Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
SHAMEFUL
A poster of unquestioned integrity along with two or three other investors freely gives of his time and the expense to make an onsite visit to Kansas and Texas.
They could have gone to Vegas or anywhere else they liked.
And not just visit but take the time to be OUR eyes and ears, giving very credible and detailed information.
They were under no obligation to do this.
This speaks volumes about the characters of these investors, people who deserve our respect and gratitude.
Contrast this with any investor, who, as far as we know never calls the company, never visits, never shares positive information and mostly just bashes the company.
Not attacking anyone or naming names, not violating terms of use in any way, just showing my appreciation for any investors who spend their time and money to help out this investment community.
Lions and tigers and bears, oh my. Hurry up and sell before it is too late. LMAO
This can only increase demand for oil in a region that is already growing at double digit levels annually.
Makes domestic oil companies like hemi that can get at the known reserves that much more valuable. Domestic oils with the ability to exploit mature wells are the place to be. IMHO
http://news.yahoo.com/s/ap/20080110/ap_on_bi_ge/india_ultracheap_car
Big Mur that is an excellent point.
I believe it is a bit dramatic to say " God forbid mils per penny".
The price we have endured is the cost of the flood and repair.
In the long run, a year delayed, nothing has changed with Hemi. The pumping of oil from easily accessed deposits is on track, the expansion into Texas, and perhaps other states, the continued proving up of reserves, the move to DFW for corporate offices, the expansion into subsidiaries like Sabine, the partnership, on some level, with other entities for lease rights or well operations.
The last time I checked Keith's expertise, knowledge and archive were not washed away in the 100 year flood and China and India have not started using alternative energy and SUVs seem to be everywhere.
It was the uncertainty of the damage and the degree of the recovery that contributed to the BOTTOM that we saw. It was this uncertainty that made Hemi a basher's paradise.
Well, even Andy Warhol would say, if he could, that the fifteen minutes are up for those that do not realize that, Hemi is back on track and still within the long term parameters that were laid out.
The philosopher Neitchze(sic) said "That which does not kill me makes me stronger."
Hemi is standing on a stronger foundation now than before the Kansas meterological disasters.
JMHO of course.
It was a hundred year flood.
And with the acquisition of the Sabine Trust and the operations in Texas, Hemi is no longer putting all eggs in one basket.
All in all, I think that all of the positive expectations that buyers have had, will come to fruition, just delayed.
GLTY.
And just to piggy back on zguy's excellent analysis. Keith and Craig can take deferrment on salaries, based on their pay,they already do.
And with the goodwill Hemi has, which is well known, Keith is probably able to defer payments, if necessary, if he chooses.
I am sure he would be considered a great credit risk with the companies Hemi deals with.
People in business realize that they are all tied to one another's fortune.
What good does it do to hurt Hemi for the short term over a relatively small amount of money,as a driller, or refinery or leaseholder, when you can see that it is going to be worth hundreds if not thousands of times more to work with Hemi.
I am sure companies that Hemi deals with are seeing the long term direction and are not shortsighted.
I am marking this post as a positive post!!!!!!
You must be assuming the production is static and no new wells will be drilled and completed and revenue and reserves will not increase monthly, if not daily. You are looking at a snapshot of one month.
This is the second act of a five act movie we have here.
Promise?!!
LMAO How's that been working out so far???
You can be sure Jagman I give coydog's and your responses each the proper weight I believe they deserve. LOL Good luck to you.
Thanks for your insight. Best of everything for you in the new year.
Coydog,
Based on your experience where do you think the majority of the incessant bashing you mentioned comes from, retail shorts, institutional shorts trying to avoid a squeeze, larger companies in the sector trying to keep the price low or just retail investors trying to get in at a lower price?
TIA for your take on this and health and happiness in the new year to you and everyone else. Excellent Board for learning.
For instance we bought a major bankrupt E&P companies records for all of Eastern OK from Oklahoma City to Arkansas, From the Kansas to the Texas line, in 2001? 2002? When I mean everything... everything is there,
http://investorshub.advfn.com/boards/read_msg.asp?message_id=15538011
http://www.worldatlas.com/webimage/countrys/namerica/usstates/ok.htm
Didn't those two leases show 144 bbls. You said 50.
I have been asked not to speculate on anything so I will not. From now on I am only posting links and information from those links. I think we can all add up these August numbers from these two leases.
purcell
2007 8 70.04 24 COFFEYVILLE RESOURCES CRUDE TRANSPORTION (100%)
reno
2007 8 74.2 8 COFFEYVILLE RESOURCES CRUDE TRANSPORTION (100%)
Posted by: Badge714
In reply to: duelittle2 who wrote msg# 23467 Date:10/12/2007 10:59:52 AM
Post #of 28299
Maybe those .104's I sell I just might be able to pick back up at .055. Who knows? After all we are on a down trend!
