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Gee I wonder why these "investment boutiques" as you call them pop up.
This one seems to have been created initially for Hemi.
Groups of wealthy investors who recognize the current value and have a good sense of the future value of Hemi. I guess the other company you mentioned probably is worth a look.
Considering they have tens of millions of dollars of investment capital and neither you nor I do, I feel very comfortable with their level of expertise.
Thanks for the tip.
No badge, I teach and have taught first graders, they cannot do that simple subtraction problem. You are using a specious argument.
Just reread the thread a few more times until you get it.
Here is another way to view it. Profitable means "able to make profits". It does not mean you will see numbers on paper that show profits. It means that could happen, but what you want goes directly against the long term Hemi business plan that you have so heavily invested in.
You want KAA to show small profits on paper for the next ten years.
In one sense I could care less about what it has on paper.
GAAP leaves a lot of wiggle room to present numbers on Income Statements and balance sheets.
It is about production, reserves, growth, finding oil and gas to have the company bought out in the future.
And a third way to view it you are probably seeing the effects of the flooding, which when covered by insurance probably erases that.
And another point. You are trying to make a point by holding up one line on an UNAUDITED Income statement.
Badge you again have missed the point. I have created Balance Sheets, Income Statements and Equity Statements, have you?
This is the way to look at a blue chip stock because they are trying to attract conservative investors who are looking for corporate dividends so they "make" the company look profitable.
You know this is not what Hemi is about. Are you expecting a dividend every three months?
If Hemi is paying cash for assets and expenses, which it is along with a small amount of restricted stock, it is growing. Would you rather KAA show a small profit "on paper"?
Thankfully KAA knows what he is doing and HE ALONE is the CEO.
We are just passengers on the train.
We have discussed this before badge.
Revenues are put back into the company in the form of leases and acquistions and expenses that help the company are used to write off against revenue.
What a lot of the public hates about corporations, especially big oil is that they show trememdous revenues and pay little or no taxes.
It is not as simple a situation as you make it seem.
And profits have much more meaning in a company where investors expect to receive dividends. That is not the case with hmgp.
It is about growth and then a profitable buyout.
Hemi may never show a profit to the simplified standard of one line on an Income Statement, but the company will continue to grow and then be sold, as you well know.
More important numbers in our situation will be about production and reserves, we are not expecting quarterly dividends here.
BusAdm 101
Finance 101
Acct 101
Strategic Manag 450
The relationship with Wilshire is still unclear but interesting.
KAA is still waiting on a counterproposal from them but the subsidiary of Sabine Minerals carries their name. It is wholly owned by Hemi as far as we know. It was suggested by Wilshire, experts in energy investments, so that combined with KAA's savvy is why the deal was done and it fits in the plan because it would be used to acquire more leases and wells.
Wilshire is not a hedge fund. When they wanted a substantial position in Hemi it was not to immediately dump the stock but to ride the hemi train or was it. Are these the t trades?
I think not because KAA refused to give Wilshire shares and has no knowledge of them. The fact that Wilshire has shared some of their expertise, for free perhaps shows the interest they have in hemi as a good investment, and KAA'a savvy too.
I think this unclear situation is not a bad thing. Wilshire recognizes the potential and present situation of Hemi and KAA knows what he has and where he is going. I am glad KAA is patient enough to not accept a bad deal and that Wilshire knows how valuable hemi really is and will be.
From Wilshire 5/18
Wilshire Capital Group, Inc. Investment/Energy Bankers and Financial Consultants Engages with Hemi Energy Group Inc.
to pursue strategic acquisitions of oil and gas producing properties and developmental drilling programs. Wilshire Capital Group and affiliate companies consider it a privilege to assist our clients in achieving their individual corporate and institutional financial goals.
