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White house race appears over now that both Ohio and Penns. went to Obama. At least my home state of GA will likely return senator Saxby Chambliss and turns back a pick up of another Demo. senator. Now if MN can keep Franken out, that should at least keep filibuster power intact. About the best that the Repub's can hope for out of tonight it seems....
WOW- that equates to a 21% paper loss for that poor person that got the 300K at 0.014 only a short 1.75 hrs ago....
A very relevant question. I sure don't want this new lateral well to have to vent thousands of dollars worth of NG a day just to produce the oil like in Collins. No way, better to keep the NG and oil in the ground than to just let it loose....
Here's Hope - example of disconnect between market cap and asset value of an o/g company...
Ran across this tidbit on another message board. The stock in question (IAE) is Ithaca Energy - a small cap British company.
Take a look at the IAE news release tonight it shows how undervalued oil and gas juniors with oil finds are at the moment. An independent company paid IAE C$75 million for 25% of its assets, even though the entire market cap. of the whole company today was only C$39 million. Thus the shares are trading at about 1/8 the price that they are worth if the company were to simply sell its assets and distribute the cash.
Too funny!!!
Oilslick - Below is an exact copy and paste of my email. I will let you and others judge it as to whether it seems adversarial in nature. Originally sent my first email Aug. 7, resent it Sept. 21 and then the third and final time on Oct. 1. No reply to any of the three.
To: info@hemienergy.com
Sent: Sunday, September 21, 2008 12:41 PM
Subject: Re: Hemi investor question
Keith,
I am resending this email from Aug. 7 as I did not see a reply. Specifically, I am very interested in the status of the insurance claim. Is there any info you can talk about such as the present status, the amount of the actual claim and the company name that the insurance is with? This to me is such a big financial story as the claim in theory could be worth almost the entire market cap presently for Hemi. The stock dilution caused by the need to issue shares last year to fix the flood damage was unavoidable, we investors realize that. Now, the question is, what about the "insurance claim"? Hemi has mentioned it in a PR but there hasn't been an update for several months now. What is the expected timeline for payout and what does Hemi plan on doing with the settlement funds? I would also like to post any info you can give on the iHub board to let all investors know but will do so only if you give the okay.
Best wishes and I was encouraged by your recent email to Kels about getting serious about the implications of the stock manipulation and outright criminal activity that has occurred on the SEK leases. When I had my oil lease in Petrolia, TX - I was so angry to find pump jack motors and vacuum pumps stolen off my lease several times. I am glad to know you will prosecute and put these responsible parties in touch with the law, especially in light that they may be involved in the actual stock manipulations.
Regards,
Bxxxxxxxxx
I think replies coming back from KA depends on "who you are"... When a new stockholder, I received email replies from KA to my questions in a very timely manner.
Now I feel I am labeled as a "disgruntled / questioning" shareholder and my last 3 emails to Hemi have went unanswered. I was simply asking about an update on the "insurance settlement" progress and how that money would be put to use. I sent the original email in August, followed up in mid Sept. and one last time on Oct. 1.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=32318965
Maybe phoning in will yield the answers you are seeking...
Good reasoning Detail1 - I agree wit' ya!
IMO, the company can no longer stay "monthly cash flow positive" just from oil sales because prices are now around 50 bucks a barrel for their grade of KS crude they are producing. This is down from ~120 bucks a barrel in July. Along with the lower sales price, I wouldn't be surprised to see the overall quantity of crude being produced to be in natural decline as well. I don't think that the Collins well by itself will supplant the lower oil produced on all the other leases.
Now if they were actually doing some kind of EOR like their website touts (and one of the main reasons why I initially invested into Hemi) instead of "dewatering" the leases - maybe the older mature wells would be increasing and not decreasing.
My WAG is 11/19/2008 7:30 PM
How true - a lack of the needed super majority threshold of 60 in the senate is all that could keep a Democratic president and HR in check. Right now, projections are showing a 59-41 outcome. Form this map below, the key states are GA, KY, NC, MN and AK. I hope that some weak Obama voters pull the switch for a Republican senator just to have a "check and balance" in place.
http://www.electoral-vote.com/evp2008/Senate/Maps/Oct29-s.html
There's plenty of blame to go around - it amazes me how Bush gets all the blame for the federal government's failings. Look at your net worth from 2 years ago - that point where the Dem's took a huge majority in Congress and assumed Majority status. My net worth was at a peak, the economy was doing great. Remember that as dismal as Bush's popularity is, it is higher than for the Democratic controlled congress!
Pictures are so much more powerful than words - touche Real !!!
