Hemi Energy Group Inc. (fka HMGP)

[bdahl385]

NOI on Collins listed TD at 1350' in the Mississippi Lime formation. The PR today shows current producing zone is the Squirrel Formation (normally 900-1000' level for this area). Untested zone in PR is uphole at 600'.

It's a good thing they were drilling with mud if the pressure is anything close to that in the PR. 2500psi from a 950' zone would be very, very uncommon.

The gas in the zone is kind of a mixed blessing. It is great for charging up the formation and allow the fluids to flow with great pressure. But without nearby infrastructure (read gas pipeline) it could actually hinder the wells oil production. The condensate can be stripped out and sold but the gas must be flared, vented or reinjected depending on the flow rate and Kansas environmental reg's.

Very promising zone though - congrats to the Hemi team.

Kel's / BigMur - do you remember if any gas pipelines were in close proximity to these leases on your site visits? I remember an early PR from Hemi stating that the nearest gas line was over 4 miles away and so chose to keep gas pay "behind pipe" on one of the older leases... Does that ring a bell?