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Thought you would like that one. I find it better to never censure anything, as it will almost always backfire on you.
Everyone that posts makes a contribution, the tricky part is being able to discern the contribution. Whether to fade it or join the party. Always found an easy/lazy way to validate a choice is to find someone you completely disagree with and do the opposite. LOL Not insinuating anything here just stating a method. Works well in politics.
Compilation of key/important/interesting company emails.
http://www.investorshub.com/boards/read_msg.asp?Message_id=20038978
http://www.investorshub.com/boards/read_msg.asp?message_id=19547644
http://www.investorshub.com/boards/read_msg.asp?Message_id=19467814
http://www.investorshub.com/boards/read_msg.asp?message_id=19464704
http://www.investorshub.com/boards/read_msg.asp?message_id=19445230
http://www.investorshub.com/boards/read_msg.asp?message_id=19400189
http://www.investorshub.com/boards/read_msg.asp?Message_id=18917971
http://www.investorshub.com/boards/read_msg.asp?message_id=18731355
http://www.investorshub.com/boards/read_msg.asp?Message_id=18450637
http://www.investorshub.com/boards/read_msg.asp?message_id=18441825
http://www.investorshub.com/boards/read_msg.asp?Message_id=18149530
http://www.investorshub.com/boards/read_msg.asp?Message_id=17962004
http://www.investorshub.com/boards/read_msg.asp?Message_id=17956526
http://www.investorshub.com/boards/read_msg.asp?Message_id=17936306
http://www.investorshub.com/boards/read_msg.asp?Message_id=17894858
http://www.investorshub.com/boards/read_msg.asp?Message_id=17893254
http://www.investorshub.com/boards/read_msg.asp?Message_id=17569504
http://www.investorshub.com/boards/read_msg.asp?message_id=17354916
http://www.investorshub.com/boards/read_msg.asp?Message_id=17112474
http://www.investorshub.com/boards/read_msg.asp?Message_id=17099550
http://www.investorshub.com/boards/read_msg.asp?message_id=17023682
http://www.investorshub.com/boards/read_msg.asp?message_id=16317353
http://www.investorshub.com/boards/read_msg.asp?Message_id=16272696
http://www.investorshub.com/boards/read_msg.asp?Message_id=16135062
Original 4 part email from Keith to Lowman
http://www.investorshub.com/boards/read_msg.asp?message_id=15474237
http://www.investorshub.com/boards/read_msg.asp?message_id=15483929
http://www.investorshub.com/boards/read_msg.asp?message_id=15538011
http://www.investorshub.com/boards/read_msg.asp?message_id=15640987
Repost... Great stuff... Puts things into perspective.
Posted by: Al_Kan_1972
In reply to: None Date:5/5/2007 11:02:52 AM
Post #of 13214
Email from Keith and he is steamed.
Xxxxxx
Yes it was surprising the pull back we had, no insiders or the company is selling stock. I don’t think people have really thought through what was said in the PR. We can sit around up there and wait for the weather to break or we can move up projects and do some repositioning of people and equipment and keep moving forward in KS. This pink sheet trading nonsense is really starting to become more of a problem than a benefit, and I have had about enough of it. I said we didn’t want to uplist to a larger exchange and still do not want to, but if this is what the pink sheet future holds for us on the pinks, then maybe we don’t need to be on the damned exchange and uplisting maybe should be considered in our best interest, because at the moment isn’t doing anything but freaking out long term and short term shareholders and I am getting tired of hearing the sky is falling because of it and negative sentiment, when there is no basis for it.
Basically being an armchair CEO is easy, because if they make a mistake it doesn’t count and speculation continues, but if I do internally it does count. The only thing I can say is if they don’t like the way the company is being run, then it is their investment and they need trade however they feel is right for themselves, but one thing I will not do is jeopardize what we have at hand, at doing disclosure before the time is right. Really it is that simple.
The leases? Do you realize we have done years of research in that area? I am not going to do any name dropping but 2001 I met with an old oilman over 90 years old, he was one of the old wildcatters that actually worked the rigs as a teenager, founded his own company, then proceeded to find and develop many of the prolific fields in Woodson County and the state of KS. The legacy he left, is one of the largest private independent oil companies in Kansas... he is in the KS oilman hall of fame. This man was kind enough to open up drilling records he actually noted when he drilled… stuff the KGS or anyone else has, he wouldn’t give me copies but, I took notes a lot of notes and as Metallurgist will tell you, he had tiny a glimpse of our "official" research when he came to the office. All of this old gentleman’s data has been referenced cross referenced and thought through for years and plans were made around both sources of data.
