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Roust - I hope you are just trying a little humour on the board because your reply, technically speaking, is worthless. I don't want any of the board readers to be misled by your analogy.
First off, we're drilling a 17k+ deep well with a downhole steerable mud motor to properly angle away from the cement plug and reestablish the well bore into the correct orientation. This is not a 3/8" Craftsman drill cutting holes in 2x4's.
Each day of delay (and delays are unfortunately part of any high risk / high reward deep wildcat) costs this company several 100 thousand dollars. Dollars that will need to be raised again to further their exploration plans. Further dilution through rights offerings / etc. will be inevitable to re-inject capital into the company and this affects my present holdings in a negative way.
BTW, while I'm on a little bit of a rant, I am not so sure about the expense of the photo op and NASDAQ bell ringing ceremony. I am sure that the travel expenses for all the Zion company personnel were a fairly high cost endeavor. I want the company to get its revenue from hydrocarbon production, not fund raising ventures and promotion. If the intent of the NASDAQ listing and bell ringing was simply to sell more stock to a wider group of investors, then I am not sure about this companies vision.
That hard dolomite should provide an excellent cap seal to the Permian directly under it. Whatever fluids have migrated into the Permian section should be held there until the bit provides the escape path. We just have to hope for hydrocarbon fluids and nice reservoir development. If we get these two combinations, I think the resource will be huge!!!
You seem to have some "first hand" insight into the Israeli activity, post what you can but keep it quiet !!! LOL
Any "guess" when TD is expected? The last two weeks has not seen much new hole made that's for sure...
Been there, done that... LOL
You forgot to "jeep it" and pour some lighter fluid on it for observing cut...
Badge - I've seen this before and similar postings from KAA. My point is if that is indeed the HEMI game plan, why does their website not spell this out as a clear business strategy? It's as if the website is purposely showing one business model and the management working on another. Why?
The company, imo, should have been structured as a MLP (master limited partnership) or such so that the final liquidation would be out in the open for all investors to know what they were buying into. Even public pinks owe some degree of disclosure, whether required by law or not, to keep their investors informed of what is happening. I initially bought into this stock based on their PR's about acquiring all those mature SEK leases and how 4h generation know how and EOR was going to develop these old wells into 1500 bbl month production. The PR obviously had an extra zero as the "real" production seems to have been more like 150 bbl a month.
To put out PR's and a website that says one thing and then mgt. does something else is just wrong - and the stock price shows how the market views these choices...
"Help me out guys as it seems the discussion and tone as taken a turn completely away from what Hemi is as an operation, the stated business objectives and mission.
Afterall KAA did indicate that an objective for Hemi would be a possible buy out by 2010. Right?"
Really, did this statement occur in a public fashion for all inquiring people to view in a widely accessible view? Wouldn't the HEMI website be a good place to view the mission statement and objectives of this company? Okay, lets see what the HEMI website says about the company:
Mission Statement
Hemi Energy Group, Inc. is committed to managing the current and future development and production of strategic oil and gas properties as well as the acquisition of exploration and production (E&P) management company(s). Hemi Energy Group, Inc. remains dedicated to building and maintaining an organization that values integrity and a commitment to providing value added services to our clients, industry partners and public shareholders.
Corporate Philosophy
Hemi Energy Group, Inc. (OTC – HMGP) and subsidiaries’ corporate philosophy is to represent a benchmark of excellence and the “model” for a developmental stage/emerging growth and diversified oil and gas holding company. Hemi Energy Group, Inc. executes a “lower risk business model” and a fundamental commitment to maximizing shareholder values by utilizing traditional and advanced technologies to exploit and enhance the value of distressed and undervalued oil and gas producing properties and E&P companies. Hemi Energy Group, Inc. believes that domestic sources of energy both traditional and non-traditional (i.e. alternative energy sources) will be a critical component and driving force in the future growth and stabilization of the US domestic energy supply. Hemi Energy Group, Inc. intends to expand and fulfill the company’s commitment to providing the U.S. with domestically produced energy resources.