December 18, 2007 - 9:49 AM EST
Hemi Energy Group, Inc. Kansas and Texas Update
Hemi Energy Group, Inc. (Pink Sheets:HMGP):
Kansas Leases
We are seeing improved response from 53 reworked oil wells which have resumed production in October. The dewatering of the Purcell, Tebbens, Orth-Silvey, Reno and Bennett leases has yielded increased oil production, and nine of the wells are reporting improving natural gas cuts. This sets the stage for a continued increase in oil production as the gradual dewatering of the Woodson County leases, continues. Simply put, in the new wells we drilled during 2007, we noted the oil water contact point had changed from when our older mature wells were drilled and completed. The influx of formation water, raised the oil water contact point above the existing well perforations, which displaced oil with water. The dewatering of this formation has advanced to a point where increased oil production is now seen at the producing wells. As of today we have lifted and disposed of over 10,000 barrels of water from the producing formation. We have maintained a water injection rate at 200 barrels of water per day. Additionally, we have noticed an increase in natural gas pressures in the southern and western areas of these leases. To date, we have not attempted to sell this natural gas, choosing instead to leave it in place in order to help with the re-pressurization of these oil fields.
The Montgomery County lease currently has three mature oil wells that have returned to production on the Sturgeon lease. The new well drilled on the Sturgeon lease earlier this year primarily showed more amounts of natural gas than oil in the lower Bartlesville formation. Given the lack of natural gas infrastructure and pipelines in the area, this natural gas cannot be economically produced when compared to crude oil. Therefore we are preparing to come uphole and recomplete the well in the upper Bartlesville payzone. This recompletion work is expected to be conducted in January, pending weather and equipment availability issues.
Texas Leases
In December we acquired 125 acres of property in Throckmorton County, Texas (the Bailes lease) on which the discovery well was located. We have the exclusive opportunity to lease approximately 700 acres of additional land contiguous to our lease. There are three mature wells on this lease, and each produced more than 100 barrels per day for several years. They were abandoned for economic reasons in the mid-1980s, although each was producing approximately 30 barrels per day (which is consistent with the normal Texas decline curve for this type of formation). Management's experienced opinion is that re-pressurization of this geological formation has occurred after more than 20 years of no production or new wells on this lease. We have detailed drilling records and well logs of the three wells that show three to four producible pay zones.
Several oil and gas companies have expressed interest in acquiring or developing our lease acreage in Sabine County, TX. and we are currently exploring all options (joint venture, farm out, partnership and royalty positions) in the development of our leases that possess proven gas pay zones. We have the well records from the drilling & logs that shows detailed information about the multiple gas pay zones.
We have acquired five-year leases on the Barnett Shell formation located in urban Fort Worth. We are actively negotiating with several other owners to acquire additional leases. These leases are wedged between two major urban drilling programs that are being developed and expanded by two large New York Stock Exchange oil companies with home offices in Fort Worth and Oklahoma City. Each gas well in the Texas Barnett Shell formation is a multi-million dollar project and requires large acreage spacing in order to be legally and economically produced. Management strongly believes our leases will be needed, integral parts of the pooling these major development drilling programs.
Hemi Energy Group is an independent crude oil and natural gas producer employing a unique business model capitalizing on technological advances to exploit mature fields with millions of barrels of proven oil remaining in the ground, using attractive lease/royalty packages Hemi has secured in its history of tens of thousands of acres of productive domestic projects. The company's forward-thinking strategy has placed it in an enviable position at a time when prices and global demand for oil continue to rise.
Building on decades of experience in enhanced oil recovery, Hemi has successfully amassed a substantial and attractive portfolio of these high quality domestic properties. By streamlining operations through cutting-edge technologies, Hemi has the ability to operate more effectively and efficiently than larger oil companies.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.
For additional information please go to http://hemienergy.com.
Hemi Energy Group, Inc.
John Kelly, 817-566-0351
http://hemienergy.com
Source: Business Wire (December 18, 2007 - 9:49 AM EST)
I am not here to play games. I am here to make money- and not at the expense of others.
no, never heard of Snell mail. Heard of snail mail though.
Keith is better doing no deal than a bad deal.
Because once he has made a bad deal, that will provide something new for Hemi investors to complain about.
It is good that he follows no advice or meets any expectations that are put on this message board.
If he had, 2008 would be no good for us.
Because he didn't, many think 2008 will be good for hmgp.
Hemi Energy Explores Financing to Expedite Well Development in Kansas
San Antonio -- Hemi Energy Group, Inc. (Pink Sheets HMGP): In November(2006) several financial entities contacted Hemi Energy with offers to acquire stock and/or participation in well development. The company is in discussions with these parties in developing financial options to expedite development of our Kansas oil field without diluting shares and thereby safeguarding our stockholders interest. Hemi is considering an equipment debt instrument, one of several financing options available to us. This funding could also be used in conjunction with other financial ventures in expediting new well development. No form of convertible adjustable price debenture, commonly known in the marketplace as death spiral financing, will be issued by Hemi Energy for any form of financing.
