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Wednesday, 12/27/2006 12:03:47 PM

Wednesday, December 27, 2006 12:03:47 PM

Post# of 51429
Book of Hemi.

I've been reading the Book of Hemi after studying the UofK geological website. Interesting stuff. I am still too new to O&G to really have my head around it all yet, but I am going to get there. The Kansas leases are on a big field spread across many counties. Has anyone even realized that the projections in the PRs are for different sets of leases? The 900 (december) to 1400 (february) projection is completely separate from the 1500 (february) projection. Maybe I just missed that myself.

There is the Woodson county leases which the PR said would be about 1400 barrels in February. This lease will only have 50% of the well reworked by then, so I am sure the final numbers could be well over 2000 maybe 2500.

The 1500 barrels mentioned in the other PR is for another lease deal just completed. It is in a whole separate county. These Montgomery county leases are separately estimated to produce 1500 barrels in February.

I re-read Keith's email to lowman as well. "We will continue making disclosures. We will keep turning our cards over so the investors truly see what we/they have. I hope in the end, the readers take ALL THE PR's and read them like chapters in a book and have a complete picture of what they own"

Keith isn't trying to put their best foot forward in these PRs. He is slowly showing one card at a time. The MMs are playing Holdem' with a Texan and apparently that is really a bad idea.

Hemi's been at this for over 5 years. I don't really think that the leases in Kansas and a couple of other ones mentioned are all that they are holding. Their website says they have at least 80K acres leased. That's like 125 square miles and my guess is it is the cream of the crop of everything they have been able to come up with out of their research library.

I don't know if they are just now really starting to develop these leases or if they have been developing them all along. Probably the former, but either way they seem to be moving full steam ahead now with developing these leases.

You folks can go ahead and set your GTC orders in the high teens and twenties. I'll start thinking about selling after we break a dollar and then I might just think again.

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