Dallas, TX (PRWEB) May 18, 2007 -- Wilshire Capital Group, Inc. and affiliate companies announced today that it has engaged with Hemi Energy Group, Inc. (www.hemienergy.com) to assist the company in the identification of a multiple of capitalization facilities requisite to pursue the acquisition of strategic oil and gas producing properties and/or E&P/ production management companies and to assist Hemi Energy Group, Inc. to develop/implement a developmental drilling program(s) in Woodson County, Kansas and Montgomery County, Kansas within the region of South Eastern Kansas.
Wilshire Capital Group, Inc. has retained a third party petroleum engineering firm and consultant(s) to review previous engineering evaluations performed for the company within the Humbolt Chanute Field and the southeastern region of Kansas. The goal and objective of the current evaluations are to comply with developmental drilling capital facilities requirements fbo a proposed developmental drilling program(s) in Woodson County, Kansas and Montgomery County, Kansas and the continued corporate commitment to maintain and enhance shareholder(s) values.
Michael Bezdek, President of Wilshire Capital Group, Inc. stated that, "Wilshire Capital Group and affiliate companies consider it a privilege to assist our clients in achieving their individual corporate and institutional financial goals." Wilshire's corporate offices are located at 2018 Cadiz Street, Suite 2C, Dallas, Texas 75201. Wilshire Capital Group, Inc. can be contacted at 214-760-9483 attention Michael Bezdek, President and/or by facsimile at 214-741-5388.
From Hemi 5/29
Wilshire Capital Group, Inc. and its affiliate companies are currently pursuing due diligence to enable them to assist Hemi Energy Group, Inc. Wilshire has retained a third party petroleum engineering and consultant(s) firm that is used and well accepted by larger oil companies and Wall Street investment bankers. Hemi and Wilshire will expand its working relationship, when due diligence is completed, to pursue strategic acquisitions of oil and gas producing properties and implement expansion of ongoing developmental drilling programs. Planned funding from Wilshire for future Hemi developments is to be accomplished through a division orders, i.e. contracts to purchase future oil production. There is no intent to use equity dilution in any form for future development of Hemi leases. Stockholder's equity interests will continue to be maintained as it has been in 2007. Management believes that the market cap and the market price are currently artificially low. This belief is based on the total value of the oil and gas reserves on leases in Kansas, lease values in four other states, its extensive research library and management's experience.
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. This 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 to acquire additional leases and individual wells.
Wilshire Capital Group has shown interest in helping with the development of this financial instrument, Sabine Mineral Corp. Hemi continues to implement its business plan with this acquisition and strengthen its relationship with Wilshire Capital Group, who urged this acquisition as part of our operational plans. As development progresses Sabine Mineral Corp. will be renamed the Hemi-WJSE royalty trust, as part of on going negotiations with Wilshire Capital Group.
Wilshire is studying the independent reserve report on the five leases that have proven reserves in Woodson County, Kansas to determine their potential involvement for development. In addition, there are several new projects in two states that Hemi is presently reviewing that are at different stages of development and implementation.
Hemi President and CEO Keith A. Anderson stated, “Our Market cap is substantially undervalued, an artificially low market cap based on what the Oil and Gas Industry book value would value Hemi Assets, We are aware that some shareholders have issues and are concerned by after-hours stock trading. We would like to reassure the stockholders that Hemi management has no knowledge nor involvement in the after-hours trading that appears to be discounted stock prices to brokers. Management has used shares in 2007, most of them being restricted shares, to acquire assets for the benefit of Hemi, its shareholders and management compensation and services.”
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 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.
And I am still interested, if anyone knows, about what NITE 35 means when one clicks on check availibity. Clicking on other companies you get millions sometimes.
This is part of the pr campaign on multiple media outlets to help get the word out.
Since Hemi is debt free and profitable there needs to be worthwhile expenses to write off against the profits.
ACCT 101 for the expense write offs
BusAdm 101 for the promotion
Your investment and my investment in hemi helped to pay for this in a sense. Gotta love Hemi.