Bottom line? We are in the final phases of leasing, of course I intentionally down play the magnatude of it, in the near term we will not be talking in the terms of acres but square miles of land, exactly where years of research has already been done, we know what to expect. Think about it if I or Craig disclosed all the other information people are demanding at the moment, not only will years of research be at risk, but if a bidding war breaks out we could very easily find these leases getting away… the same people that are demanding us release all this information would then be the same ones screaming… ohhhh they lied to us or some such other BS.
Am I sounding irritated? Good!
Keith A.
Interesting. 200 acre lease for sale @ 200,000. Wonder what 8,000 acres of leases would fetch??
Oil Leases for Sale in Southeast Kansas - $200000
--------------------------------------------------------------------------------
Reply to: sale-345766478@craigslist.org
Date: 2007-06-06, 2:45AM CDT
Four leases for sale in Woodson County Kansas. Price includes 8 producing wells, 2 disposal wells, a working pulling unit, and HUGE potential for drilling new wells on 200+ acres. If interested, contact jodidible@yahoo.com for more information.
Location: Southeast Kansas
it's NOT ok to contact this poster with services or other commercial interests
PostingID: 345766478
http://houston.craigslist.org/bfs/345766478.html
Posted by: lowman
In reply to: None Date:5/10/2007 9:08:33 PM
Post #of 13025
Email from Keith:
Low,
Thanks for the email, I agree perhaps it is time to say something about what is going on.
This with Wilshire has been ongoing, since February. They had representives on the site when we drilled the Hemi 2, they were looking for a REAL oil company they could hang their hat on. So this is not an over night thing going on and they have conducted extensive due dilligence before deciding Hemi is the company they want to represent out of all they looked at. I had been on the fence about committing to this, but last weeks trading, scared shareholders made us decide on Monday, because of all the share holder discontent it became clear the pink sheets are not right for us anymore, so I met with Mr. McGowan late Monday night and we decided to move forward, with Wilshire and their syndication. To be honest I dont know what exchange yet, but leaning towards the AMEX, yeah we will qualify. Personally I still prefer being bought out.
Now I want this made clear, I cannot and will not tell an investor how, what or where to trade. Having the shareholder talk to Wilshire about a stock account only one of the things suggested and it was due to all the issues we were having with the DTC headaches and crazy trading. Simply giving the shareholders an option and consider contacting Wilshire about opening an account, because Wilshire has a vested interest in us and direct concern with our PPS, if we do this upgrade, in otherwords they act as our protector, between now and then. An account with them is merely an option and the shareholders have to do what they feel is right for themselves, it never hurts to talk or have options.
You remember yesterday less than 24 hours ago, how negative people were? The company is selling shares, insiders are selling shares, the sky is falling, blah blah blah, fear feeding on fear... just business as usual in the office, like I said so much of this negativity was baseless, but fear does that. We have had things in the works for a very long time and many things going on, which I cannot disclose yet. Wilshire being one of them, we still have a long ways to go before an up listing, like auditing, SEC legal work and we are trying to bring in the oil patch version of the dream team. If any of this answers why we relocated to the EXCHANGE BUILDING. An IPO is intensely complicated and time consuming, so I chose not to say anything... I dont want the shareholders acting like a buncha kids on a road trip with the "are we there yet? are we there yet?" Simple answer, this is the real world, its a long trip and we get there when we get there, that is the best I can say.
News? I dont know... whenever things warrant a PR and whatever crosses the finish line first gets the news, we have many things in play and I honestly dont know what or when, but news is never far off.
Keith A.
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L~
"'took me 3 long years to make a million bucks overnight!" -anon.
Luck comes to those most prepared for it!
CSMG, et al; - $35.00 by 10/31/08
http://www.investorshub.com/boards/read_msg.asp?Message_id=19547644&txt2find=amex
Production reversing and heading higher.....................
Woodson County--Oil and Gas Production
http://www.kgs.ku.edu/PRS/County/tw/woodson.html
Humboldt-Chanute--Oil and Gas Production
http://abyss.kgs.ku.edu/pls/abyss/oil.ogf4.IDProdQuery?FieldNumber=1000146306
Something for Ovidius to ask questions about..............
Haas Petroleum LLC leases in Woodson County....
http://abyss.kgs.ku.edu/pls/abyss/oil.ogl5.OpLeases?f_id=1033431129
Recent permit activity in Woodson County since HEMI RENO.....
Updated Woodson County..............
Recent Montgomery County Gas Production
Coffeyville-Cherryvale Field--Oil and Gas Production
State, County, Lease info taken from PR's and Board DD.....
