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Here goes the wireline 101 terms:
Caliper Log - measures the diameter of the borehole. Useful to figure out volume of the drilled hole when cementing casing in place. Also shows area of high permeability as mudcake builds up on the formation wall from the pressure of drilling mud column. The caliper log will see this as a tightening (smaller diameter) of the borehole.
Compensated Neutron Log - measures porosity of the formation (amount of pore space that holds fluids be they water, oil or gas). Uses radioactive neutron source and detectors. When porostiy value readings from the Neutron are compared to the Densilog porosity readings (see below), gas saturated zones show a distinct "crossover effect" in the readings to differentiate gas from oil.
Compensated Densilog - measures porosity of the formation (amount of pore space that holds fluids be they water, oil or gas). Uses radioactive Gamma source and detectors.
Gamma Ray Log - measures the natural Gamma radioactivity from the formations to help detect formation type and boundries between different zones. Shales are relatively high in Gamma radiation and sands / carbonates (limestone and dolomite) are naturally low.
High Definition Induction Log - measures the conductivity (inverse of resistivity) of the formation and any fluid contained in the pore space of that formation. At these depths, any water in the pore space will be highly salt laden and thus low resistivity. Oil or Gas is an insulator so resistances are much higher relative to saltwater.
Formation Resistivity Imager (STAR)- Gathers high resolution micro resistivity measurements to help gather geological and borehole features like faults, dips and fractures.
Circumferential Borehole Imaging Log (CIBL) - Makes a representative 360 degree view of the bore wall looking for fractures in the formation that would contain fluids.
Hexagonal Diplog - Gathers high resolution micro resistivity measurements to help determine formation dip (tilting of the strata) as well as borehole deviation (slant) and bottom hole location relative to the surface starting location.
http://www.bakerhughesdirect.com/cgi/atlas/resources/ExternalFileHandler.jsp?bookmarkable=Yes&path=private/ATLAS/html_pages/Products_and_Services/Formation_Evaluation/formation_evaluation_services.html&bookmarkable=Yes&channelId=-4214664
Thanks Tortman - I have to compliment Zion for actually answering in detail, a concern of a shareholder. Not that common an approach from some of the micro cap stocks I follow...
The inclusion into the Russell index is also a very nice sign of peer acceptance of Zion.
If anyone wants a laymen's explanation of the logging tools they plan on using on this well, just ask and I will post back. I worked in wireline logging for 10 years in the 80's in Texas.
Caliper Log, Compensated Neutron Log, Compensated Densilog, Gamma Ray Log, High Definition Induction Log, Formation Resistivity Imager (STAR), Circumferential Borehole Imaging Log (CIBL) and the Hexagonal Diplog.
From the PR:
"Zion is currently drilling its Ma'anit-Rehoboth #2 well to the Triassic Formation (down to a depth of 15,400 feet and then, it is planned, to the Permian Formation (down to a depth below 18,000 feet). Today, the drilling has reached a depth of approximately 15,750 feet. "
From today's PR, they have penetrated the first target formation, the Triassic at 15,400 feet. Some companies PR interim hydrocarbon shows during the drilling and others do not. With modern drilling tools like LWD (logging while drilling) and mud logging - they would have a near 100% certainty at this point whether the Triassic was hydrocarbon or water bearing.
Experience tells me that great news gets PR'd easier than bad news, wonder why today's PR made no mention of the Triassic target interim results?
King - yeppers, long time no post for you. Been wondering where you'd gone...
I hate to say it but I think things are worse than ever with Hemi. The only "real oilman" in the company, Craig T. (COO and field ops) left the company in April. The Jan. CEO financial statement shows company cash burn at about 6 times oil production revenue for 2008 (even with record high oil prices for much of the year). Asset sales kept Hemi in the break even camp on paper but we all know you can't grow a business (and the SP) by selling off your assets long term. O/S has probably hit the A/S by now too, was only ~13M away in January.
And the icing on the cake, the vocal defenders of Hemi here on the iHub board appear to have gotten mad and left. They took the ball and went home... or maybe to the Moon???
We don't even get that "feel good" post any more...
What!?!? You only need a 700% gain in the HMGP stock price to break even??? Man I am soooooo jealous of you....
Sad but true!
Until there is an official PR that indeed Craig has left HEMI, we can only speculate if it is indeed true and the reason for the move.
The HEMI website still shows Craig as COO:
http://hemienergy.com/contact.html
But then again, the HEMI website also shows that they are an OIL PRODUCTION company that utilizes EOR and that many o/g companies are undervalued at the current $100 per barrel oil price... Joyce must not be allowed to keep the website "fresh"...
