Hemi Energy Group Inc. (fka HMGP)

[davidmarkblack]

The Kansas oil and gas industry is nearly a $4.7 billion industry that puts tens of thousands of people to work each day and pumps
hundreds of millions of dollars into the state’s economy each year, money that helps support families, fund schools, and build
roads. The Kansas oil and gas industry ranks just below agriculture as the most significant Kansas industry is terms of gross state
product. Oil and gas is produced in 89 of Kansas’ 105 counties and the average well depth is about 3,500 feet. The Kansas oil
and gas industry does more than fuel Kansas and help the Kansas economy. The industry fuels America and makes significant
positive contributions to our way of life.

Current Number of Oil Wells: 40,850
Average daily oil well production = 2.27 bbls.
Current Number of Natural Gas Wells: 18,376
Average daily natural gas well production = 63 Mcf
Current Number of Class II Injection Wells: 15,428
Current Number of Licensed Operators (Oil &/or Gas Producers): 2,113
Current Oil Production Level: 35.7 million barrels of oil per year 97,800 barrels of oil per day
Ranked 8th among the 31 oil producing states
Current Natural Gas Production Level: 370 billion cubic feet per year 1.01 billion cubic feet per day
Ranked 8th among 32 gas producing states
Number of Permits to Drill in 2006: 5,544 (2005: 3,704, 2004: 3,596, 2003: 2,626, 2002: 1,716)
Drilling Rate (Percentage of drilling permits actually drilled): 92%
Current Number of Wells being Drilled: 110
2nd largest industry in Kansas in terms of Gross State Product
Employs approximately 7,700 Kansans in the production process
Employs an additional 17,200 Kansans in related services
Contributed over $297 million in severance and ad valorem taxes during calendar year 2005
Contributed an estimated $300 million in severance and ad valorem taxes during calendar year 2006
Severance tax collections increased nearly 156% from 1999 to 2006
Ad valorem tax collections increased nearly 136% from 1999 to 2005
Kansas crude oil production declining by a Compound Annual Decline Rate (CADR) of 1.44% over the last 10 years
State crude oil production up 5.3% in 2006
State crude oil production been steady to increasing for 7 years
Last period of state crude oil production increase was 1979-1985
Kansas natural gas production declining by a CADR of 6.4% over the last 10 years


http://www.kioga.org/Newsletters/jan071.pdf