns to equity.
Financial leverage takes the form of a loan or other borrowings (debt), the proceeds of which are reinvested with the intent to earn a greater rate of return than the cost of interest. If the firm's return on assets (ROA) is higher than the interest on the loan, then its return on equity (ROE) will be higher than if it did not borrow. On the other hand, if the firm's ROA is lower than the interest rate, then its ROE will be lower than if it did not borrow. Leverage allows greater potential return to the investor than otherwise would have been available. The potential for loss is also greater because if the investment becomes worthless, not only is that money lost, but the loan still needs to be repaid.
Lowman, You may be right, but as you said we will know later. Jim McBeth said it would be a loan using reserves as collateral. Then Wilshire in their pr spoke as if it were like a partnership. Worst case scenario we make very reasonable payments or sell oil to pay it down but we get to build out and drill at a much faster pace and prove up reserves that much quicker. If our latest acreage in Woodson is just equal to the reserves known, that ten million dollars is peanuts.
I agree and I might add short term/long term vision for the company
Most pinkies dont have the assets that would ALLOW them to have debt. With hemi's proven reserves $10m (from Wilshire)will allow great leverage for hemi to grow and grow quickly. It may cost $1M over the life of it to pay it down, but it will not be short term, which can be dangerous. Hemi is then using debt in a financially and strategically perfect way.And with that money hemi can drill and prove up another $.5Billion of reserves. That little bit of debt will then be a small item on the balance sheet. And all with no dilution.
The Energy Report
Phil Flynn
June 25, 2007
It's all well in Nigeria as peace and harmony reigns between the labor unions and the Nigerian Government. After four days the Nigerian labor strike came to an end pressuring oil prices in the early going. The strike over what else but petroleum prices was settled when the Nigerian government agreed not to increase the price of petroleum and to set up 2 committees to look into future pricing of petroleum.
Masood Farivar of Dow Jones says that the suspension of the strike in Nigeria comes as a relief to jittery world oil markets but it won’t lead to significantly lower prices. More than 24% of Nigerian production remains off line because of militant attacks over the past year and the bulk of it hasn't come back. Nigeria is still a hot spot but at least for today it looks as if it has cooled off.
The Financial Times reports that a report by Congress says that the Amaranth Hedge fund and its star trader Brian Hunter built up such big positions in the US natural gas market that they produced abnormally high prices. The report is raising the issue whether regulation has kept up with the huge amount of money and the over the counter market strategies of the new hedge funds. The issue is how Amaranth built up large positions in natural gas on the NYMEX and later on the ICE. Amaranth uses the ICE to avoid position limits on the NYMEX or did they use the ICE just to avoid delivery? Did Amaranth drive the price of natural gas or were they driven to the natural gas market because of strong fundamentals and the risk of a potential hurricane.
The Lunndberg Survey is back and says gas prices have fallen 11 cents in the last two weeks. Chicago is still the highest! The National average is $3.00.
The Department of Energy will be center stage! Look for crude to be up 2.0 million barrels, gas down 2.0 MB, distillates down 2.0MB and runs up 0.5%.
Sign up for the Phil Flynn Energy Blast. Just email me at pflynn@alaron.com or call me at 800-935-6487 to open your account.
We're long August crude from apprx 6870 - raise stop to 6850.
We're long August RBOB from apprx 21200 - stop 21400!
Buy August heating oil at 20200 - stop 19800.
We're long July natural gas from apprx 780 - leave stop at 730.
Have a GREAT day!
Phil Flynn is Vice President, Energy Analyst and General Market Analyst with Alaron Trading Corporation (www.alaron.com). Phil is one of the world's leading energy market analysts, providing individual investors, professional traders and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline and energy markets. Phil.s market commentary, fundamental and technical analysis, and long-term forecasts are sought by industry executives, investors and media worldwide.
PLACING CONTINGENT ORDERS SUCH AS "STOP LOSS" OR "STOP LIMIT" ORDERS WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS. SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.
Past performance is not indicative of
http://www.321energy.com/reports/flynn/current.html
Domestic oil (hmgp), Domestic Oil, Domestic Oil
Another example why domestics are more valuable and important. Thought it was Nigeria when I saw the headline. Al-Qaeda still wants to attack oil infrastructure around the world too.
YEMEN
Soldier attacks US oil workers
Hammoud Mounasser
Sun, 24 Jun 2007
A soldier with "emotional problems" opened fire on oil workers with a major US oil company, killing one and wounding six, including the local American boss, as they left an aircraft in a remote area of Yemen on Saturday.
Yemen's interior ministry said a female Indian oil engineer died in the attack, while California-based Occidental Petroleum Corporation said only that one of its subcontractors, a non-American, was killed.
A witness said the soldier began firing as a helicopter carrying company staff landed at an oil installation in a rugged southeastern area.
Also wounded were Oxy's American director for the Yemeni operation, two Britons including a security guard, as well as the helicopter's Tunisian pilot and Yemeni co-pilot, the official Saba news agency quoted a security source as saying.
Began shooting hysterically
The gunman, identified as Jameel al-Raai, began shooting in a "hysterical manner" at the Oxy installation he was assigned to guard, the ministry said.
He was then shot and wounded by fellow soldiers before being captured and was later deemed by a local official to be suffering from "emotional problems".
"Security authorities have started to interrogate the attacker about the motives of his crime," an interior ministry statement said.
In Los Angeles, Oxy spokesperson Richard Kline told AFP the soldier wounded seven people who had arrived on a chartered flight, and that one of them died of his wounds. He was unable immediately to confirm the man's nationality.