KANSAS
Woodson County:
The independent geo report estimates 7.2 million bbls of oil for the 5 leases in Woodson Co. Hemi also has another 1440 acres in Woodson Co. and believes it is comparable, for a total of 14+ million bbls of oil. Hemi Energy Group, Inc.'s first new oil well on our Woodson County leases confirms our information of this lease's geological formation reserves and also information from the reserve report about blanket formations.
Hemi Energy Group, Inc. (Pink Sheets:HMGP) has entered its near term final phase of lease acquisitions in Woodson County, Kansas. Hemi is in the final phase of acquiring additional leases with the majority of lease acreages being continguous to the current Woodson County leases. These additional leases, as completed, will more than double the size of its operational footprint in Woodson County.
Montgomery County:
Hemi Energy Group, Inc. (Pink Sheets HMGP) is currently exploring options to bring the one shut-in gas well on line for future gas production on its Montgomery County lease near the town of Cherryvale, Kansas. Hemi Energy has 100% working interest (net revenue interest of 80%) in this lease. Hemi believes this well will produce over 200 MCF to as much as 500 MCF per day based on detailed history of the lease from the pumper and information sharing with a local Kansas gas operator and producer.
We are discussing the possibility for drilling a new joint venture gas well with this local Kansas operator because of the value of these multiple gas production formations... This operator could provide turnkey drilling of the gas wells, with all necessary equipment and personnel to expedite the completion process to produce the wells.
The two reworked oil wells on the front of the Montgomery County lease are producing combined total of 25 bbls per day. The tank capacity on the back of the lease is currently being increased so that we can bring the four additional mature reworked oil wells on line. Therefore, the production for the full month of March from all six reworked oil wells will clearly exceed our February projection of 1500 bbls of oil. The shut-in gas well on this lease and the value of the two gas zones on the lease will make developing the gas formations financially obvious. Hemi Energy has 100% working interest (net revenue interest of 80%) in this lease near the town of Cherryvale, Kansas.
TEXAS
Sabine County:
Hemi Energy Group, Inc. (Pink Sheets: HMGP) acquired three adjacent oil and gas leases with a total of 360 gross acres in Sabine County near the town of Hemphill, Texas. Natural gas prices are currently more than two times higher than at the time the leases were purchased in 2003. The geological formations under Hemi's leases, known as James Lime, Cotton Valley and Travis Peak, are the same formations that are under the major gas field that is now only approximately four miles to the north in Shelby County. In the past these leases have had two producing gas wells, but because of economic reasons they were abandoned in the 1970s. Major oil companies have been developing and producing these natural gas fields for over five years which started approximately 15 miles away and have been steadily trending toward the Hemi leases. Currently new gas wells are being drilled approximately 4 miles north. The width of the proven gas reserves in these geological formations are narrow, being only 5 to 10 miles wide. The average gas well in this major gas field in Shelby County typically produces over 2,000 MCF per day 2(mMCF) or gross revenue of approximately $360,000 per month. These gas wells and gas fields have common characteristics of a slow rate of decline in gas production and have an economically viable life of over ten years...
NEW MEXICO
Chaves County:
Hemi Energy has approximately four thousand acres on a lease in southeastern New Mexico near Roswell in Chaves County. This lease has historic oil production. There have been new wells drilled by other oil companies that are currently producing, and new reserves being explored in Eddy and Lea County adjacent to and south of Chaves County.
NORTH DAKOTA
Burke and Divide Counties:
Hemi Energy Group, Inc. (Pink Sheets: HMGP) The company acquired two oil and gas leases with a total 640 gross acres divided by the county line of Burke and Divide Counties, in northwestern North Dakota in 2002. Current natural gas prices are now almost three times higher than at the time the lease was purchased. The three other leases adjoining Hemi's lease on three sides have five producing wells owned by other oil companies which are within one mile and less of the Hemi lease. Three of these wells have been completed after Hemi acquired its lease and development of other reserves is ongoing.
Each one of the five producing natural gas wells adjacent to the company's lease has a common characteristic of an approximate revenue of $4 million or more over an economically viable life of ten/fifteen years at current natural gas prices.
Lowman....According to the Journal, geologists estimate that there might be as much as 200-400 billion barrels of oil in an area that covers parts of Montana, North Dakota, and Canada, known as "The Bakken." You got that report on Richard Findlay's 300 wells that are producing 48,000 bopd? Average 160 bopd per well? Hemi's N.D. leases are right there in the heart of it all. This lease is right in the heart of the Bakken formation, which the DOE themselves have stated is the largest oil find in the U.S. in 56 years.
WYOMING
??????????????????????