From another investor board website, I saw a post about a small pink o/g stock and they linked to a website called http://www.pinksheets.com for their rating called "OTC Market Tiers". I looked up the quote for HMGP at this website to see how they classified the stock according to this rating system. It comes up in the classification of "STOP - Pink Sheets - No Information" within a further class called "Dark / Defunct". Link: http://www.pinksheets.com/pink/otcguide/investors_market_tiers.jsp
Their definition of this classification sounds like they were talking directly about HMGP:
"Indicates companies that are not able or willing to provide disclosure to the public markets - either to a regulator, an exchange or Pink OTC Markets. Companies in this category do not make Current Information available via the OTC Disclosure and News Service, or if they do, the available information is older than six months. This category includes defunct companies that have ceased operations as well as 'dark' companies and/or companies with questionable management and market disclosure practices. Publicly traded companies that are not willing to provide information to investors should be treated with suspicion and their securities should be considered highly risky."
Sorry DL2 - you are wrong about that one. Collins was completed and they had the gas problem to deal with since it was interfering with the oil - remember that PR quote from KA about "having to vent $5000 a day in gas" when first completed???
The well may not be producing in optimum condition due to the gas problem but it has been completed. Now there is always re-completion techniques that could / will occur but you can only complete it once - then you re-complete and/or workover.
Indeed Manti - I just looked at the O/S of some of my blue chip holdings like Pepsi, Home Depot, Exxon-Mobil, etc. and they have between 1.5 and 5.5 Billion shares issued. Yet, each year, I get a proxy card to vote at the annual election and right there on the card is my name, address and number of shares I own (both papered certs held in my safe deposit box and brokered street named accounts). Now if they can keep up with billions of shares, wouldn't it seem easy for a low float stock like Hemi with maybe 40 million shares out there to have an accounting of who owns how many?
I agree that the trading here at Hemi does indeed smell of manipulation at times but I still am not convinced that there is a very large number of "air shares" out there and that is what is suppressing the SP of our company.
I just hope that KA keeps up the vigil and follows through with his latest promise to track down and stop this illegal trading and / or manipulation.
BTW, I read several posts today that here it is winding down on 2008 and we've only drilled and completed 1 well... Did everyone, including KA, forget about Weseloh? Remember the plan was to drill 3 wells back to back to back since they were all funded and had a rig ready to roll. Driskill never happened because Collins was too good (?) and the plans changed to save the money to exploit the Collins lease. Can someone tell me again about the production results from our other 2008 well, Weseloh???
DL - the vertical portion of any horizontal well is stopped short of the payzone. You cannot bend the well bore 90 degrees into the zone. You stop short and then do a radius bend to get down to the pay zone and then out horizontal through the zone. The amount of radius bend depends on the drilling equipment technology employed for the well.
Bottom line is that you wouldn't penetrate the Squirrel with the vertical section of the well.
Kels - I don't think you can expect the drilling rig companies to switch out in mid drill, that just isn't a realistic option. I would expect this lateral to be drilled with the newer coiled tubing technology where the downhole assembly is a drilling mud powered hydraulic motor and guidance package that the driller steers with a joystick from topside.
One thing to keep in mind is that the horizontal section length will be limited by the lease size. You can't extend the well bore under different leases since there would be no way to divide up the oil / gas for the mineral rights owners. There would have to be separate wells on the Collins lease, the Weseloh lease, etc. Since I believe the leases are on the order of 500-700 acres each, that is roughly a square mile so the lateral length of each could still easily be thousands of feet. That would be limited by the formation being consistently blanketed across the lease.
Fox Petroleum Tests Positive at Geneseo-Edwards Field
Fox Petroleum Inc. Monday, October 20, 2008
Fox Petroleum has announced the success the first two Kansas wells of its 10-well drilling program in the Geneseo-Edwards Field located in Ellsworth County. Early results suggest that each well will initially produce at least 1,500 barrels of oil per month, with sales of oil produced from the first well expected to be sold as early as this week. Fox anticipates that when the remaining wells are drilled, production from the acreage will increase to levels in excess of 15,000 barrels per month, generating significant near-term revenues to the Company.
In addition to the first two wells, the third well in Fox's 10-well Kansas drilling program reached its total depth late last week. Initial results for the third well show estimated production numbers in line with the first two wells. Fox Petroleum anticipates production from the second well to start later this week, with additional hopes of the third well being in production this week as well. Spudding of the fourth well is expected later today. Plans are already underway to acquire further acreage in surrounding areas for further low risk in-field drilling.
Richard Moore, Fox's Chief Executive Officer, commented, "We are very pleased with the initial results of our Kansas drilling program. The production of the first two wells has exceeded expectations, and will hopefully be a trend that continues as we complete the rest of our 10-well program while assessing the addition of another four wells upon completion. Despite these early positive numbers, Fox is also looking at ways to boost production in the short term."
