And IMO this is why I stated and do strongly believe that Hemi is working very hard behind the scenes on this very area within SEK.
"Get the natural gas to market. If this means they have to temporarily flare the gas to get the oil and get that cash to pay for the pipeline, so be it. The pipeline only has to go approximately a half mile (~2600 feet)to get to a point to deliver the gas. It wouldn't take an unreasonable amount of time, with some increased production from the mature wells, and then the production that can be achieved on the Collins Hemi#1. OR, Hemi could even take a short term conventional loan like they did for the pulling rig, just to get this pipeline in. It could be repaid relatively quickly.
The point is to get this gas to market. The path to the main pipeline also makes it accessible for the newer wells on mature leases that have CBM behind pipe... if Hemi doesn't want to make use of that at this point, it will make for a sweet situation for whomever acquires Hemi.
This could open the floodgate for Hemi to be able to then move forward."
Yes the gas "pipelining" market is very limited and very restricted in SEK and gives the appearance "on the surface" that these pipeline companies control the market place "pricing pirates"; but on the flip side an opportunity for the pipeliner to partner up with a new customer (such as Hemi) that has the gas potential and availability is also a very big opportunity for this pipelining company and based on this; then negotiating the right deal becomes a business benefit for both parties on an equal playing field.
IMO other O&G Companies within SEK can not bring to the the table the gas opportunity that Hemi has developed and the Collins Hemi-1 just adds more to the Hemi gas table.
Meaning that the company (Hemi) has the gas (quantity) that the pipeliner wants to move and the pipeliner has the infrastructure to move the gas for the producing company = both parties produce more revenue = both parties increase profit potential.
Kels
