Hemi Energy Announces Developments in Texas and Kansas Leases
A multi-billion dollar oil company on the New York stock exchange, with home offices in Fort Worth, has asked Hemi Energy Group, Inc. (Pink Sheets: HMGP) for geological information for our Sabine, Texas leases and also some leases we hold in other states. There are dozens of producing gas wells that are only approximately four miles from our Sabine leases. These gas wells, of several major oil companies, have an average revenue of $2.5 million per year, per well and some have substantially greater revenue. These gas wells in Texas also have long life and slow decline curves and an economic life of ten or more years.
Hemi has acquired, for cash, additional Barnett-Shale leases in Fort Worth since our press release on April 22nd. These additional checker-boarded leases will absolutely be legally necessary to be pooled with their leases before these two companies, with major urban development drilling programs, can begin to drill. The multi-billion dollar oil company, with home offices in Fort Worth, is also showing interest in our Barnett-Shale leases in Fort Worth.
The rain in Kansas that had saturated the ground in the area of this well and delayed the completion of the fracing techniques and thereby the barrel count per day but results will be available any day next week from this oil well. The new oil wells will be drilled next week on our leases in the Cherry Creek Trend in Woodson County, Kansas. There will be no delay on drilling the new wells because all supplies necessary for drilling these virgin leases are already in place. The ground condition on the lease location to be drilled has been prepared and therefore rain will not be a delaying factor. McPherson Drilling LLC has been contracted to drill these wells.
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 milllions 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.