The Trouble With Preliminary Agreements
Those ‘nonbinding’ preliminary agreements may be more binding than you think
Whether a binding agreement exists is determined by the objective words and deeds of the parties,
rather than subjective evidence of intent. Adjustrite Systems, Inc. v. GAB Business Services, Inc., 145 F.3d 543, 547 (2d Cir.
1998). Four primary factors are used to determine whether the parties to a preliminary agreement intended a fully
binding and enforceable agreement:
1) Whether there has been an express reservation of the right not to be bound in the absence of a formal contract.
This is the most important factor, particularly when express reservation exists. However, the fact that an agreement
contains no express reservation of the right not to be bound is not dispositive.
2) Whether there has been partial performance of the preliminary agreement. This factor looks to whether actual
performance of agreement has occurred, as opposed to a party merely preparing to perform or taking action in
purported reliance on the agreement.
3) Whether all of the material terms of the transaction have been agreed upon. Frequently, it becomes apparent
that not all of the material terms have been addressed when the parties thereafter negotiate a formal contract.
However, when nothing suggests that the contested preliminary agreement contained open terms, it will suggest the
parties’ intention to create a “binding” agreement.
4) Whether the agreement at issue is the type of contract that is usually committed to formal writing. This factor
depends on the specific industry the preliminary agreement covers. If, in the relevant business community at issue,
agreements are ordinarily committed to sophisticated, formalized contracts complete with the standard, then the
enforceability of a preliminary agreement comes into question. If, however, it is common business practice that for
agreements to be reached quickly and before every minute detail is hammered out between the parties, then parties
could be contractually bound by a preliminary agreement.
http://www.gtlaw.com/pub/articles/2006/kaplanr06b.pdf
http://www.nanosft.com/igc/loi.html
Contracts
--------------------------------------------------------------------------------
Letters of Intent
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BY JOSEPH VALOF
The letter of intent can provide the business person with a vital bridge between mere discussions and a binding contract. However, the huge damages award under the infamous Pennzoil v. Texaco case of the last decade demonstrated some of the pitfalls inherent in this commonly used business tool. The following should help your company to avoid those pitfalls.
Purpose
The main purpose of a letter of intent (sometimes also referred to as a “Letter of Understanding” or “Memorandum of Understanding”) is to facilitate the start of a business deal or project between the parties involved by identifying the key business and contractual understandings that will form the basis of the final contract.
Drafting Issues
Binding vs. Non-binding. A letter of intent is usually intended to be non-binding, but also may prove “binding” if the parties fail to so state, or if its language indicates a conflicting purpose. Where the letter of intent stays silent on whether it is non-binding then, generally, it is presumed to be binding and enforceable in the courts.
Confidentiality. A separate confidentiality agreement should be executed between the parties if confidential information is to be exchanged during the initial discussion stage. Such an agreement will impose binding obligations of confidentiality that survive the non-binding letter of intent, and may be attached to the letter of intent as an Exhibit.
Brevity. It is easy to say too much in a letter of intent out of a misguided zeal to cover all bases. For example, statements such as: “agree to bargain”; “make every reasonable effort to agree upon and have prepared as quickly as possible a contract providing for”; and “negotiate in good faith” each have caused a court to disregard a statement of non-binding intent, and rule a letter of intent to be binding on the parties. Thus, as a general rule, brevity is always recommended, and it is better to include just enough details to get the parties started.
In one recent case, the letter of intent clearly stated: “This letter of intent is not intended to create, nor do you or we presently have any binding legal obligation whatever ” But, in the very next paragraph the following statement was made: “[H]owever, it is our intention, and we understand, your intention immediately to proceed in good faith in the negotiation of such binding definitive agreement.” Schwanbeck v. Federal Mogul Corp., 412 Mass 703 (1992). The court held that the word “however” coupled with the intention to “proceed in good faith” created an obligation independent to the sweeping disclaimer that the letter of intent was non-binding.
Form Letter of Intent
The following might serve as a guide for your own letters of intent:
Mr. John Smith
[XYZ company address]
Dear Mr. Smith:
Purchaser intends to purchase, and XYZ intends to sell certain computer hardware. The purpose of this Letter of Intent is to summarize our discussions to date and to confirm our respective intentions with respect to the proposed transaction, as follows:
Purchaser intends to purchase the Model 100 Computer from XYZ for the lower of $10,000 or whatever better price XYZ is able to extend to Purchaser.
Purchaser has paid a $1,000 deposit to XYZ, which shall be promptly refunded in the event negotiations are terminated for any reason.
Purchaser and XYZ intend to conclude a binding agreement on or before January 30, 1996. In the event that a contract is not signed on or before such date for any reason or no reason, Purchaser or XYZ each shall have the right to terminate the negotiations without liability.
