Press Release Source: Hemi Energy Group, Inc.
Hemi Energy Group, Inc. April Update
Thursday April 17, 9:35 am ET
FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink Sheets: HMGP - News) The evaluation of the well logs and the drill cutting samples from the new well drilled on the Collins lease in Woodson County, Kansas has good oil shows from multiple pay zones. This well should be a good producing oil well after it is frac'ed and other completion techniques are finalized based on experience of industry professionals. This is not a mature lease and therefore should have longer lasting production at a higher rate than wells that are drilled on leases with mature wells in southeast Kansas. Hemi learned much more about deeper pay zones (the Company has declared tight hole status) from this drill site but this will not be divulged at this time for proprietary reasons.
An updated and expanded reserves report is in progress on our leases with wells in Woodson County, Kansas. The well logs and core samples from several new wells that we have drilled in this area will help expand our oil and gas reserves. This report will also begin to verify blanket geological formations of our much larger virgin leases' acreage that are adjacent and contiguous to the west and to the northwest of our five mature producing leases whose total is approximately three square miles.
Hemi has 64,394,000 shares of stock outstanding. Hemi has never issued convertible debentures, preferred shares or any other forms of toxic financing and Hemi also remains debt free. Neither Hemi nor Hemi's management have sold shares in 2008. Therefore, Hemi's opinion is that after hours postings are not shares being sold in volume but are predominately reporting of transactions from the day. Hemi's artificially low market cap is substantially below book value based on conservative oil and gas industry standards. We believe, as oil and gas reserves are proved up in several states, that a realistic value will be assigned based on assets.
Hemi Energy Group is an independent crude oil and natural gas producer employing a unique business model capitalizing on technological advances to exploit mature fields with millions of barrels of proven oil remaining in the ground. Using attractive lease/royalty packages Hemi has secured, in its history tens of thousands of acres of productive domestic projects. The company's forward-thinking strategy has placed it in an enviable position at a time when prices and global demand for oil continue to rise.
