Hemi Energy Group Inc. (fka HMGP)

[bdahl385]

Onco - a very astute question. Hemi has not released an updated public reserves report. I believe the old reserve figures are wildly optimistic (2.1 Million BOE of oil on roughly half the Hemi SEK holdings) based on actual extraction levels from these leases... Without seeing the entire report, it is hard to draw a conclusion as to the context of these reserves. The term EOR is mentioned in the reserve report, maybe these figures refer to the reserves if an actual polymer, natural gas or CO2 injection program was initiated. These would be very costly.

It was referred to in the June 2007 financials but was never released publicly in its full form that I am aware of...

http://www.hemienergy.com/hmgp_semi_annual_report.pdf (page 1)

"In the summer
of 2006 we commissioned Tectonics Engineering of Calgary Canada to do a geological study, enhanced
oil recover (EOR) and oil and gas reserve study of these leases. In September we were notified Tectonics
was unable to complete this report, we commissioned Geosystems Engineering, Inc., of Dallas, Texas to
complete this report. The Geosystems report concluded 2.15 million proved BOE (Barrels or Equivalents)
and probable reserve of 3.1 million BOE (revised down from 5,100,000 BOE as quoted in the Techtonic
report) for Hemi's five leases in Woodson County, Kansas. The total potential reserves are 5.25 million
BOE (Oil and or Natural Gas) for this report. "