Awesome!!! Thanks.
It was my understanding from reading the Rights Offering that Zion only had enough funding to drill to the shallower Triassic with the goal of raising enough funds to continue down to test the Permian. The recent Rights Offering time extension didn't mention whether sufficient funds were raised yet to drill through to the Permian did it? I wonder how close they are, funding wise, to drill that extra couple thousand feet? That would surely warrant a PR once they get the funding, no?
With all that potential in the Permian, they just have to get the funding and drill it - I am sure hoping!!!
Dang Badge, it looks like you're correct. Would hate to see this happen, I've only hung around with my investment in HEMI because I believed in him... Maybe the whole HEMI company is getting that long awaited buyout / liquidation...
I don't think Craig would put out his profile in a public spot like "linkedin" unless he's actually already out. The key parts of his BIO says it all:
I was responsible for all field operations for a pink sheet, NASDAQ listed public oil and gas company
Past (experience): * VP and COO at Hemi Energy Group, Inc.
I sure hope this isn't some "hack" job spoof of someone trying to get him in trouble or manipulate the stock....
Your optimism is heartening, I hope something good happens here soon.... You must be getting some good info on your trips to "the moon" !!!
The HEMI website shows some of the lease storage tanks and drilling / completion operations. I don't think they have any photo's of the pump jacks.
BigMur posted a personal photo of the Collins-Hemi #1 pump jack last fall to prove to the board that the well was real. I think all the gas it produced choked off the oil and it no longer is producing but who knows for sure. There are no KGS production (or sales) figures on that lease. Wonder why? It went into production early last fall.
Kels - are the HEMI "jack pumps" in SEK anything like the pump jacks other oil companies use in the rest of the world?? Just curious since you've been there and seen them...
Kels - unless you know and understand the difference between P1, P2 and P3 reserves, the ultimate recovery of this alleged 2.1 million bbls of oil is a guessing game. Did the geologist that came up with this figure classify them as P1, P2 or P3? Is this reserve report for HEMI in the public domain?
Industry norm generally classify P1 reserves as 90% certainty of extraction using present attainable methods. P2 reserves have a 50% chance and P3 reserves have a 10% chance.
My gut feeling tells me the 2.1M bbl figure was P3 reserves and thus the likely ultimate production would be way below this value.
About SPE Reserve Classification System
The Society of Petroleum Engineers (SPE) System is divided into three major resource
categories – Proved, Probable, and Possible.
Proved Reserves (P1 or TP for Total Proved): Reserves in which we have 90 percent
confidence that they will be produced economically using proven technology (in our fields) and
under current oil prices and operating conditions. The key is that we have sufficient production
history and studies to demonstrate the high level of certainty. This category is further
subdivided into two categories:
- Proved-Developed (PD): Production from wellbores currently in place, either perforated today
(PDP for Proved Developed Producing) or from future re-completions (PDNP for Proved
Developed Non-Producing), as long as the cost of re-completion requires "minor" capital
expenditure (capex).
- Proved-Undeveloped (PUD): Production from wells to be drilled in the future that have either
received funding approvals or have longer term development plans that the Сompany has a
track record of implementing.
Probable (P2): Reserves we have 50 percent confidence in producing economically. These
reserves generally fall into two categories – Probable-Drilling: undrilled areas of our fields
farther away from existing well or seismic data or in areas that have more marginal flow rates;
Probable Incremental Recovery: production from water-flood pattern reconfigurations/improved
recovery techniques or wellwork that need further time or field studies/pilots to demonstrate 90
percent confidence in. Proved + Probable (or the 2P reserves) are our most likely outcome and
should theoretically match our business plan but do not require an investment commitment
from the Сompany at this time.
Possible (P3): Reserves that we have only 10 percent confidence in producing economically.
This includes application of untested technology, drilling in areas of the fields that are
uneconomic today, or fields far from existing infrastructure (pipelines) that have no current
regional plans for accessing.
The 3P (Proved+Possible+Probable) represents the entire potential resource in our discovered
fields. The company will never plan on producing all these resources because of the 10 percent
confidence limit on P3.
"You can see that the tertiary production period yields zero to the working interest."
Since the majority of the HEMI SEK leases are mature, they have already went through the primary and secondary (water flood) stages of prime production. That is why present production is ~1200 bbls. a year off these leases, they are on tertiary or late secondary production.
