You raise some very valid points. Each investor now has the decision to make if they feel Hemi's business model will allow the investment made in the company by buying stock to be worthwhile.
Look at the fixed costs in this document, do you think that the salaries, vehicle, travel, office rentals, etc. are in line with the future revenue stream coming in? If cash flow from oil sales and gas royalties do not pay these fixed cost bills, then I see three ways to fill that gap. 1) Issue stock, 2) Issue debt, 3) Sell assets. None of those are good options as far as making my stock investment profit.
Remember too that o/g production from a lease is a wasting asset. If that horizontal well comes in and makes good production numbers, that helps the cash flow in the present. However, each barrel of oil extracted lessens the value of that lease by reducing its reserves and thus its value to an acquiring company. It's the long standing view of the Hemi supporters that the end game and big payoff is in the sale of the company. Just hope they can keep enough assets and oil reserves to make this outcome realized.