Did I miss something there? Does it state the goal of HEMI is to sell the company in 2010 or so, I don't see it...
But then again, the HEMI website still shows this under "Contact Info"... Notice a glaring problem here?
For addition information please email us at :
CEO, Keith Anderson
info@hemienergy.com
COO, Craig Treiber
ctreiber@hemienergygroup.com
Hemi Energy Group, Inc.
131 East Exchange Avenue Suite 223
Fort Worth, Texas 76106
Phone: (817) 566-0351
Fax: (817) 566-0354
BTW, the Projects tab of the HEMI website still shows pic's of all those leases that HEMI no longer is the operator on.
Does Keith, John or Joyce not know how to update their own website? Does the company not have the money to pay the webmaster to make needed changes?
You're correct indeed Jagman. But don't let your self esteem take too big of a hit Pathfinder Jack - just admit the error and move on...
"He who throws stones at others grammar, better be bullet proof" Confucius 777 B.C.
IMO, many of these institutional holders of Zion have positions because of the June 2009 addition to the Russell 3000 index. Some funds and fund families simply hold the index basket of stocks so they would be forced to include Zion in their holdings.
Look what happened to the price of Zion on the announcement, an 80% single day pop. The heavy accumulation and resultant price spike was during this acquisition phase.
http://www.oilinisrael.net/oil-in-israel-news/oil-in-israel-exploration-news/zion-oil-july-3-2009-update
"RUSSELL Indexes select Zion Oil & Gas (ZN)
On Friday, June 26, 2009 Zion was included in the Russell 3000 ® Index, a value weighted index that measures performance of the top 3,000 stocks of the investable U.S. equity market.
You may have noticed that, on that Friday, the volume of Zion stock traded was over 2.1 million shares and the price jumped dramatically.
This was almost certainly due to the index funds buying ZN stock to ensure that they are correctly balanced to track the index.
As Warren Buffet has commented: “In the short term the market is a popularity contest; in the long term it is a weighing machine.”
To have a sustained high share price in the long term, we will need a ‘discovery’ of hydrocarbons. And that is exactly what we are working on."
Regardless of the reason, it is a good thing that the ownership in ZN is increasing in scope - sure cant' hurt !!
The news is now out about Hemi shedding SEK leases - by DD of individual investors here and the Moon but not a company release.
It seems that those who touted that big news was coming to HEMI - in the form of "the Hawk" a month or two ago had some insider information. hmmmmm????
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39584622
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39506238
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39589785
The well being cased at this intermediate depth (through the first potential pay zone - Triassic section) is not cause for exuberance yet. Wells drilled to this depth, ~18K feet, especially deviated holes such as this one, are often drilled to predetermined depths, logged, and then cased to protect the well bore from formation collapse and loss of drill pipe / well.
Each point of intermediate casing means you go back in with a slightly smaller diameter drill bit and then the next string of casing is slightly smaller than the last. It sounds like they will go all the way to TD (through the Permian section) on this last 1000+ feet of open hole. If they case to TD after logging this final section, then that would be encouraging since they wouldn't go to the expense if there was no zone of interest below the last casing point in the Triassic.
Just to inform the group of factual geology conditions, there is never a "pool of liquids" in an underground reservoir. All potential zones have fluid present in the voids of the rock (the matrix). The percentage of fluid contained in the matrix is called porosity. The fluid can be water (fresh at shallow depths, salty at deeper) or gas or oil. The reservoir rock is generally carbonites (limestone or dolomite) or sandstone. Typical porosity values for sandstone at these depths would be 15 to 25%. Typical porosity values for carbonites would be 4 to 15%. This means that a sandstone formation with 20% average porosity would have 80% of the volume filled with the rock and 20% would be fluid.
