Received the following update from Keith Anderson about 30 minutes ago. He asked that it be shared with all the shareholders we know.
"This is a link to the IOLA paper... IOLA is about 10 miles east of the Woodson County leases, IOLA is the place we would stay when we are doing field operations.
Operationally we have taken a pretty severe hit, how bad I do not know yet, all our people are ok, although they have suffered some pretty extensive personal losses also. We have numerous wells underwater, surface equipment condition is unknown. All is insured so this is not a consideration... as much as the time we will be spending to replace and repair.
I am very proud of our field crews, as well as our shareholders should also be as proud of them as we at Hemi are. Yesterday morning I got a report from Jerry that all hell had broken loose in Piqua and IOLA, many of the local people in Eastern Woodson and Western Allen County were cut off from help, because the Neosho river and other creeks had cut off highway 54 and all roads leading to Piqua, no way the National Guard or law enforcement to access the people in the area. I called the Allen County Sherriffs department and we volunteered use of our "Big Ugly" M813 Military Truck. Jerry met an Allen County Deputy... they loaded a boat into the Big Ugly and proceeded to rescue 6 of the local people which no one else could get to, then proceeded to find a way into Chanute where these people were safetly delivered.
Today Jerry made his way into IOLA and is going to continue helping the local authorities and people. I thought our shareholders should know this is the type of employees we have in KS, for them to be suffering personal losses and yet willing to do what they can to help out in a time of emergency.
As far as Hemi goes we are going to be ok, production has not stopped and we are still online in a very limited manner, but I guess those of you that have been watching the news, our new purchaser Coffeyville refinery is having quite a rough time of things also, so near term we maybe producing and tanking oil. It is too soon to even speculate on if and when we will be able to start selling oil to them again, we may have to go back to plains short term.
We have had months of wet ground in KS leading up to this flood, I suppose this flood outcome was inevitable... I, Craig and others will start discussing getting things back in order in KS as soon as possible and start grudingly looking at other drilling options such as on leases in Texas, North Dakota, New Mexico or Wyoming.
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