Replies to post #9230 on Hemi Energy Group Inc. (fka HMGP)

[duelittle2]

Higher the calculated % return over the same period of time is related to a higher % of Risk!

[xtrapink]

metallurgist--I agree with your assessment.

The Hemi team not only knows how to study the formations and read the maps, but also how to maximize the bang for the buck in their drilling priority. Based on today's NOI, Hemi-1 is expected to be another inexpensive, shallow well (950') with good access (minimal dozer/roadwork expense) and little chance of reducing the flow rates of the other producing wells on Reno lease. Note the relative locations of Hemi-2, Reno/Hemi-9, and Hemi-1 on the plat on page 2 of the NOI.

The formerly proposed Hemi-9 was perhaps too close to Hemi-2 and could have reduced the enhancement effect (if any) that some water injection wells to the north of Reno-9 were having on Hemi-2 and the other reworked wells in the area.

According to the intent Hemi-1 looks to be East-Northeast of Hemi-2 and could produce well without decreasing the production of the other wells near Hemi-2. It also appears to be almost exactly the same distance from the injection wells as Hemi-2. Maybe...just maybe we get the same benefit and results after the crew works it's magic.

It would be nice! Very, very few wells pay for themselves within 45-90 days. So far, Team Hemi is hitting them out of the park.

Effective Date: 29 Apr 07
Expected Spud Date: 2 May 07
(Every true Hemi long eats a baked potato for good luck on that day)

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[gtv]

Looks like the stimulation at Hemi2 means they didn't need the wells as close together as they had first thought.