Todays Hemi confirmation, next steps.
Let's keep the current discussion on this HMGP IHUB board to Hemi including today's Hemi confirmation and Hemi next steps as outlined in the 10/06/08 PR that support the prior 2008 HMGP PR's
First, this WY lease transaction that Hemi has just completed IMO opens the door to a number of options by Hemi that will now provide Hemi flexibility and leverage to move forward in the development of the SEK leases, utilizing horizontal drilling to maximize the Collins Hemi-1 findings and surrounding SEK lease sites while maintaining the current debt free status of the company.
What I find very interesting is that all the attention was focused regarding the potential sale of a Hemi lease was concentrated around the Bakken (ND) leases and the Tarrent County/Sabine County (TX) and out of the blue Hemi puts together a deal and delivers on the little known Wyoming lease deal for $475K Net in proceeds!
I do hope that this action by Hemi puts to rest those individuals (or at least keeps them on that "Friendly" board) that keep stating that KA was just sitting around in "The Stockyards", unloading Hemi shares to raise cash...........IMO.....lets get real to those that keep stating such an opinion.
More importantly Hemi now has $475k in working capital to put towards the business model and strategy that IMO will focus on SEK and the HUGE opportunity that SEK provides to Hemi.
Say what you want, but again a number of us on this HMGP board have been to SEK, toured the SEK leases and have spent many hours DD'ing this area and the Hemi approach. And IMO this is heart of what an investment is all about; understanding the metrics and fundamentals that lie deep behind the investment and having the patience to let the business plan and strategy unfold.
Next Steps for Hemi IMO:
1. Horizontal drilling in SEK involving the Collins Hemi-1 lease site and the surrounding site around the Collins Hemi-1; Reno, Tebbins and the Purnell sites.
2. Moving forward with the development and infrastructure needed to bring the SEK gas to market.
3. Additional re-works of SEK other lease sites to compliment and enhance the oil production to increase revenue.
4. Continue to explore deal opportunities for the other non-core leases. Rememeber the Bakken was under a definitive review and my understanding is that the interested group is still there and involved in discussions with Hemi.
My point is that the actions/confirmation of today Hemi PR and the steps outlined from the 10/06/08 PR as well as the prior 2008 PR's are all intrinsic to the Hemi business plan and strategy.
Hemi remains consistent to its mission business statement as outlined on the Hemi web page and IMO has convey to the retail street a major action/step to this business strategy delivering a needed and very smart business action per todays PR.
More importantly todays confirmation now provides Hemi with the capital to move forward and develop SEK........horizontal drilling and with the right deal with a pipeliner develop the infrastructure needed to bring the SEK gas to market.
And yes, and most importantly, this transaction allows Hemi to remain Debt Free, expanding the current HMGP operation and provide increased value to the overall assets of Hemi.
Kels