This is a letter of intent only. It is not intended to be, and shall not constitute in any way a binding or legal agreement, or impose any legal obligation or duty on either Purchaser or XYZ, Inc. If the foregoing reflects our mutual statement of intention, please sign and return the enclosed copy of this letter.
Sincerely,
Purchaser
Agreed:
By:
Title:
Date:
Comment: Avoid overstating your case in a letter of intent because, if you say too much, you may find yourself committed to more than you bargained for.
Mr. Valof will discuss another pre-contract tool in our next issue, that of the “teaming agreement,” whereby two or more contractors bind one another to bid jointly for a government contract.
--------------------------------------------------------------------------------
© ASSOCIATION OF INDEPENDENT GENERAL COUNSEL 1996; (all rights reserved). This article is not intended as legal advice. Consult a qualified attorney for assistance concerning a specific issue or problem.
http://www.aigclaw.org/tic52.html
Good post from another O&G Board...................
Posted by: Argyll
In reply to: None Date:5/6/2007 8:08:34 PM
Post #of 10147
Straight Talk from T. Boone Pickens
By Bill Moore
http://www.evworld.com/article.cfm?storyid=1220
"I think America is getting acquainted with the problem," T. Boone Pickens replied to Will Kleindienst, the former mayor of Palm Springs as they sat in two comfortable overstuffed chairs on the stage of the 2007 AFVI conference and expo in Anaheim, California. This conversation between two long-time friends chatting amicably about Pickens' views of the state of the world repeated a theme begun by Neel Kashkari, the morning's first keynote speaker from the U.S. Treasury Department; that the America is facing a serious crisis.
The problem Pickens referred to is the energy one, which hangs like the proverbial "sword of Damocles" over America, the nation that consumes 25 percent of the world's oil and produces a quarter of the planet's greenhouse gases, yet constitutes just five percent of the population.
"The problem is we are importing sixty percent of the oil into the United States," he commented. In his slow, folksy, Oklahoma drawl he related how he had once gone hunting with two U.S. Senators and Vice President Dick Cheney . Afterwards, Pickens had bought dinner and talked about energy and how precarious the U.S. position is. He had pointed out that 75 percent of the world's oil is used in transportation, which apparently came as a complete surprise to one of the Senators, who repeated it so he was sure he hadn't misunderstood.
"You got it right," Pickens confirmed.
"There's no question that's worth remembering," the amazed Senator remarked.
Pickens was dumbfounded, having assumed anyone from this august body would know this. He didn't say how Mr. Cheney responded, though he did remark the Vice President a crack wing shot and a safe hunter, though Pickens did say he preferred to observe the hunt from the safety of the truck cab, which he was driving.
That same Senator was probably also oblivious to the fact that the world, Pickens continued, produces 85 million barrels of oil a day and that multiplied by 365 days calculates out to be more than 30 billion barrels of oil a year.
"You take 30 billion barrels out of the world's reserve base and we have not replaced 30 billion barrels since 1985. You're talking about twenty years. You keep drawing down on the world reserve base... and it is happening because you can't find big oil fields anymore. They're just not out there to find."
"Some believe that you just pour more money into the ground," Pickens continued, " and the oil will be there at some price, which is untrue.... We have peaked at 85 million barrels."
Kleindienst, who is an EV World reader, asked him what he thought of all the talk about American energy independence. Pickens answered that he is advising the current Republican front runner for President, Rudi Guiliani that he shouldn't talk about energy independence, because it will only lead to the next question, how do you plan to achieve it? Pickens thinks it's a hollow promise, that America can't achieve energy independence because we are so heavily dependent on oil imports. Clearly referring to the peak oil phenomenon, he warned Guiliani that the energy problem is "going to get more intense" for the next U.S. President. "It's easy today... energy [concerns are] going to get much bigger."
"We buy a lot of oil from our friends. We also buy a lot of oil from our enemies; that's what I'd like to cut off, and just buy from our friends. If we didn't buy oil from Canada, we'd wreck their economy.... We've got in a spot where we're... intertwined with both Mexico and Canada and others that we buy from: Norway, Nigeria... other places around the world that are not our enemies. We're going to always have to buy oil..."
He elaborated on the current realities of the market. The two largest oil producers in the world are Russia and Saudi Arabia, which -- he pointed out -- have been holding private talks, presumably to discuss how high a price they can charge for oil without sending the world into a recession.