The cost is prohibitive relative to the production as proved by KA's financials last Jan. It costs more to produce than they generate revenue from sales. Hence asset sales to show a break even 2008.
Sure, there is untapped gas all over those leases but you can't hardly give away shallow gas at present... Too much shale gas available that prices are depressed and wouldn't be worth the infrastructure costs at present to contemplate any gas development.
The key catalyst to help HEMI is to show some way to produce this OOIP economically. The horizontal well was a bold plan but time will tell whether it even gets spudded and if it does, will it unlock the reserves that are still in the Squirrel economically???
You give more credit to GN than I will... Sure he can find oil / gas but his mingling of personal and business finances leaves a lot to be desired. Let him find the oil but keep tight reins on him when it comes to finances is how you have to handle him. Overextended SNG's limited finances on the bet of stable / higher commodity prices. Without Liberty / buddy loan to Challenger / Libya concession / private aircraft leasing company, etc. I believe SNG would have had just enough to see the 3 wells through w/o going into default.
Just hope we come out above a buck. I will lose plenty but sure is better than the 30 cents we had a couple months ago. Sheesh!
"watching the show"... The Rocky Horror Picture Show that is, LOL... Wonder if Greg Noval and Keith A are distant cousins???
I would be extremely happy with a 10 cent a share buyout. At 100M shares (assumed all A/S are issued), that would imply a $10M buyout offer. Some of you that have loaded up sub penny would do really well, as would the officers. I would lose about 40% on my investment but that sure beats the 97% beating I am presently sitting on...
Hope your guesses are correct Badge!!!!
Sputnik - if you truly studied the KGS data, you would see that it always lags about 4 to 5 months in posting the production (or sales) numbers. The Hemi numbers only show Jan. 2009 figures. Oil production usually lags during the winter months due to the cold and operational issues.
Those numbers are not unique to Hemi either, if you knew enough about the competitors in the area like Haas or Piqua, you could look at their KGS numbers and see the same thing. Only Jan. 2009 data is presently posted.
http://abyss.kgs.ku.edu/pls/abyss/oil.ogl5.MainLease?f_lc=1001107627
http://abyss.kgs.ku.edu/pls/abyss/oil.ogl5.MainLease?f_lc=1001132978
C'mon Keith, let Craig drill that Silvey before Obama changes the rules....
Proposed Tax Changes Could Hurt Kansas Oil Industry
by Rick Plumlee
|
The Wichita Eagle, Kan.
|
Thursday, May 21, 2009
Proposed changes in federal tax laws would cost the Kansas oil and gas industry more than $150 million annually and put a chill on exploration investing.
That was the conclusion drawn by the Kansas Independent Oil and Gas Association after reviewing the Obama administration's proposed 2010 budget.
"This would be devastating to the oil and gas industry, not only in Kansas but nationwide," KIOGA president Ed Cross said.
Cross said the $150 million reflects only direct cost to the state's industry.
"The trickle-down impact would be much greater than that," he said.
Cross said the state collected $422 million in tax revenue in 2008 from the oil and gas industry.
The proposed tax changes would pump $36 billion into the nation's coffers over the next 10 years by erasing some credits for exploration and drilling, according to the U.S. Treasury Department.
Treasury Secretary Timothy Geithner has said oil and natural gas producing companies shouldn't receive significant tax breaks because the industry contributes to climate change.
But independent producers say the tax changes would create a burden for their industry.
"It would kill us," said Ralph Hamilton, president of Wichita's Duke Drilling. "This is a high-risk business.
"If they start messing with incentives, we'd lose a whole lot of business."
One of the two key areas of the proposed changes -- the percentage depletion deduction -- would affect only independents. Major oil companies are not eligible for the credit.
Changes being discussed involve tax credits that have been in place since the early 1900s to encourage exploration, Cross said.
He said independents drill 90 percent of the nation's wells, produce more than 82 percent of the natural gas and more than 68 percent of the oil. The figures are similar in Kansas, he said.
He said the average Kansas oil well produces only 2.27 barrels per day.
"So the margin of profit is not great," Cross said. "Removing incentives would shut down a lot of that exploration."
The Independent Petroleum Association of America, a trade organization, said eight areas of the proposed tax changes would cost the oil and gas industry $30 billion over the next 10 years.
Two of those eight areas would eliminate tax deductions for percentage depletion and intangible costs for drilling and development and would have the greatest impact on independents, Cross said.
The percentage depletion deduction allows a producer to recover capital investment over time.