William MacNee, Fox's Chief Operating Officer, said, "We are pleased to be seeing the results of our drilling program, after it was delayed during the summer due to adverse weather. With a possible fourteen-well drilling program we intend to push hard to get as many wells as we can into full production as soon as possible. We are working towards increasing and maintaining production on these initial wells in the near term, as we see the big potential in the results we've received so far."
Regarding that $475K net to HMGP - I was hoping for something in the $100K range after the initial Oct. 6th PR since the WYO lease was not ever touted very much even amongst the Hemi stalwarts. The $475K amount was a very nice surprise indeed, now if only the SP will give KA and Craig some credit here.
FWIW - I actually bought my first lot of HMGP in over 5 months Tuesday at 0.019 hoping for a nice PR and that upcoming lateral Squirrel well. I had another GTC in at 0.017 and never got filled yesterday or today even though some were lucky in getting that 0.017 today.
GLTA - even though the low oil prices are impacting our o/g investments, I believe they are a Godsend to help the world economies out of this financial tumult we are in.
Yep Hillzman- with the unreal volume of HMGP the last few days - I think it prudent to assume a few new shares are making it out of the stockyards vault. Just hope it's going to good use.
You think they'll actually drill a horizontal well up there in the next 30-90 days or is this the ultimate carrot?
The HMGP outstanding share guess...
Feel free to add your guess...
Manti----------82 million
Badge ---------77 million
Realperson-----100 Million
coydog---------88 million
Hubbabubba1----84.5 Million
bdahl385-------72 Million
hillzman-------72.5 Million
pennyjunkie----95 million
Rules clarification: This is a guess of what the OS will be when it is next officially announced in a PR by Hemi, not what it will eventually be or what it is now. Feel free to change your guess up until the time the PR comes out. Have fun!
Manti - the last PR stated that the WYO lease sale would be used for a "multi well horizontal drill program". As usual, the PR is lacking specifics as far as the dollars involved but if you take it literally - there is no need for issuing stock to fund this.
Even with 3M shares trading today, that's only $60k worth of stock at 2 cents each. Not chump change for me but sure is for many a wall street investor.
See - I knew Hemi was monitoring this board... Hello Keith, John and Craig. Drill, baby, drill ! Oh, and make it a lateral while you're at it...
Yep - time to go Squirrel hunting... Squirrel sandstone oil hunting that is.
Can't wait for the NOI to post on this - sure hope the Wyoming deal gets finalized on the 15th as expected to fund this bold drill.
What if??? Hemi got $'s from the insurance settlement and/or the Wyo. lease sale early and are accounting for this large trading volume in stock yesterday and today? Could be gathering data on the action of the MM's and then report the manipulation of the guilty parties to the SEC. How much stock can a public co. buy w/o having to preannounce? I hope pinkies don't have these requirements, they don't have many regs it seems...
KAA said he was gonna slam the door on the toe of those messing around with the SP, maybe he is pulling the trigger as we speak.
I think we can all agree that whatever value there is in Hemi's leases, they are worth a heck of a lot less now than 3 months ago. Look at the rout in the financials and o/g sectors. I am not knocking Hemi here but we all need to be aware of the fact that whatever value they once had, we are probably looking at less than half now.
Just macro economics at work folks... It's frightening and sickening too.
Zecco.com lets you make 10 stock trades each month for free (with $2500 in assets or cash). Because of some web site snafu's in September, they are offering existing customers unlimited free trades in October. I have used them to buy my last two lots of HMGP stock for zero commissions. Maybe these very small lot sizes are coming through Zecco???
http://www.zecco.com/forums/-requirement-for--free-trades-41200_1.aspx
Peter - FWIW, I have had the same thought about those PR's lacking good communication skills for some time now but chose not to take it public in the forums. After all, "3rd generation oilpatch" management aren't expected to be English majors are they?
Thanks Badge - after having a knot in my stomach all day with the carnage to my portfolio, I got a great laugh out of that one. Still smiling of the vision of that bushel basket being carried back to the stockyards.....
What's your "best guess" as to those Wyoming assets? Raw land only or was there some production on them? How many acres - any idea?
From my DD in this area of the Bourbon Arch, although there are quite a few separate coal seams to exploit, they are relatively thin at 1 to 3 feet thick on average. This would be very difficult to drill horizontally IMO.
I assume from today's PR that they would be going after the Squirrel sandstone oil zone which is about 10-15 feet thick from most well and driller logs I looked at on the KGS website.
I am afraid some of their plans was based on oil selling for >$120 a bbl, not the sub $90 stuff we have now. NG prices are way lower too, below the price where the shale gas players can even break even. Hope KAA pulled the trigger and sold some of that "tanked oil" he PR'd a while back waiting for higher prices....
Until the world economic situation gets some kind of a floor built up, energy is in a steady price down turn and will not bode well for producers...
