OK bdahl385, I guess that you want to bounce around on your own Hemi topics that only go down the road of your own personal problem with Hemi.
Not sure how your most recent post addresses the EOR explanation that you provided regarding the process as it affects the "Soda" or "Fizzle" analogy.
We can debate this until the "Cows Jump Over the Hemi Moon" about the Hemi financial numbers and picture but the bottom line is that Hemi for 2008 showed a NET PROFIT and remained DEBT FREE.
Going forward??? Well if we could read what was going to happen going forward
Guess what??? We would not be here on this board now would we?
Hemi Energy is an emerging O&G company and with any emerging company the level of risk is always higher, much higher.
This IMO is a given and if one approaches this type of emerging company with the expectations that many on this board are demanding within the time frame of Hemi's current existence than IMO you have set yourself up for failure.
Hemi's business strategy is straight forward and has been identified by Hemi since day 1. Hemi continues to move down this business path maintaining the core objective within SEK. To help Hemi in this process, Hemi has been able to obtain leases out side of the core SEK objective as a means to provide additional assets and value to the company.
Did you really think that Hemi was going to move it's operation into WY and develop that lease?
Instead Hemi obtain that lease and as part of its going forward business strategy sold that lease for a profit and committed those funds to the on going SEK primary objective of developing further Hemi's core leases in SEK. Example Hemi has positioned itself with the Silvey Hemi-1 site, readying this site to be in position to move forward with a horizontal drilling project.
And how about those Texas Barnett shale leases?
Many on this board kept suggesting that Hemi develop those leases by exploring the possibility of putting in a Gas Pipeline to the tune of 300-400k. But instead, Hemi turned those leases around and entered into passive agreements with XTO and Chesapeake Energy as additional sources of revenue, still keeping those leases on the table for possible re-sale. Again part of that Hemi business strategy outside of the core SEK holding as a means to supplement revenue that if I am not mistaking KA referred to as checker boardering.
Where would Hemi be today given the current NG pricing if Hemi had committed the cost to a Gas Pipeline?
And what about all those that kept saying the same for SEK and committing the funding to a Gas Pipeline? The same question, where would Hemi be today?
Yes Bdahl you do ask a question that many need to address. How can or how does Hemi survive?
And whether you like it or not IMO the answer is right in front of your nose.
By maintaining and staying the current course that the Hemi Management established in 2006 and continuing down that business strategy road. It will not be a straight line and there will detours along the way but also additional opportunities will continue to present themselves outside of the core SEK objectives for Hemi.
And IMO, given the current state of the O&G market and the fact that Hemi has taken a short term position of being more cautious (financially prudent) in moving forward until this energy market confirms a bottom, is it not fare to assume that additional opportunities may surface for Hemi that might allow Hemi to add-on the it's production flow with less risk than vesting in new drills at this given point in time?
What is so wrong in taking a current short term detour and see if those opportunities might land on Hemi's door step?
Business options bdahl385, keeping the doors open for additional business options that support the primary business plan of Hemi.
As with any emerging company the future is always the key question.
What will 2009 bring for Hemi? Don't know the exact answer, but based on the fact that Hemi has started out in 2009 with a platform that has all the key core business objectives in tack, along with some very nice non-core lease holdings and Hemi enters 2009 as a DEBT FREE company; for me, I do like the direction that Hemi is moving in and the fact that Hemi has held tight and committed to a business plan and strategy since day 1 and has SURVIVED a an economic and energy market blow that nobody saw or predicted.
So keep on hammering away at the numbers. From my perspective given where the current energy, financial and economic markets are today along with the fact the Hemi is an emerging O&G company; I'll take the Hemi 2008 financial overview and defer this discussion to a later date in order to allow Hemi the time to let 2009 unfold.
Kels
AI