For example, a well is worth less -- and would be taxed less -- as more oil or gas is extracted.
The percentage depletion deduction is available for all mining commodities, but the oil and gas industry is the only one that would lose it under the proposed changes.
"Oil and gas is being singled out for punitive treatment," said Dave Dayvault, KIOGA chairman and a Wichita accountant.
Wiping out the deduction for intangible costs would mean producers couldn't deduct for expenses incurred such as drilling and hydraulic fracturing.
"It would take away deduction for any services that produces things that are invisible to the naked eye," Dayvault said. "It would be a tremendous disadvantage for attracting capital."
Dayvault said the oil and gas industry has invested more than $1 billion in Kansas over the past several years.
"That level of investment creates jobs," he said. "This tax proposal puts it all at risk. It's detrimental to growth."
KIOGA has pleaded its case in letters to President Obama and to the state's congressional delegation. The federal budget will be finalized in the fall.
Until then, Cross said, "It'll be a full-court press. We're trying to educate policymakers about the economic impact."
Copyright (c) 2009, The Wichita Eagle, Kan. Distributed by McClatchy-Tribune Information Services.
Original source story: http://rigzone.com/news/article.asp?a_id=76386
LOL - so true, the story is not that manipulation has occurred in these pinkies being touted on a message board (just so happened to be our iHub one), the story is that they got caught and the SEC is doing something about it... FINALLY !!!
Every now and then the SEC actually do catch these pink stock manipulators... Just hope they get some real jail time and not some slap on the wrist..
SEC Charges Eight Participants in Penny Stock Manipulation Ring
http://sec.gov/news/press/2009/2009-117.htm
Calculation correction - I have been made aware that the well head purchase price for NG is often 50% to 75% of the Henry Hub market pricing due to adjustments needed for BTU content, impurities, transportation and compression charges.
The gross to HMGP for this one well example would therefore be on the order of $16 to $24 a day and not the $31.25 I previously calculated.
But this is really about HMGP getting name exposure to the XTO's and Chesapeake's of the world and not about cash flow / revenue right Kels, BigMur and REAZO??? Did I understand your replies correctly?
Barnett checkerboard lease strategy. We've all heard about how that was one of 2007 / 2008 acquisition strategy for the company. Let's make some assumptions here and play with cold hard financials again. Let the figures speak for themselves to see what Hemi could be gaining out of one of these wells if they were ever completed by the operator.
Assumption 1, Texas Railroad Commission requirement of 320 acre spacing (2 wells per square mile section).
Assumption 2 , overriding royalty holders get 25%, lease working interest holders get 75%.
Assumption 3 , Hemi has 6 to 8 checkerboard lots in this 320 acre spacing. Hemi's leased lot sizes were posted previously by Kels or Reazo and showed typical residential sized 1/4 to 1/3 acres each. Assume Hemi has 2 acres total position here.
Assumption 4 , well flows a nice rate of 5MMcf (5 Million cubic feet) per day and gas sales price is current Henry Hub pricing ~$4.00Mcf (4 bucks per thousand cubic feet is the May 2009 average).
In one days worth of production, 5MMcf divided by 1Mcf times $4.00 equals $20k a day. Land royalty owners gets 25% of that or $5K per day. Hemi would get 2/320 times $5K or $31.25 a day.
That sure isn't much revenue stream for a public company with 4 full time employees and >85 million shares issued. In fact, that's less than what I make per hour as an engineer.
Sources:
Barnett NG well production for CHK - http://www.chk.com/News/Articles/Pages/1277378.aspx
Henry Hub pricing - http://blumtexas.tripod.com/barnettshalegas.html
Gold_Man - thanks for the PM, I can only PM on the free happy hour so just wanted to say hello.
I fully understand your situation and the desire to stay low key on this message board. It does get pretty rough from time to time here. Best wishes and truly hope you make out well with your investment in this company.
April 2008 ~64M shares o/s
July 2008 ~67M shares o/s
Jan 2009 ~87M shares o/s
Gotta be close to maxed out at 100M o/s by now based on the recent trend. badta99 - you might wait 'til the o/s hits that a/s ceiling then your big buying might actually move the sp up. imho.
Thanks Reazo --- you're posts are always appreciated by me. You communicate well and lay out your case in a civil and thoughtful manner. Hope you are right and Hemi has more goods than the market believes them to have, time will tell...
Gratz on your local Mav's too... They fought like champs to extend the series against my Nuggets. Very big 4th qtr. for Dirk - he carried them tonight...