"But the Russians are also trying to form some kind of a relationship with Iran and the Russians and Iranians are the two largest [natural] gas producers in the world. Where do we (the United States) fit in this whole thing? We're the largest importer for oil, is where we are and the second largest importer is China. So, here you look at the line up of where you stand in this whole thing and we're at the bottom of it."
Looking around the conference hall, Pickens observed that he believes that every one of the various alternative fuel technologies are going to get a chance to play a role as America looks for ways to meet its energy and transportation needs. He noted that he started "selling this idea" of the importance of alternative energy twenty years ago.
"In 1988, I went out with a pitch that natural gas was cheap, it was cleaner and it was domestic. Nobody heard but one thing out of that: cheap. They didn't care that it was cleaner. They didn't care that it was domestic. They were only focused, if they were focused at all, on it's a cheaper fuel and cleaner than diesel."
In 2007, the landscape has changed completely. Pickens said that politicians and policy makers on the American east coast just last week are now saying that their region is gong to have to start emulating California in terms of its energy policies and use of alternative fuels.
No one has ever asked why we [Americans] use five times as much oil as the rest of the world, he pointed out. "That question is going to be asked more and more. There's no question, but we are going to have to reduce our energy [consumption]."
Queried by Kleindienst what he would do if he were the next energy secretary -- and Pickens joked that he'd insist on being called 'czar' -- he replied that the country is going to need every renewable energy source it can muster, including wind power, which while he's not a fan of the big turbines for esthetic reasons, he is now re-invested in it after an earlier abortive venture in the business.
"Wind is going to be a big deal," he commented. "You're going to have solar, you're going to have wind. You're going to have biodiesel. You name it, you've got it," he drawled. He also said that as energy 'czar' he'd raise the price of gasoline, working to establish a common, worldwide price for gasoline, just as there is a largely global price of oil. He said people who want their SUVs will be able to have them, but it's going to cost a lot to run them.
He would take the revenues from the increased price of a gallon of gasoline, which would be comparable to the price Europeans have been paying for decades, and invest it in alternative energy, while also offsetting taxes elsewhere to help ease the burden, but he added that the only way we can kill demand for gasoline is to raise the price, painfully.
Kleindienst asked him what his views were on global warming and he replied that because he's a geologist by training he wouldn't normally be of a mind to believe it, but for him the evidence if overwhelming.
"It is a credible threat?" Kleindienst asked?
"Yes sir," Pickens replied.
He explained that it took a century for mankind to use its first trillion barrels of oil. It will take just sixty years to use the next trillion", which he agreed will be harder to extract and be more expensive. "So what's going to happen is you're going to have to go to alternatives." While dismissing oil shale as a non-viable option, he did see the tar sands of Alberta as being viable-- producing a million barrels a day of crude today -- and recommended Suncor, a big developer of this resource, as a good investment he's owned for the last decade. But he also sounded a cautionary note.
"The world can't continue to run on hydrocarbons."
"The infrastructure for the production of oil in the United States is old, old, old. We're producing five million barrels a day and we peaked in 1973 at 10 million barrels, so we're producing half of what we did."
He observed that the average oil well in America produces 5 barrels of oil a day compared to Saudi wells that produce 5,000.
"We're a marginal producer. We're a stripper. That's what you call stripper production. But the infrastructure is old. It's old. The refineries. Everything is old here," he repeated, adding however, that newer components have been added over the years, but the underlying system is outdated.
"Don't get the idea that Alaska is the solution to the shortage of oil in the United States. Remember, we're using 21 million barrels a day... and the pipeline on the North Slope will carry two million barrels a day. That's it. And don't get any ideas that we're going to have a second pipeline any time soon. You take the Arctic [National] Wildlife Refuge... open up ANWR to solve the problem of the lower 48... that's baloney. We're producing about 700,000 barrels of oil a day down that pipeline. It's declined from two million to 700,000 barrels. If we could fill it up, we could produce two million barrels. So, Alaska is not the solution..."
In discussing how the conference attendees can help influence Congress, Pickens responded, "I can tell you that the problems are going to come so fast and the price of gasoline is going to go up so fast here within the next twelve months, they are going to start catching on real quick that you're going to have to do everything you can to cover the base, and you're also going to realize that the supply [of oil] is so tight...
"Matt Simmons, a very, very bright guy that knows a lot more about this business than I do, and Matt Simmons last week sent me an.. email that said the [petroleum supply] system is so tight now. Hhe said that storage is down... inventories around the world are coming down so fast now... everything is getting so tight... that you're going to see oil priced above $80 a barrel [this year]. And he said that if you had some kind of hiccup in the system it could go to $100 faster than a hot knife through butter.
