A very good time to review the last two weeks and understand a bit better what continues to develop with HMGP.
It is clear that many new faces have jump on board with HMGP and that many more continue to inquire about HMGP. So again I encourage those to:
- Read the recent PR's by HMGP since Dec 07.
- Spend some time of the HMGP board and review the many posts by many who have provided outstanding DD on HMGP as it relates to the HMGP PR's and
- Go to the HMGP website (www.hemienergy.com)
In basic terms, IMO, what is developing with HMGP is exactly the business plan and strategy that HMGP has employed since day one. The big difference is that HMGP is now confirming this business plan with very specific actions.
The story behind HMGP is a basic one; strong fundamentals supported by a sound business plan and strategy in a very strong O&G environment
The last two PR's by HMGP 04/22/08 and 04/17/08 provides the information for those anticipations of HMGP going forward, and most important, the validation on current HMGP events that many needed to hear.
The following from these PR's and my opinions about Hemi's current operation and drilling activities and the developments of this negotiation that HMGP is engaged in as it relates to these HMGP PR's:
HMGP 04/22/08 PR
"Hemi Energy Group, Inc. (Pink sheets: HMGP) is in negotiations to sell some of its leases, while maintaining royalty interest, to be pooled with other leases held by major oil companies in the Fort Worth area.These companies have major developmental drilling programs in the Barnett Shale leases they own and are still acquiring in greater Fort Worth. Hemi has added more and will continue to add to its checkerboarding lease holdings in Fort Worth that will absolutely be legally required "well spacing requirements" before major oil companies can obtain a permit to drill. They are also looking at the values of some of Hemi's leases far from Fort Worth, but within less than five miles of where there is active deep drilling of wells or wells producing millions of dollars per year per well."
The number 1 Hemi business plan from day one is a buyout, and IMO due to these Tarrant county, TX leases, the discussion indicated above are most likely involving XTO Energy, Devon Energy or Chesapeake Energy, the Big 3 of the Barnett Shale play
"Hemi's next two wells, to be drilled near term, are in the Cherry Creek Trend in Woodson County, Kansas. The Weseloh and Driskell virgin leases are in the above Trend and within a 4 mile radius of our 5 producing leases.
The results from the completion of the fracing and completion techniques on the Collins lease should give us a barrel count per day to be released before mid-May. Keith Anderson, Hemi CEO, on site during the drilling of this well, said, "Drill cutting samples from pay zones were bleeding oil as I was holding them." Mr Anderson continued to say,
The extrapolation of the results from the three wells, management believes, will add significant production and reserve values to our lease holding in southeast Kansas. Management's beliefs are based on well logs, coring and drill cutting samples, reserve report information and confidential information obtained from government sources, service companies and vendors in this area of Kansas."
Equally important, this is confirmation of the HMGP drilling season kicking in. Three new NOI were filed in Feb -Mar 08 and HMGP has completed one drill on the Collins-Hemi site and this drill went against all others for the area. HMGP drilled deep and came up with some outstanding finding.
HMGP 04/17/08 PR
"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."
This is what was needed to be confirmed by HMGP to put aside all those that were pounding the unfound story that Hemi was diluting its share structure.
Do go to far, because IMO HMGP has some very explosive developments in the works and those that are in HMGP today, again IMO, will be very well rewarded tomorrow.
Take Big Mur's advise: "DON'T BLINK"
Kels
