Hemi Energy Group Inc. (fka HMGP)

[bdahl385]

Kels - looking at the data from the Owl Creek area gives me these conclusions.

1) In the 39 years of data (since 1970), extracted oil is about 2.5 million bbls. This probably took 1000's of wells over this time as old wells were P&A'd and new wells took their place. Since Hemi reserves in this area is stated to be in the 3-5 million barrel range, it seems that it has taken 1000's of wells over 39 years to produce only about half of Hemi's stated reserves on their 10k (plus or minus) acres. I conclude that the Hemi numbers must surely be overstated, these cannot be 1P reserve figures.

2) Looking at recent years, 2006 - 2007 - 2008 data, the active wells on average produce less than 0.5 bbls a day... Takes a while to get return on investment for this type of production.