The HMGP outstanding share guess...
Feel free to add your guess...
pennyjunkie--100 million
Manti-----------80 million
Badge ---------77 million
Realperson-----100 Million
coydog---------88 million
Hubbabubba1---84.5 Million
bdahl385------70.5 Million
Indeed, this long time span between PR's must mean something meaningful is cooking. Can't wait until the new PR comes out, gotta be any day now I would think.
I would hope for news on:
1) Gas marketing plans for SEK
2) ND Bakken lease deal update
3) Production numbers for the new Collins and Weseloh wells / or the other mature leases since February
4) New leases picked up - say Eastern Oklahoma to fill in the land gap between SEK and TX.
5) New O/S numbers and float totals.
6) Flood Insurance claim settlement update
7) Further news about the stock price manipulation and/or investor fraud for the SP tampering by the field sabotage attempt
8) New drilling plans to exploit the Collins lease
9) Financial numbers of any kind
10) Reserves report update
11) ???
WOW - 3 month penalty box on the HEMI board... Too bad, you must have really hit one out of the park to get 3 months! What was the post that did you in?
Looks like the post volume is about to drop big time:
Member Date Banned Banned By Banned Until
Badge714 10/01/2008 10:09:33 AM IH Admin [Matt] 12/30/2008 10:09:33 AM
Some interesting well completion results in North Dakota. I beleive that Hemi holds 640 acres (one section) on the Burke / Divide County line area.
Here is a map link of ND for this, look in the extreme NW corner.
http://quickfacts.census.gov/qfd/maps/north_dakota_map.html
Here's the PR;
http://www.oilvoice.com/n/Continental_Resources_Announces_Additional_Well_Completions_In_North_Dakota_Bakken_Shale/903fbc53.aspx
Two observations I came away with per this PR and others I have seen in that area of the Bakken. The well results in Burke / Divide counties seem to be consistently lower than those in Williams Co. to the South and others more in the heart of the Bakken trend. The other observation is that these wells are drilled as laterals (horizontal sections) on spacings of 1280 acres (two sections). That would mean that Hemi's 640 acre block would potentially be too small for drilling a horizontal well completion by any acquiring company if this is a mandated spacing or economic spacing requirement.
Thanks Big for your point of view on this...
It would make sense down the road for Hemi, once they start selling their conventional NG, to go ahead and drill and complete a CBM well just to prove up the production rates from the various coal zones present under their leases. The coal seams are 1 to 3 feet thick so vertical wells are the conventional completion technique here from what I've researched. This is much cheaper, but less productive, than some of the horizontal completions used in thicker coal seams or shale gas plays in other areas.
It's one thing to have "theoretical" reserves based on logs and cutting samples (or cores) and another to have actual production numbers with pressures and flow rates over time.
This talk today about the NG pipeline being 1/2 mile away from Collins lease started me to thinking about the desirability of bringing both the oil and gas to market simultaneously. Here I am referring to the CBM gas and not the normal NG found in the Squirrel zone of the Collins well. I became confused when reading a couple of comments KAA made about this. From the email post from KA dated 9/7/2008 that Kels posted a couple days ago:
"Nothing has changed there and each drill proves up or expands our proved CBM reserves along with the oil reserves. Reserves are everything in this business, hence the term where petro dollars come from and that will be what is sold in any future buyout not production. All you have to do is read the news and SEC filings of acquisition disclosures that the large gas producers have made. I am going to stay on this subject for a minute, if we do build a pipeline and start to sell gas, this is a very desirable thing in the eyes of a potential purchasor[sic], because there are few in the area allowing gas to be transported to market.
In 2005 when we acquired some of these leases, we learned to stimulate the oil zones and prove up the CBM zones would be much to big of an undertaking. We are talking $100,000,000 or more to do both. To prove up the and stimulate the oil reserves and to also prove up and produce the CBM (they cannot be co-mingled each needs its on[sic] borehole and specialized equipment)".
Source: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=32268007
Now read this statement again from KA in a PR dated 5/14/2008:
"Hemi President Keith A. Anderson issued this statement: "The high crude oil and gasoline prices has impacted each and every American, as the world seeks alternative sources of energy and CBM gas is a renewable energy resource. With that thought in mind, Hemi has been drilling and developing wells, we have been employing the highest levels of the industry standards for drilling and completion techniques which will allow these wells to continue producing decades into the future. Due to the current economic climate we have focused on crude oil production, near term. While choosing to leave the CBM gas behind pipe as proved undeveloped reserves for future use. Converting the current oil wells into CBM gas wells or comingled CBM gas/Crude oil production wells will be a relatively simple, straight forward, low cost conversion of these bore holes."
Source: http://www.hemienergy.com/05-14-08.html