The already logged Triassic section appears to be carbonites based on the relatively hard rock encountered and the fact that Zion says they are looking at fracture analysis in the laboratory. Natural fracturing of the rock occurs in carbonites and not sandstone formations. The fractures create pore spaces for the fluids and deliver outstanding flow rates since they allow the fluids to flow more easily (this feature is called permeability).
Let GOOGLE be your research asst. Mr. Sputnik:
http://www.google.com/search?q=Hemi-WJSE&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a
provided this link:
http://www.hemienergy.com/09-27-07.html
It's a 50:1 reverse split so your 1000 shares turns into 20 shares (1000/50). The initial price would be 50 times higher than the last traded price of the old stock.
History shows though that most reverse split stocks usually fall back towards their previous stock prices since the business conditions that necessitated the reverse split are still present.
Reazo - in all honesty, there are legitimate sellers of Hemi stock, it isn't all NSS. My post below shows my disclosure of selling my entire non-IRA HEMI holdings in June after confirming that Craig had left the company... I still hold ~30K shares in my IRA's as there is no point in selling since I can't write off the tax loss. I'll just let this $90 market value ride in hopes of a 4700% gain to get me back to my break even price of 14 cents a share. (0.14 / 0.003 = 47)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=39081535
My exit point of 0.008 has saved me another 63% loss based on the 0.003 pricing on HEMI stock this week. Hard to believe one could lose another 63% on a stock that was already down 96.5% in value.
"got out 2 years ago"
Just curious redsox219, do you remember about what your avg. SP was when you got out? Bet you're glad you did !!
Badge - thanks for your information. A quick look at your numbers look good as far as the math goes (converting BCF to MCF and such). My only concern is the data from Hemi. I agree with Hillzman that the oil reserves report from the mysterious GeoSystems Engineering, Inc. (Dallas, TX) should be viewed somewhat jaded in that the company appears to have went out of business and is hard to even find any info on them.
Page 1 of http://www.hemienergy.com/hmgp_semi_annual_report.pdf
If there is 2.15 MMbbls of oil in their SEK leases, Hemi has only managed to pull out a couple thousand bbls. in 3 years of operating there.
I believe the gas holds the most promise since it has not been depleted, at least in the coal bed seams. Time will tell if anyone is interested in these reserves even at 25 cents a MCF in inground / undeveloped condition.
Admiral Bay has recent history of CBM gas acquisitions in the immediate area although those leases were well established and had production / compressors / gas lines already installed and generating cash flow.
LOL, I know what you mean... Anyone who is an expert in quoting prices with ease below a penny a share are playing with fire. You need to be a trader with these values, not a long term holder imho.
I myself can handle only one zero to the right of the decimal with confidence, two or three zeroes in there and it just ain't right.
BTW, your math was correct. 700k shares times the 0.0004 SP was about 280 bucks (and probably 50 bucks or more for commissions on that large a block)...
I know all those zeroes to the right of the decimal point get confusing but don't you mean to say "4 ten thousandth of a dollar -or- 4 hundredths of a penny"???
$0.0004
0.0 tenth
0.00 hundredth
0.000 thousandth
0.0000 ten thousandth
I hope Zion is able to get that digital copy of the "on site" news report(s) and post a link for download. That would be very interesting to see and hear.
I am cautiously hopeful that ZN's call for doing this placement so soon into the drilling process is that they already know they have something good in the Triassic section to warrant well completion and testing. This adds substantially to the well cost, both for equipment lease / operations experts and drilling rig day rates.
They are substantially discounting the price of these additonal shares which lessens the dilution to the existing holders. As long as they are priced at $5 and the SP is north of that, its a bargain.
Now if only they hit something commercial in one / both zones!!!
For those that like looking at stock chart trends, here is the latest on ZN:
I'll settle for 40 a share short term on any oil discovery announcement, 400 seems a little fluffy...
Carl - I sure don't remember any such news from HEMI regarding a JV partner as outlined in your post. If you are a paid member here on iHub, you could search for this member or post about it in the Hemi board. If not a paid member, wait until Happy Hour on Friday, 4-5 pm EST, where you get one hour to use the premium tools like search and PM's.