That annual income may not seem like much.
Consider how many years of reserves are projected to be there.We dont know.
Consider what other formations we then have the ability to look at. We dont know. They may not have had the ongoing ability to keep up the service of it so needed to sell. Remember trusts need operators of the wells.
I am sure Keith did not buy a pig in a poke.
There is much more to it than JUST that annual revenue, which is not a bad thing any way.
And also, there was one insinuation that if they had gotten shares of Hemi they would have immediately started selling them. Why would they loan Hemi money then dump the stock they got, when helping Hemi grow could make them even more money.
You are entitled to your opinion of it. But the fact that in time it will have the name Hemi-WJSE as a future renaming seems intriguing to say the least. It was another poster who suggested this stands for Hemi-Wilshire Jessup-Lamont Sabine Energy and it certainly has a good fit.
I am anxious to get harder numbers as you are. You are not planning to sell any time soon I bet.
Thanks for proving my point. The Sabine subsidiary has Wilshire written all over it. Read this a few times if you need to.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25608649
Repeating my style of posting and even reposting some of my thoughts is "the sincerest form of flattery".
I brought a little more than bare statements without references but used logic, analysis to make reasonable inferences about the Hemi relationship with Wilshire.
It is thought that KAA is sitting on much pr-able information. That is why the investor base has grown.
The relative silence to this point is the calm before the storm.
Hope this does not cause you any worry but here is what is coming down the line, many here believe:
1. Production numbers
2. New Texas wells drilled
3. Updated reserve report
4. Another semi-annual report
5. News of insurance settlement for equipment losses in floods.
6. More info on the partnership where hemi is the operator for others.
I hope you will be around for all the fun but I suspect you will have left by then.
Almost forgot
7. A capitalization deal with Wilshire or someone else that will be non-dilutive.
I think KAA did the right thing at the time by not giving them the shares they wanted when they "flashed" the cash.
I think the Sabine deal is like hemi said "a vehicle" to get the capitalization.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25608649
Another lazy correction
"Wishire is a small investment boutique"
They were only "affiliated" with Empire and Jessup-Lamont.
Affiliations give a firm independence but also the financial muscle available when necessary to have at their disposal.
So much for affiliation being meaningless.
Boutique: (from Wikepedia)
It can also refer to a specialized firm such as a boutique investment bank or boutique law firm. The word is often used to describe a property in the independent section of the hotel market (such as The Rockwell in London) in order to distinguish themselves from larger chains (such as Hilton Hotels). In such cases the idea is that the operation is elite and highly specialized.
It was also inaccurate to talk about Wishire not being experts in their niche.
In this case the specialization is oil and natural gas clients which makes them EXPERTS in energy sector investments and capitalization. Another slur that tried to diminish this company that Hemi is negotiating with.
In another post it was said the relationship with Wilshire brought NADA. Not my words and again inaccruate.
The successful acquisition for cash for 100% ownership of Sabine Mineral Corp, a revenue generating subsidiary of Hemi Energy Group, came out of this relationship with Wilshire.
I am slightly ambivalent between ignoring wrong information and negative innuendos and slurs, but when posters like this give us a chance to again review the positive things that Hemi has going for it, I think it is worth it.
So I really want to give a hearty, robust and vigorous, and not at all lazy thanks to lazyeye to bring up this information to prospective investors. Well done LE.
Good follow through. Bedeznek never returned my call but I had spoken to Jim McBeth from Stock info systems when we still had them. GLTY. Happy Holidays.
I am a frugal freebie so had no choice but to wait for happy hour whoopee!
Just my thoughts.
We saw the original Wilshire deal fall through, or heard about it. Then the Sabine acquisition with Wilshire's name running all through it, including the name of the subsidiary.
I learned a lot from the way zguy puts things together. The info is not always clear cut but the pieces are fun to put together.
I start by assuming every move KAA makes is planning well ahead and within the long term business plan. This just ties together many loose ends into one possible scenario but I feel comfortable thinking of it this way. glty and Happy Holidays.
Correcting some lazy misinformation
Wilshire is not some "investment boutique"
Wilshire Capital Group is affiliated with Jessup & Lamont and Empire Financial Group, Inc. with 450 producing brokers in 51 branch offices
http://biz.yahoo.com/bw/071204/20071204005751.html?.v=1
From Hemi 9/29
Hemi Energy Group Acquires Sabine Mineral Corp.
FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink Sheets: HMGP) Tulsa, OK based Sabine Mineral Corp. has been acquired as a wholly owned subsidiary of Hemi Energy Group, Inc. Sabine Mineral Corp. is a long-established company that holds leases, mineral rights and overriding royalty interests ("ORRI") in individual gas and oil wells on many leases and income streams from those assets owned by the trust. The Sabine Mineral Corp. was purchased for cash and the assets in Sabine Mineral will remain intact with in the company and is intended to be used as a vehicle{some shares to be collateral for Wilshire} to acquire additional leases and individual wells.
As development progresses Sabine Mineral Corp. will be renamed the Hemi-WJSE royalty trust, as part of on going negotiations with Wilshire Capital Group.
It seems safe to infer that hemi is offering Wilshire part of the revenue stream for capital, shares in the trust. Hemi-WJSE is likely Hemi-Wilshire-Jessup-Lamont Energy as someone posted at the time. Notice it says "will be named". This is probably why Wilshire suggested it. They could not get stock shares in Hemi and did not want only proven reserves as collateral for capital.
From 9/29 pr
Wilshire Capital Group has shown interest in helping with the development of this financial instrument, Sabine Mineral Corp.
From Wikipedia
A royalty trust is a type of corporation, in the United States or Canada, usually involved in oil and gas production or mining. However, unlike most corporations, its profits are not taxed at the corporate level provided a certain high percentage (e.g. 90%) of profits are distributed to share holders as dividends. The dividends are then taxed as personal income. This system, similar to real estate investment trusts, effectively avoids the double-taxation of corporate dividends.
Royalty trusts typically own oil or natural gas wells, the mineral rights of wells, or mineral rights on other types of properties. An outside company{HEMI} must perform the actual operation of the oil or gas field, or mine. Shares of the trust generally trade on the public stock markets.
They are a powerful investment tool for people who wish to invest directly in extraction of petroleum or mining of other materials, but who do not have the resources or risk-tolerance to buy their own well or mine. {Wilshire}Additionally, since trusts often own numerous individual wells, oil fields, or mines, they represent a convenient way for the average investor to diversify investments across a number of properties. Also, since commodities are considered a hedge against inflation, the popularity of royalty trusts as investments rises as interest rates rise, and their shares often rise as a result.[1]
These trusts often attract investors with their relatively high yields;[2] in 2007, their distributions were often in the 10 to 15 percent annual range. This makes the shares sensitive to interest rates, as share prices are likely to decline in periods of rising interest rates, and to rise when interest rates fall. Additionally, royalty trusts in the United States and Canada usually involve mines or oil and gas fields which are at or past their production peak, and will gradually decline in output as well as revenue; however, the infrastructure to develop them has already been built, so that an investor can expect a reasonably steady income stream.[3] Hemi brings its skill set into play for the secured collateral along with proven reserves as unsecured collateral that Wilshire will be comfortable with. And no dilution.
In addition to allowing investors to achieve high dividends, especially during periods of low interest rates, royalty trusts allow investors to speculate directly on commodities such as gas, oil, or iron ore without having to buy futures contracts, or use the other investment vehicles{Which was the original deal before Wilshire tried to change it. traditionally associated with commodities – since the trusts trade like stocks. During times when a commodity price is rising, the share value as well as the dividend return of a trust engaging in production of that commodity will rise as well.[4]
-----------------------------------------------------------------------------------------------------------------------------
This makes me think we have not seen the end of Wilshire. Even if Keith and Wilshire cannot come to an agreement for capitalization Hemi still gets an asset with a continuing revenue stream. And if not Wilshire there could be another potential financier as demand for oil continues to rise. If no one else steps up the acquistion still fits into the long range Hemi plans, which will just take longer because of capital constraints.
Word! As the kids say.
And the archives will help us find those leases with good value.
There are things you are not privy to about Wilshire as well as hemi. I think it is good to keep it that way.
It appears a group of large pockets liked what they saw in hemi and came together to partner with hemi on a different level than shareholders like me and non shareholders like you.
If they were going to be giving hemi millions of dollars of capital to expand drilling, why would they want to then dump their investment. C'mon.
They thought they could dangle the cash and Keith would dilute. Good for KAA a bad deal is worse than no deal, but Wilshire probably still recognizes, even if you dont, the potential in hemi.
One of the bashers on the Hemi board alerted me to this company.
They also have an association with Wilshire Capital INvestments, not a hedge fund I am pretty sure.
I believe Wilshire was created because of hmgp to be a partner the relationship is still unclear but the ceo of hemi refused a huge loan that would have included 25 million shares of hemi.
I think Wilshire recognized how good the hemi plan was/is.
So here is Wilshire's second client/partner.
Looks to be another independent undervalued oil and nat gas stock, but I have just started looking at it.
Just wanted to pass it along in case anyone was interested. If I see anything of interest I will share it. GL
http://finance.yahoo.com/q?s=DYNI.OB
Why are you asking me. Ask Keith.
And those numbers are not very current either.