"And I believe that and I think that when that happens, this thing is going to get so serious so fast that you're going to get the help out of Washington. You're going to have these politicians running for president, they're going to start talking about, 'We're going to have to do this, this and this, and all of it is going to help us, us, us in this room. I really believe that's going to happen."
http://www.investorshub.com/boards/read_msg.asp?message_id=19415673
Very LARGE map of Oklahoma Oil and Gas divided into sections and counties. Very nice.
http://www.petrodatasource.com/images/maps/Oklahoma-Map_Large.jpg
Oklahoma Oil and Gas Production and Infrastructure
Leases are in Creek and Rogers Counties which are areas of significant oil and/or gas production and Major oil fields.
Oklahoma Quick Facts:
Oklahoma is one of the top natural gas-producing States in the Nation.
In 2005, 17 of the 100 largest natural gas fields in the country were found in Oklahoma.
Oklahoma has five petroleum refineries and ranks among the top 10 States in distillation capacity.
Cushing, Oklahoma, is the designated delivery point for NYMEX crude oil futures contracts.
The Oklahoma State Legislature created the Commission on Marginally Producing Oil and Gas Wells in 1992 to keep State production decline to a minimum.
http://tonto.eia.doe.gov/state/state_energy_profiles.cfm?sid=OK
More documents......
More recent well info links...........
http://imaging.occeweb.com/OG/Well%20Records/002CE676.pdf (oil)
http://imaging.occeweb.com/OG/Well%20Records/002CE67A.pdf (oil and gas)
http://imaging.occeweb.com/OG/Well%20Records/002CE67B.pdf (oil)
http://imaging.occeweb.com/OG/Well%20Records/002CE672.pdf (oil)
http://imaging.occeweb.com/OG/Well%20Records/00298963.pdf (oil)
Montgomery County................................
Click in the geologic map to zoom in and view more detail.
http://www.kgs.ku.edu/General/Geology/County/klm/montgom.html
Montgomery County:
Hemi Energy Group, Inc. (Pink Sheets HMGP) is currently exploring options to bring the one shut-in gas well on line for future gas production on its Montgomery County lease near the town of Cherryvale, Kansas. Hemi Energy has 100% working interest (net revenue interest of 80%) in this lease. Hemi believes this well will produce over 200 MCF to as much as 500 MCF per day based on detailed history of the lease from the pumper and information sharing with a local Kansas gas operator and producer.
We are discussing the possibility for drilling a new joint venture gas well with this local Kansas operator because of the value of these multiple gas production formations... This operator could provide turnkey drilling of the gas wells, with all necessary equipment and personnel to expedite the completion process to produce the wells.
The two reworked oil wells on the front of the Montgomery County lease are producing combined total of 25 bbls per day. The tank capacity on the back of the lease is currently being increased so that we can bring the four additional mature reworked oil wells on line. Therefore, the production for the full month of March from all six reworked oil wells will clearly exceed our February projection of 1500 bbls of oil. The shut-in gas well on this lease and the value of the two gas zones on the lease will make developing the gas formations financially obvious. Hemi Energy has 100% working interest (net revenue interest of 80%) in this lease near the town of Cherryvale, Kansas.
Gas Storage Field--Liberty North
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Field name: Liberty North ; Operated by UCG Storage, Inc.
Located in: Montgomery County
Reservoir discovered: 1910 ; Year Activated: 1952 ; Active?: Yes
Storage Type: Depleted Reservoir
Original Contents: Gas ; Original Pressure: 200 (psig); Original reserves: 4500 (mmcf)
Formation Name: Squirrel Sand
Storage Lithology:
Gross Thickness: 60 (feet)
Trap Type: Structural Trap
Formation Depth Maximum: 470 ; Minimum: 420
Injection or Withdrawl Wells: 28
Observation, Pressure Control Wells: 6
Compressor Horsepower: 3450
Pipe Diameter Maximum: 12 ; Minimum 3
Base Gas Volume: 1500 (mmcf)
Maximum Developed Gas Volume: 3000 (mmcf)
Maximum Storage Pressure: 220 (psig)
Maximum Daily Delverability: 35000 (mcf)
Maximum Designed Daily Volume: 30000 (mcf)
Annual Cycling Capability: 1
Undeveloped Capacity: 0 (mmcf)
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Kansas Geological Survey
Comments to webadmin@kgs.ku.edu
URL=http://abyss.kgs.ku.edu/pls/abyss/oil.ogf4.GasStorage
Programs Updated Nov. 2004.
General field info courtesy American Gas Association.
Gas Storage Field--Liberty South
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Field name: Liberty South ; Operated by UCG Storage, Inc.