Post back with your results please.
I've always tried to be civil and just present facts and figures with supporting links. The data I've uncovered over the 2+ years in HEMI has led me to believe the SP is where its at simply because of poor financials caused by less than anticipated oil revenue from SEK.
Their plan, as I understood it to be, was for the minimal oil production to pay the bills while proving up NG (both conventional and CBM on the leases) for an eventual buyout. The NG pricing totally collapsed and makes the SEK NG assets virtually worthless at present time. Market forces at work, can't blame KAA totally for that although all CEO's have to bear the blame or get the credit for their public companies performance.
The other HEMI assets / plays are hard to value because they have never adequately shown all their holdings in non-core areas like ND / East TX / Barnett shale.
I wish you longs the best and hope your hawk drops that dime a share buyout sometime soon. I am virtually out of this investment now save 23k shares in a ROTH that made no sense to sell because there is no tax loss I can use from that account.
Manti - you're right, its not 20 bbls a day but Kels did link you to Hemi's best well (and lease). The KGS data shows that this single well accounted for ~45% of all their sold oil in 2008 (848 bbls out of 1953 bbls). Accounting for maintenance and weather related downtime, about 3 bbls a day would be the yearly rate.
The remaining 55 wells produced ~1100 bbls in all of 2008.
http://abyss.kgs.ku.edu/pls/abyss/oil.ogop4.OpPage?f_id=1033972094
Kels - you are correct that the SOS site lists 2 entries for Hemi Energy but I did provide the data from the most current one. The other one is much older and shows OKLAHOMA as the state of formation:
http://ecpa.cpa.state.tx.us/coa/servlet/cpa.app.coa.CoaGetTp?Pg=tpid&Search_Nm=hemi%20energy%20&Button=search&Search_ID=17530379225
BTW, two other o/g companies often mentioned in the same PR as HEMI, XTO and Chesapeake, both show the following status under the SOS website:
Entity Information: XTO ENERGY INC
810 HOUSTON ST STE 2000 C/O MARIE LEDBETTER
FORT WORTH, TX 76102-6298
Status: IN GOOD STANDING NOT FOR DISSOLUTION OR WITHDRAWAL through August 17, 2009
Entity Information: CHESAPEAKE ENERGY CORPORATION
PO BOX 18496
OKLAHOMA CITY, OK 73154-0496
Status: IN GOOD STANDING NOT FOR DISSOLUTION OR WITHDRAWAL through August 17, 2009
This hasn't been posted in a while, from the Texas State government offices:
Entity Information: HEMI ENERGY GROUP, INC
131 E EXCHANGE AVE STE 223
FORT WORTH, TX 76164-8244
Status: NOT IN GOOD STANDING
Registered Agent: KEITH A ANDERSON
1100 INDIANA STREET SUITE 116
GRAHAM, TX 76450
Registered Agent Resignation Date:
State of Formation:
File Number: 0800444322
SOS Registration Date: January 24, 2005
Taxpayer Number: 32016616495
http://ecpa.cpa.state.tx.us/coa/servlet/cpa.app.coa.CoaGetTp?Pg=tpid&Search_Nm=hemi%20&Button=search&Search_ID=32016616495
One thing about HEMI we should be able to all agree on, this is a speculation stock with a capital S.
Where else can a single trade of $180 value cause the market cap of the entire company to lose 75% of its value???
HEMI ENERGY GROUP (OTC) (HMGP)
Last $ 0.002 Change: -0.0059 (-74.68%)
Volume: 89,240 10:40:36 EDT Jul-21-09
My experience with PR's that get released after the markets close on Friday is that more often it is bad (or neutral) news rather than good news.
I hope I am wrong here.
Kels - 2nd cryptic reference to "hawk" on the iHub board this week... Petrohawk Energy Corp. comes to mind when I hear "hawk" mentioned in the o/g arena. With all their East Texas Shale development they have going along with some gas / oil operations in Kansas, is that the big blue moon Hemi buyout rumor this week???
