Hemi Energy Group Inc. (fka HMGP)

[bdahl385]

EOR was one of the reasons I first invested with Hemi. It was prominently touted on their website (still is) while I was first doing my DD on the company. I felt that the type of leases they were obtaining had already been through primary and secondary production and would be well suited to this newer technology. In fact, the website sounds like they are already using the EOR.

From Hemi website under Plan of Operation tab:

Overall Strategy
We are a growing independent oil and natural gas company that intends to actively pursue enhanced oil recovery techniques (EOR) and developmental drilling to increase production and reserves at our existing and future properties. Our primary focus is crude oil and our target acquisitions are onshore U.S. properties. Our focus on domestic, mature oil fields eliminates exploration risks and the uncertainties of international sources. We use waterflooding and EOR technology, such as surfactant-polymer technology.

So far, the only strategic operational info we have regarding the SEK leases is "dewatering". This is simply the process of reinjecting the produced water in another zone than where it came from so as to increase the cut (ratio of produced oil to water). This also reduces the pressure of the producing zone and causes less fluid to enter the well bore. I believe this would be the first step to go to tertiary (EOR) recovery. My own personal experience as an oil operator only dealt with secondary recovery (waterflooding). I do know from researching the subject that the use of polymers and other fluid enhancing chemicals is very expensive.