Given the current economic environment and the softness of the energy markets I came away from my meeting with KAA with a very positive feeling about Hemi relative to the current conditions.
Are all items with Hemi at the current place that I would like to see?.......NO.
But it was very clear IMO that Hemi Management is currently navigating thru this energy cycle in very a responsible manner. The fact that Hemi remains a Debt Free company, and this was confirmed again at this meeting, along with the moving forward of this SEK horizontal drilling project demonstrates to me that Hemi is keeping its on eye on the mark for the current status of the company and is developing additional revenue opportunities for the future in a manner that does not put the company at risk.
Yes this SEK horizontal drilling project does carry risk but given the information, data collected, ability and knowledge (KAA,CT, Hemi employees and contractors involved)the benefits IMO outweigh these risks.
Just the fact that if this SEK Horizontal drilling project produces equal to a normal vertical well (1-5 BBL/day) in this given area of SEK, then you do the math of a 2000 ft linear horizontal run thru the squirrel of the Silvey lease, an area surrounded by producing veritcal wells; based on how many vertical wells would be needed to equal this one 2000 ft horizontal well.
Kels
