magnola, I think you've got it mostly right.
The 2007 flood was a lot bigger deal than even Hemi thought at the time. I do believe it took most (not just a lot) of the wells off line. Hemi was able to put many of the wells back online but they didn't all come back at the same rate as before the flood. I don't fully understand all the aspects of this but in order to help correct this, the wells needed to be dewatered (more so than before) and that's a slow process. While they likely did use some of the cash on hand to do this, I'm sure shares were used as well. This was part of the o/s increase. Also an important factor to look at is the amount of the claim... $1mil+. The current total company marketcap is well under just that insurance claim.
At last update, Hemi was debt free from the sale of oil and this was well after the floods. We all know the price of oil has dropped considerably in the recent months so I don't know if that was still true in Dec. But, we also know that Hemi just put $475k in the bank. Hemi has kept expenses to a minimum, negotiated good deals, and doesn't have huge interest payments to make so it is my opinion that Hemi likely still doesn't need to sell shares to maintain normal business ops considering what I posted above.
Last I heard, there are other businesses in the area still battling with insurance companies. This was a major hit for insurance companies in Kansas. Just like when hurricanes hit and cause major losses and insurance companies delay and try to not pay claims, the same I believe is/has been happening with this flood. I think it is in the hands of the lawyers now so who knows where this will go. All repairs have already been paid for and funded and any money collect from the insurance will go for future development.
Hope that helps answer your questions a little :)
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