In reading some of the posts today, good comments, and good review of some old topics. I wanted to throw in 2 cents on a few topics.
1) In regards to any buyout, I believe it would mainly be for the SEK business, with the other holdings just being the icing on the cake. If/when the updated reserve report is released, I am expecting to see some impressive numbers taking into account the new "Hemi Field" on these 10,000 acres.
2) I think Hemi is doing some things very well, especially with the pending ND deal. I can't wait for us to get some more info on it. This 640(?) acres seems to be somewhat peripheral to the core business strategy, so entering into some form of deal to gain revenue here is great, and will only aid in building the core business. More revenue = more wells = more growth.
3) Following point 2 above, and combining that with increased production (assumption at this point on the Collins and new wells in the area) we will have a solid emerging O&G company with dramatic growth in holdings and revenue. This is key for what I call "plan B" which would be no buyout, but rather make Hemi a successful small O&G company.
4) Tarrant Co leases. This has been addressed again lately, and the checkerboarding strategy seems to be working. These strategic leases ensure face time between Hemi and the big boys. Location is more important than size. At the least, Hemi will get royalties, etc. More likely, this will aid in a buyout scenario. Funny sidenote: Look at a map of the stockyard area and locate Hemi's office, XTO's Barnett Shale office, and Chesepeake. I don't believe XTO or Chesepeake can drill under their own location without asking Hemi first. lol.
bdahl - My understanding is that you don't actually need 100% of the land leased (but could be incorrect), but that there are restrictions to the drilling that Hemi is aware of and has acquired their leases accordingly.
I would absolutely like to see more done short term for the pps and hope that management have plans in the works. Please, Keith, please. However, looking at where Hemi is in their game plan and what is developing in SEK, things are looking very good mid-long term for the .05 stock.
AI