Man, I wish your valuation number was true. I would hope that if presented with a qualified 50 cent a share buyout offer today, HEMI mgt. would sell in a hearbeat.
Do you realize this valuation of 50 cents a share is 100 times today's closing stock price??? Take your "conservative" estimate into any bank and convince them to loan you $500k to take controlling interest in HEMI and then you could sell the assets for your $50M value ... Quite a return on your investment - no? I would think investment banks would do business with you if these numbers were reality.
Unless you know whether these "reserve" reports are certified and refer to 1P (P90) PD or PUD, 2P (P50), 3P (P10) - you cannot arrive at a valuation without any chance of accuracy.
Onco - a very astute question. Hemi has not released an updated public reserves report. I believe the old reserve figures are wildly optimistic (2.1 Million BOE of oil on roughly half the Hemi SEK holdings) based on actual extraction levels from these leases... Without seeing the entire report, it is hard to draw a conclusion as to the context of these reserves. The term EOR is mentioned in the reserve report, maybe these figures refer to the reserves if an actual polymer, natural gas or CO2 injection program was initiated. These would be very costly.
It was referred to in the June 2007 financials but was never released publicly in its full form that I am aware of...
http://www.hemienergy.com/hmgp_semi_annual_report.pdf (page 1)
"In the summer
of 2006 we commissioned Tectonics Engineering of Calgary Canada to do a geological study, enhanced
oil recover (EOR) and oil and gas reserve study of these leases. In September we were notified Tectonics
was unable to complete this report, we commissioned Geosystems Engineering, Inc., of Dallas, Texas to
complete this report. The Geosystems report concluded 2.15 million proved BOE (Barrels or Equivalents)
and probable reserve of 3.1 million BOE (revised down from 5,100,000 BOE as quoted in the Techtonic
report) for Hemi's five leases in Woodson County, Kansas. The total potential reserves are 5.25 million
BOE (Oil and or Natural Gas) for this report. "
REAZO - very good question topic, I wish I had time to help you research the "going" price for leases such as HEMI holds. You may want to view this online o/g trade website under the mergers / acquisition tab for recent sales. Of course as USC mentioned, you need to keep comparables in mind and ideally would want transactions geographically and size wise as close to what HEMI currently holds.
Here is the link to OilVoice's website:
http://www.oilvoice.com/open/acquisitions-mergers.aspx
This acquisition is only dated a week old and is the Cherokee Basin (NG reserves and production) so would be a good starting point:
http://www.oilvoice.com/n/Admiral_Bay_Resources_Acquires_Cherokee_Basin_Assets/98ba6876.aspx
Excellent observation Hillzman, I too came to the same conclusion.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36963035
Summary: 2 years ago, the problem was too much water in the zone so Hemi "dewatered" the leases, now in 2009 the problem is low formation pressure so Hemi wants to start a water flood program.
Maybe the easily gotten "movable oil" has already been extracted. I bought in to Hemi's story from their website and PR's claiming to be using EOR to unlock this "left behind" oil. Here is the Schlumberger Oil Field Glossary definition for EOR - doesn't seem that Hemi's used or planning to use any such technique any time soon.
enhanced oil recovery
1. n. [Production Enhancement] ID: 11160
The third stage of hydrocarbon production during which sophisticated techniques that alter the original properties of the oil are used. Enhanced oil recovery can begin after a secondary recovery process or at any time during the productive life of an oil reservoir. Its purpose is not only to restore formation pressure, but also to improve oil displacement or fluid flow in the reservoir.
The three major types of enhanced oil recovery operations are chemical flooding (alkaline flooding or micellar-polymer flooding), miscible displacement (carbon dioxide [CO2] injection or hydrocarbon injection), and thermal recovery (steamflood or in-situ combustion). The optimal application of each type depends on reservoir temperature, pressure, depth, net pay, permeability, residual oil and water saturations, porosity and fluid properties such as oil API gravity and viscosity.
Enhanced oil recovery is also called improved oil recovery or tertiary recovery and it is abbreviated EOR.
Well here's something positive to say about our company. Some here would argue I never post anything good to say. I would argue that I just post facts and figures and the negative appearance is just because "numbers don't lie"...
So here goes... Since the widely talked about reserves report from a couple years ago says that the SEK leases have several million barrels of oil, I can compute that 2M bbls. of reserves divided by 2k bbls. per year equals a 1000 years worth of sales at present rates. Now that's impressive !!!!