"As the passengers were disembarking the aircraft, shots were fired by a single individual in the direction of the de-planing passengers," Kline said, citing Oxy field personnel in Yemen.
One fatality
There was "one fatality, a non-American foreign national who was a subcontractor to Occidental," Kline said, adding that the six survivors were "in stable or good condition."
An Oxy security source in Yemen earlier said that a second person — a Filipino — was had died of wounds received in the attack. Hospital sources later said, however, that the man was alive and in critical condition.
The ministry said the attack occurred at Oxy's Block S-1 in the eastern province of Shabwah, a rugged inhospitable desert area.
Yemen, the ancestral homeland of Osama bin Laden and one of the poorest countries on the planet, has witnessed several attacks at oil installations in the past.
The authorities have been fighting a rebellion by Shiite Muslim tribesmen in the unruly north of the country and also face a separate al-Qaeda-inspired insurgency among its Sunni majority.
http://iafrica.com/news/worldnews/995489.htm
No Jagman I am not a flipper. I always take my seed money out of pinks at the first opportunity. I have stated this before. Then hemi became way, way too undervalued so I started averaging UP. It is unusual for me to actually have money in a stock (after having removed seed money) but hemi is not your normal pink sheet stock. Flippers sit at the computer day to day buying and selling blocks of thousands at differences of a penny. Your friend badge for one did that and mentioned it.
$$$$$OT$$$$$####
I dont need to be rich. I am pretty much retired at 50. I tutor during the week to pay the bills. Equity in my home. Title to my car. Work for myself, have no boss. I have about $50K worth of stamps if I decide to sell them. Hemi is a fundamentally strong stock in a great sector. I am still in the black even though I bought more in thirties and twenties because I was riding freebies. YOu are a smart investor. Why cant you see hemi for what it is. You thought .39 was the bottom, that is why you bought. I bought more in the thirties also. Like I said, be patient, stop thinking of it as a momo play and you will have less anxiety. You would be rich if you owned as much as LOwman or some of the other longs.
Yes, Jagman, you said you could always change your stance but you are still posting as someone who is in a hurry to flip instead of someone who RECOGNIZES that hemi is a LONG TERM play, not a momo play. No matter what you post, it does not really matter to me. As I have stated in numerous previous posts, I am here for the dollars. In a way it is amusing to find someone who wants to flip but finds themselves in a long term play, desparately trying to change the stock to fit what is in their investing philosophy,(for this stock, a pinkie!!), when in fact, for this stock, your philosophy needs to change. Just hold and you will profit.
GLTY REALLY.
In one sense, I hope not, I want more cheaper. In the long run we are in the multidollars. You are a savvy investor, according to Lowman, and I believe it. Why are you worried about short term when long term looks so promising??????????????
This can only be GOOD for hmgp.
World oil reserves used up faster than they're being found
As development costs rise, decline could affect prices, analysis finds
By JOHN PORRETTO
Associated Press
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The world's major oil companies replaced reserves at levels below 100 percent for the third straight year in 2006, even as costs to find and produce the key asset continued to rise, a new analysis shows.
Reserve replacements last year, excluding acquisitions and divestitures, were 91 percent, below the 92 percent replaced in 2005, according to a report released last week by the investment bank Bear Stearns & Co.
At the same time, the companies' finding and development costs rose to $13.63 per barrel of oil equivalent, the report said, a 28 percent rise from 2005.
Analysts typically say an oil company's reserves replacement should average more than 100 percent over a three- to five-year period to indicate growth.
"The major oils continue to record reserves in large blocks, but with less frequency," the report said. "The timings of these bookings causes swings in reserve-replacement performance."
Jeff Tillery, an analyst with Pickering Energy Partners in Houston, said falling reserves could have some effect on rising gasoline prices, particularly as world demand grows.
But, he noted, companies such as Irving-based Exxon Mobil Corp., Royal Dutch Shell and other majors produce a small portion of the world's oil and natural gas compared with government-controlled national oil companies.
The Bear Stearns report also noted that oil and natural gas production by the majors rose 4 percent last year from a year earlier. That number was lifted in part by acquisitions such as ConocoPhillips' $35.6 billion purchase of Burlington Resources, and Occidental Petroleum Corp.'s $3.8 billion takeover of Vintage Petroleum.
The report said finding and development costs continue to be influenced by the need to extract oil from more technically challenging areas, such as deeper waters and rugged terrain.
"Inflationary pressures stemming from a tight market for deep-water rigs, labor and materials also took a toll," Bear Stearns said.
Looking ahead, the investment bank said it expects reserve bookings to "remain lumpy" in 2007, and for replacements among the major oil companies to remain mixed. Over a period of five to 10 years, Bear Stearns said replacement-booking levels are likely to be in the 100 to 110 percent range.
"In other words, we have confidence that the exploration efforts being undertaken now will pay off in the near future," the report said.
Of some of the world's major integrated oil companies, Bear Stearns noted:
• BP was a top performer in 2006, and its project pipeline appears solid, as new developments in Angola and the Gulf of Mexico progress.
• Chevron Corp. has not fully replaced reserves since 2003, but showed improvement last year based on reserve additions in the U.S., Bangladesh, Kazak-hstan and elsewhere.
• Exxon Mobil should replace full production in 2007 with bookings from major projects in Angola, Nigeria, Qatar, Norway and Australia.
• Royal Dutch Shell has a portfolio of projects that could add meaningful reserves in coming years.
• Excluding acquisitions, Houston-based ConocoPhillips has a 10-year average reserves replacement of 95 percent, and reserve additions could lift replacements to 100 percent for 2007.
Let me take a wild, uninformed guess Hemi?