Kingman - I would be most interested in seeing your source for this claim that XOM uses PIP technology and how it helped them in their drilling site selection / results...
I get it, it's cryptic code.... Not unlike the Da Vinci code but this is the Anderson Code...
Here are the clues:
Oil is Green
Moon is Blue
Shareholders are Black and Blue
Decryption from my Core2Duo says:
"Sell, Mortimer, Sell !!!"
OT - 2nd offshore appraisal well enlarges NG structure...
This is great news for Israel and for the geology of the region.
http://rigzone.com/news/article.asp?a_id=77999
Noble Energy Successfully Appraises Tamar Offshore Israel
Tuesday, July 07, 2009
Noble Energy has announced today results from its Tamar appraisal well, known as Tamar-2, offshore Israel in the Matan license. At a total depth of 16,880 feet and in 5,530 feet of water, the well is located approximately 3.5 miles northeast of the original discovery, Tamar-1. Drilled on the flank of the structure with the intent of confirming reservoir quality and continuity, the appraisal was also designed to confirm the projected gas/water contact.
Reservoir thickness and quality were consistent with that encountered at the Tamar-1 location. Pressure data also confirmed continuous high quality reservoirs. The gas/water contact was encountered where projected in the middle reservoir and, as expected; no water contact was seen in the top reservoir. Whole core samples in three reservoirs were obtained to assist in the geologic and engineering studies needed for field development.
The results of Tamar-2 have considerably reduced the uncertainty in previous resource estimates for the structure. Accordingly, the gross mean resource estimate for Tamar has been raised to 6.3 trillion cubic feet, which represents a 26 percent increase from the estimate made following the Tamar-1 drilling and double the original pre-drill resource estimate for the prospect. In order to further confirm Tamar drilling results, a reservoir consulting firm has been retained to prepare an independent assessment of the discovered natural gas resources.
Charles D. Davidson, Noble Energy's Chairman and CEO, said, "The results of the appraisal well are extremely positive for Noble Energy, our partners, and the state of Israel. With drilling at Tamar and Dalit, we have already confirmed a very substantial amount of natural gas resources, perhaps over two decades of future supply based on projected needs. As such, we are moving forward with development plans focused on bringing the first phase of production to the Israeli shores by 2012."
Noble Energy operates the Matan license with a 36 percent working interest. Other interest owners in the well are Isramco Negev 2 with 28.75 percent, Delek Drilling with 15.625 percent, Avner Oil Exploration with 15.625 percent and Dor Gas Exploration with the remaining four percent.
Noble Energy and its various partners are currently preparing to acquire approximately 1,200 square miles of 3D seismic data over several leads on their acreage in the Levantine basin. The seismic program is anticipated to commence in the third quarter.
Maybe that's the case but the DNS resolver service does not seem to recognize the domain name anymore. This does not look good. Maybe domain/website host pulled EDEX off their host for some reason (speculation of course but possibly non-payment)???
http://www.tracert.com/resolver.html
Try entering www.eldoradoexploration.com and it comes back as "Could not resolve" . Other standard URL's like www.yahoo.com or www.google.com come back with the IP address resolved.
Thanks for those clarifying points.
Next few days could be real volatile while the market balances all those newly issued $5 per share holders tempted against the $13+ Friday close -versus- the Fund Mgr's need to add ZN into their index funds -versus- a potential PR on interim well / logging report.
Cinch up your seat belt, wild ride directly ahead IMHO....
how was the recent rights offering of $5 / share new stock to shareholders set up for delivery of shares? I mean, do those that chose to exercise the purchase already have the shares in their accounts or if not, when do they get delivery? Was there any restrictions on them as far as holding period?
I am just wondering if anyone will sell into Friday's 80% gain with some of these low cost shares. Would be pretty darn tempting even with the short term tax consequences and hopefully forthcoming good well results...