I Wonder if this is our poster kingpin commenting.
http://growingww.wordpress.com/2007/12/19/invest-in-oil-and-gas/
Can anyone explain what this means. When you go down to hemi is has phys attached, I guess physical certs. When you click short availibity is says NITe 35. What does this part mean?
http://www.interactivebrokers.com/en/trading/ViewShortableStocks.php?cntry=usa&tag=&ib_entity=llc&ln=&b=HDV&e=HMS
I dont recall seeing this link posted. It is dated from Nov 30. A lot of the info is taken directly from hemi's website but there is some editorial comment.
http://www.wallst.net/superstocks/HMGP/hmgp.html
Well I was not there so dont know for sure. It has been mentioned on this board several times. You may be able to look at the financial report or email him.
I am sure if you compose a respectful email you will get a response.
We are only under a hundred thousand volume and in Dec. I would wait until Spring before I jumped out of a 50 story window because of hemi. JMO
I bought some more alry yesterday. Seems it is at the bottom with huge upside imo. The company has good assets and a good plan.
OT yes FSU really made a difference. I always suggest it to my graduating students. It was perfect for me, a place to focus. Always gets high rank for public universities in terms of quality. And Frostburg/Cumberland always seemed like a great place to raise a family too. GLTY
OT To tell you the truth I was not working up to my expectations in High School I could get B s and honor roll without breaking a sweat, just partied all the time.
When it was time for college I had been convinced to try to work up to my abilities so, due to budget, stayed in state but got out of my usual College Park haunts.
Became a bookworm, got dual degrees in Bus. Adm and Math 3.85 gpa, magnum cum laude, then on to UMUC in College Park for Computer Science Degree then half way through a masters in Applied Mathematics and Computational Science. Received certification from Society of Actuaries in Calculus 3, Linear Algebra, Probability and Stat and Theory of Finance, then went to grad school instead.
Now I just tutor math (I have so many requests I refer out to 3 other tutors, probably dont charge enough I guess.)
But I love my work, change lives for the better every day and work for myself.
Just took on a fourth grader and her kindergarten brother. The girl is "stunted" according to a librarian who has seen her and the fact she talks like a munchkin is great.
But the main thing is her parents were suddenly gone, I dont know if it was a traffic accident or murder suicide, if the grandmother wants to share that on her own that is fine.
These children were loved. The kindergartener can read sentences and the girl loves to learn and has great enthusiasm.
Suddenly grandmother has these two and one other to raise.
They get a serious discount and if she said she could not afford the little I ask I will tutor them for free for my own joy.
Did I mention I love my work.
They see a therapist once a week and I cheer on their academic success once a week. They were dealt a bad hand and I plan on stacking the deck myself from now on.
Now if hmgp and alry just find their actual value I would feel even better.
Sorry for the OT folks. GLT everybody in their financial decisions. Love reading this board.
Jagman, I guess that makes you an old fart. Happy Holidays to you and my sympathies to your wife. LOL
Salisbury state seagulls, right. Beautiful area
OT BLT321 I am a Frostburg STate grad
Did not mean it to sound disparaging in any way. You were the OWNER, not a staff member. It is unlikely you paid much over minimum wage if that. It is a fact of life in the retail industry.
Many companies intentionally keep employees under forty hours if they can, and of course no health benefits.
Hemi field workers may not get some perks, but their skills demand high wages because what they produce with their labor is that much greater. And Keith did say it was difficult to find experienced help, high demand low supply means higher wages.
I suspect, and have no evidence, that because insurance has been so slow to settle claims from last spring's floods that KAA came out of pocket to help get wells back on line.
After all, where would revenue be coming from if they were underwater.
I can live with that share increase. At least he has told us his shares are in certificate form and do not create more dilution in the martketplace.
And in that position, a share buyback by Hemi becomes even more attractive to a shareholder holding 25% of the outstanding shares. JMO
belated CHRISTmas present to myself 4600 more at .06
GLTAL
santa clause effect?
I for one would like to hear them. Happy Holidays Badge and all other Hemians.
But I heard they have never been in the same place at the same time so who knows. LOL Happy Holidays alry investors. I will be buying more next market day sort of a CHRISTmas present for myself.
