Replies to post #25042 on Hemi Energy Group Inc. (fka HMGP)

[Badge714]

gtv.... Several share holders have visited the oil patch so I think this question should be answered by them. Maybe Big Mur wil have the answer to your question.

[lowman]

While I'm not sure if we can use 3 barrels a day for an average on all wells, in theory, I would say you are correct.

Hemi has wells that are doing one barrel. Hemi has wells doing five barrels.

The average though? Safely speaking, I would use 2 bbls and be VERY happy when I've found I've been just too conservative.

Hence, an expectation of 40 x 2 x 25 = 2000 bopm x $75 p/bbl x 12 mo. = $1.8M p/yr 'should' not leave anyone disappointed, when considering how conservative this estimate is, and how much overall asset and no debt HMGP has.

Let the de-watering continue and perhaps we will find ourselves pleasantly surprised. They may even begin doing a much better overall production than we ever planned for.

(I was told that we could find some wells doing much better than pre-flood days, for various reasons).