Located in: Montgomery County
Reservoir discovered: 1910 ; Year Activated: 1948 ; Active?: Yes
Storage Type: Depleted Reservior
Original Contents: Gas ; Original Pressure: 200 (psig); Original reserves: 500 (mmcf)
Formation Name: Squirrel Sand
Storage Lithology: Sandstone
Gross Thickness: 50 (feet)
Trap Type: Structural Trap
Formation Depth Maximum: 550 ; Minimum: 500
Injection or Withdrawl Wells: 12
Observation, Pressure Control Wells: 9
Compressor Horsepower: 135
Pipe Diameter Maximum: 6 ; Minimum 3
Base Gas Volume: 164 (mmcf)
Maximum Developed Gas Volume: 600 (mmcf)
Maximum Storage Pressure: 185 (psig)
Maximum Daily Delverability: 1000 (mcf)
Maximum Designed Daily Volume: 1000 (mcf)
Annual Cycling Capability:
Undeveloped Capacity: 0 (mmcf)
Comments: ORIGINAL_PRESSURE_PSIG value of 200 is an estimate.
--------------------------------------------------------------------------------
Kansas Geological Survey
Comments to webadmin@kgs.ku.edu
URL=http://abyss.kgs.ku.edu/pls/abyss/oil.ogf4.GasStorage
Programs Updated Nov. 2004.
General field info courtesy American Gas Association.
http://abyss.kgs.ku.edu/pls/abyss/oil.ogf4.GSPage?f_kid=1031708802
Gas production is growing exponentially in Montgomery County
Woodson County Oil and Gas Fields -vs- Montgomery County Oil and Gas Fields.....
Looks like the best is yet to come. Take a look at that Cherryvale Formation. Holy Crap!!
Next post will show that the gas production is growing exponentially in Montgomery County
Woodson County Oil and Gas Fields
Montgomery County Potential.............
County/Lease/Wells........................
Earlier dd.............
For newer WRNW investors. Oklahoma State Records for WRNW wells.....
http://www.investorshub.com/boards/read_msg.asp?message_id=18422187
http://www.investorshub.com/boards/read_msg.asp?message_id=18422450
http://www.investorshub.com/boards/read_msg.asp?message_id=18422758
Well Renewal Operator# 21782 for following posts.
http://www.investorshub.com/boards/read_msg.asp?message_id=18381250
http://www.investorshub.com/boards/read_msg.asp?message_id=18381301
http://www.investorshub.com/boards/read_msg.asp?message_id=18381386
http://www.investorshub.com/boards/read_msg.asp?message_id=18381488
http://www.investorshub.com/boards/read_msg.asp?message_id=18381520
http://www.investorshub.com/boards/read_msg.asp?message_id=18381583
Possible inexpensive compromise to full uplisting........
Low cost upgrade from pinksheets..........
http://www.otcqx.com/otcqx/home
http://www.otcqx.com/otcqx/docs/OTCQXBrochure.pdf
News visual..........
Seems like worst case scenario, when these two aquisitions go through, with the current state of the O&G biz, they will have more work than they ever could do. BTW, Rees is an attorney active in the M&A business. One would think what is happening now has been shouted since he became CEO.
More pictures.................................
Cementer's was established in 1960 by Everett W. Palser and purchased in 1999 by Mr. Palser's daughter and son-in-law, Jack and Rose Stoller.
For over forty years Cementer's Inc. has provided cementing services for oil, gas and water wells.
Today, Cementer's Well Service, located in Greeley Colorado, is one of the largest independent cementing service companies in business.
We offer excellent surface and production casing services, and plug to abandon wells throughout Colorado, Nebraska and Wyoming.
http://www.cementersinc.com/history.html
Company picture.............................................
OT..........................................
Used to work, in my younger years, at a restaurant in the Woodlands and Mr. Mitchell would helicopter in and come to The Glass Menagerie and have a bowl of lobster bisque and then leave for his operations in the Barnett Shale during the early years. He ran Mitchell Energy and pretty much created The Woodlands aka "The Livable Forest" just north of Houston. In a twisted kind of humor, many of the workers would mistake his helicopter for immigration, and a mass exodus across the golf course would ensue, and take hours to restore back to normal.
As they say a picture is worth a thousand words. I've lived in Ft. Worth for 21 years.
And unlike any other time the O&G activity here is indescribable. There are more wells in the city limits and the metroplex than seem to be out in the sticks. Any company serious about O&G is in Ft. Worth. Great strategic move in more ways than we will ever know. (little red dots are gas wells)
Thanks for the kind words, but Xtrapink found this nice info.
earlier.
http://www.investorshub.com/boards/read_msg.asp?message_id=19086208