"Here's a question. What, short of oil coming out of a hole, would impress someone to call the family and tell them to tell their friends to buy Zion? Since I have no experience in this field, the only thing I can see that would get me to call home is oil coming out of the hole."
There are many events that can cause favorable optimism about the zone during the drilling process. As they drill, the formation (rock cuttings) are circulated back to the surface in the drilling mud. Just like when you drill wood with a bit, the sawdust comes out the hole as you go deeper. The mud logger / geologist captures and analyzes the cuttings for signs of oil and gas. This would be called an oil or gas "show". They also use high tech "sniffers" that smell the drill mud for escaping hydrocarbons that leach out once they reach the surface.
The drilling rate also can be a clue. The last PR talked about drilling in very hard dolomite and a slow rate of penetration. If they suddenly start drilling much faster, that's an indication of a more porous zone and/or lithology change. This is called a "drilling break". This could be the reservoir that holds fluid and the hope is that the fluid is oil / gas. You could also get a "kick" on the drill string. Once you drill into a gas or oil zone, the resulting pressure of the fluid can cause a "kick" in the drill string that the driller sees on their pressure equipment. This pressure kick is controlled by the careful weighting of the drilling mud and a BOP (blow out preventer) at the surface. If any high pressure oil / gas try to blow the mud out of the hole, the BOP valves clamp down around the drill pipe and contain the pressure.
There is also technology called LWD (logging while drilling) that has rudimentary tools at the bottom section of the drill string immediately above the bit. This is part of a BHA (bottom hole assembly). These tools can read in real time, data like resistivity and gamma ray to get information about the formation while they are drilling it and without the need to trip out of the hole to run conventional logs.
Finally, once they reach TD (total depth) or in this case, an intermediate objective zone, they would trip out and run their full suite of wireline logs. This would be the most definitive set of data to indicate that they may have found something very good. The final testing would come at the end when they try and actually produce a limited amount of hydrocarbons through a DST (drill stem test) where the formation is actually allowed to flow its bounty to the surface for flow rate, fluid and pressure analysis.
From this read, any "traders" in ZN will be patting themselves on the back if they sold into this intense run up today.
Probably a triple witching (non options expiratory type) event of Russell Index balancing, short covering on the initial pop and leak/rumor about the current well drilling results. They do happen to be at the first of two primary targets (Triassic) right now. The PR said they would be logging the well over this zone - probably already has happened.
54% gain for the day with 20 mins. left in the day... It's either a short squeeze or that drilling crew has seen something good in the Triassic zone and have leaked out the word....
Hmmmmmm.... can't wait for the interim logging results.
You must've not looked at your account recently. Stock sure didn't trade that high today...
I sold all my "non-retirement" account Hemi stock last week after I found out about Craig leaving the company. Average "out" price was 0.008 for me. 96.5% loss on those sell orders for me (yikes!). What an investment.
Sure - no problem...
1. Wireline logging is divided into "open hole" or "cased hole" operations. This well is in the drilling phase so the immediate wireline work would be of the "open hole" variety. If the operator decides it is time to run logs, the drilling rig will pull the bit up off the bottom of the hole 30 feet or so and circulate drilling mud for seveal hours to condition the hole. This removes all loose cuttings and allows mudcake to build up on the permiable formations. They trip out of the hole with all the drill string. The bore hole is now "open hole" since there is nothing in it but drilling mud. The wireline company then lowers the logging tools into the well bore to the bottom and then slowly pulls them out while recording the formation data during the retrieval. This is called "logging" because the data is printed out on a long recording graph paper showing data and depth information.
2. The term wireline logging comes from the cable used to attach to the logging tools. It is a strong but flexible steel cabled sheath with multiple electrical conductors inside. The electrical conductors provide the power for the tools and allow two way communication of data and control signals from the logging truck to the tools.
I looked on YouTube last night to see if I could find a nice video of wireline logging operations but could not find a suitable one to post a link. Pictures are worth a thousand words they say and would be easier to understand the process. If I come across one, I will post back.