I don't think even the majors can say they have a 1000 years worth of "known reserves" at their present sales rate.
The debate over the KGS #'s was whether they showed production of oil (including tanked) or sales of oil (Coffeyville crude picking up a load).
Looking at KGS for 2008 as a whole, 1953 bbls. is the total Hemi amount on record there. KAA's financial report given in Jan. 2009 shows oil revenue in 2008 of $170K (net to Hemi). If I assume net to HEMI is 85% (mineral rights holder gets 15%) for oil sales, ($170k/0.85) / 1953 bbls = $102 bbl. avg. gross sales price for 2008. That's probably not too far off from reasonable.
That makes the average "monthly" sales total at 1953 / 12 = 162 bbls. a month. I too wonder what about the 600 bbls. a month in that early 2008 PR or the 1400 bbls. a month expected in one of Hemi's early PR's???
Some will counter that Hemi does not need to produce at maximum potential rates, they just want to prove up reserves for the eventual buyout. Would be nice, if true, that Hemi would PR these numbers, both potential rate of production and actual rates.
Thanks for the welcome EG62, I'll be poking in every now and then especially as they get close to spudding that next well.
That is the part of the o/g business I enjoy following, you never know what you've got until you drill it / log it and test it. Makes it fun (but expensive).
Do you have an o/g background?
Nice idea - and if the rig crew comes up a man short you can use the iHub member to fill in when they stack or lay down pipe to trip out for logging / bit change. That's always a fun job in the 110 degree summer sun...
What formation will this well be targeting? Another reef?
Kels - valid points and well articulated. Goes to show the difficult decisions that KAA must contend with whilst running our company on a daily basis. I do hope that he makes enough of the correct decisions to right this ship and thus our stock price.
I'd rather KA let Craig drill the well several months ago while the WYO asset sale funds were still in the bank. Now that oil prices are higher, they could be producing to take advantage of these relatively higher prices.
If they wait too long, the drilling companies and supply companies will be able to get higher prices for their products. Drilling when no one else was during the 30 buck oil environment would have allowed better prices, imho.
REAZO - I agree with your scenario and the prudent thing would be to shut the well in if it meant venting a lot of gas to get a limited amount of oil produced.
I just wish that if this is indeed the situation, that this would be in an official Hemi PR or website asset summary posting.
The stuff we see in Hemi PR's is about "oil bleeding out of the cuttings as I was holding them in my hands" (KAA) , "near blowout" during drilling , Texas type well - not your typical low pressure KS well, special high pressure wellhead equipment needed to complete the well, etc.
Then silence on the actual production, volumes, pressures, well status, etc....
"Change of attitude" is needed before I can get that kind of info huh? Thanks for making my point that this kind of selective information that some investors seem to have and others not have is a problem.
I consider my attitude towards HEMI, realism - I look at the limited information I can gleam from many sources and try and figure out whether this company's stock is headed up or down. I've tried to present solid facts and reference my sources as need be to bolster my conclusions.
I have no animosity to any fellow board poster here, I may not agree with their conclusions but I look at their facts / figures and see if it makes sense.
Here is some hard, cold data to ponder. Source is HEMI's own PR's and is shown in the iBox. Share structure:
April 2008 ~64M shares o/s
July 2008 ~67M shares o/s
Jan 2009 ~87M shares o/s
20M new shares were issued in 6 months during the last of 2008 time period. The o/s was only 13M away from the a/s of 100M in Jan. Where are we now? Maxed out or what - who knows? What asset was purchased for this increase in stock? who knows? Did it just pay salaries and office rent? who knows? What happens when the o/s reaches 100M, more asset sales to keep the fixed costs funded?
I see that the Collins-Hemi #1 is no longer "tight holed":
http://abyss.kgs.ku.edu/pls/abyss/qualified.well_page.DisplayWell?f_kid=1037888913
Drilled by Rig 6 Drilling Co.
Well completion Report PDF file shows well was drilled to the Arbuckle Limestone at ~1445' where well was TD'd. Completion was in the Squirrel Sandstone at ~800'. 9.5 feet of the formation was perforated at 4 shots per foot. An acid and sand frac job was pumped in to stimulate the well.
No initial production figures show on the report but do indicate both gas and oil production was noted. The gas was vented.
All this completion info is from Nov. 11, 2008. Can anyone tell me the production numbers to date from this well???? Is it even still producing?
Swordchaser - maybe Tibbs needs to get involved with this EDEX stock, things seemed to move in our favour when he became involved with our favorite Canadian NG stock - eh?