Replies to post #34368 on Hemi Energy Group Inc. (fka HMGP)

[Big Mur]

If I were a betting man, I would be betting that eventually the interests of more than one of those big oil companies in Forth Worth are going to overlap right on top of one of Hemi's leases there.

And there's more on the line for them than just geting the rights so they can produce. They're right there in urban Fort Worth where the public gets a front row seat to everything. These companies all need to have a fantastic public image if they are to get what they need from the local residents. So it is important to them for several reasons to get their hands on the more visible sites as well.

As has been suggested before... it's not hard to imagine a sort of "bidding war" and someone eventually saying "I'm just going to buy all of Hemi and get the lease that way!" and then it's on!

I hope Keith has a striped referee jersey and a loud whistle.

[texas4286]

That's the hope of many of us who been with this stock through thick and thin. However, I think it is too early in the game for a buyout. Next year, perhaps.

[1581]

I think the timing of the revised reserve report and the activity in DFW is not arbitrary. The only time a current reserve report is really needed is to be able to quantify assets.
With Keith planning to ultimately sell, what would be the sense of revising reserve reports annually or biannually.
The time and cost of them are only worthwhile expenses when there are suitors around.

The great thing about Hemi being debt free and cash flow positive is that Keith does not have to jump at the first offer, he can take as much time as he likes until someone hits the minimum number that he has in his head.
I hope he is as greedy as he is smart.

[kelseyf]

Peter Griffin,

It is certainly a possibility. The Fort Worth Star-Telegram report the following on Sunday 04/26/08

Jim Fuquay - Star Telegram
April 26, 2008

SE Arlington group backs record lease with XTO Energy

A big southeast Arlington neighborhood group said Friday it has endorsed a lease with XTO Energy that will pay the area’s highest signing bonus yet reported, $26,517 an acre, along with a generous royalty of 26.5 percent.

This homeowners group (SEACTX) has a total of 6,000 acres @ $26,517 per acre that is $159,102,000 + 26.5% royalties to be paid by XTO!!!!

Just to allow XTO to control the land for current drilling activities by XTO within Tarrant County only.

Now take that value equate that to HMGP and on 100M A/S you get 1.59/share minimum. Take that value to the HMGP 65M O/S you get 2.44/share minimum.

Now you tell me is the total value of HMGP when one includes all of HMGP leases in SEK, TX (including Tarrant County), ND (Bakken field) and NM with all the proven reserves + the current operation of HMGP have a value greater than the 159M that was just agreed to by XTO for 6,000 acres of controlling leases???

IMO.......I think so.

Kels

[REAZO]

You could be right, but I believe it is too soon for the optimal buyout. Big Mur touched on this a few weeks ago, and I agree, but now we are in the "proving up reserves" phase and building company value. That will give the company and shareholders the most for our dollar.

In the meantime, we should get the shareprice over $1 to fair market value. I could be wrong, but I think the buyout will be more in the 2009 range. I know we all want the buyout now for quick $$$, but even getting to FMV will provide tremendous returns from these ridiculously low levels.

The reserve report could indeed be to show potential buyers value, but could also be to get the pps up to where it should be, until a buyout offer is accepted.

Not pumping, just my opinion based on my DD, DD of others on the board, and my communications with the company.