Very Eloquently stated, a little long, but well said.
and hey, I said Ihub ceo first. LOL. You brought to life my exact sentiments very nicely. Thank you.
I guess thats why you get paid the big bucks. JK
I guess we will have to respectfully disagree. Yes, facts and verifiable information, the more the better is what I want.
All the speculations, wags etc I can live without also. I just crunched some numbers KAA put in the pr.
Badge found something that is disturbing to me. I would rather know than find out that "something may not be right".
I trust his DD and insight it adds a lot to the board and certainly gives me more things to think about. For someone, anyone to say that something is wrong is speculation.
We seem to get those hit and run one post wonders every now and then which should be ignored. But longs who have concerns should have the concerns discussed in a respectful and meaningful way imo. That is part of the reason you started this board I would hope.
ONce the board has a chance to hear the concerns, it gives longs a chance to explore things further. In any case GLTY and all longs and Happy Holidays to all. Here's hoping 2008 starts better than this year is ending.
could be folks at the money making board. They are keen on hmgp
Yes, I think you have the right lease Badge. Their lease could have run out years ago. At the time 30bopd at that current price may have made it uneconomical for them.
There could have been bad blood between the landowner and Cherokee. The landowner could have heard that letting it sit idle for years would help.
There are many possibilities.
I think you found the right lease but I would not read anything negative into it just because none of us can find production records back then.
It still looks like a great find to me, but I am no expert in the industry.
And the numbers come from the archive KAA has. It is illegal for him to state information in a pr knowingly false. I think he is being honest. There is too much potential upside for him to do things right than to try to scam people and risk imprisonment. Does not even merit further consideration IMHO
I think the three could be the bailes parameter jones since there are three and the dates end in 1994 which is less than 20 years granted but production is close to 30 bopd.
KAA was a little non specific I agree just as with who the nyse operators are he referenced later. Such is life in the prs of the o and ng world.
edit or maybe not more pages. more searching to do LOL
Then since you dont want to share your opinion I will share mine.
We can trust your analysis of what you saw at rrc site, with some vague reference that there may be something wrong.
Or we can trust what anyone else can find at rrc as well as KAA's ability to look at rrc site, as well as his communication on the ground with the lease owner, operators like romac, other companys in district 7B, his own O and ng experience, the drilling and well logs that he has.
Think about the comparison and the posts you made about this lease.
That is your choice to share information or not. But if you choose not to, and you are long, why put out statements that are negative and can create doubt for new shareholders who might be looking at Hemi.
If you don't want to share anything you found that is your choice but if in place of that you put out something that creates doubt about a current pr that makes your motives questionable.
If you are talking about past history by not following up information in prs you have a valid point. If you have found some outside information that makes KAA's statement incorrect you should share it with the board instead of just trying to create doubt.
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.
3 wells times 30bopd times 30 days times $70bbl is $189,000 per month minimum. With Craig's expertise and any amount of repressurization the numbers could get even better.
bopd monthly revenue annual revenue
30 189,000 2.27M
40 252,000 3.02M
50 325,000 3.78M
60 378,000 4.54M
Once they get in there and see what they can do, it could be even better.
The minimum we should expect is 30 bopd
It has been KAA's production numbers that have been questioned, especially when not given to the board.
The information about the bailes lease is something new and good IMO.
Having all of the on site records is a bonus.
Probably gives Keith and Craig a good idea how to maximize production from the wells.
I cannot speak for anyone else obviously, but I trust your judgement and your DD. It is your motives sometimes I find questionable. You can be a very strong asset to longs on the board if you choose to be.
I have been looking on the site also. One part I needed was unavailable last night.
So what did you find?
They talked about the repressurization of the formation but that will not be known until they bring them back. But they were shut down at 30 bpod. That should be a minimum. Did your DD tell you anything different? TIA
Thank you Kelsey and Happy Holidays to you and yours as well.
Coydog, those "mirror trades" you saw have occurred before and for the same reason you mentioned. The more larger entities try to discourage me, the more I want it. LOL
Glty