Replies to post #38081 on Hemi Energy Group Inc. (fka HMGP)

[Big Mur]

It was the one where they used mud drilling instead of pneumatic(air), and yes, they did go way deeper than usual...

This is the one where they encountered things they hadn't seen before, and while they freely discuss the more obvious payzones, there are features of this well that still come under the "tight hole" status.

I personally do not know what those features are. I tried to climb down the well bore right before the frac'ing crew arrived, but I couldn't get my shoulders through the opening.

[oilslick]

If memory serves me correct DL2 you are right. Not sure about the wider bore but it was much deeper than normal for SE Kansas. Multiple pay zones also.

You better wait for Big Mur to varify that for sure though.
GLTY

[bdahl385]

NOI on Collins listed TD at 1350' in the Mississippi Lime formation. The PR today shows current producing zone is the Squirrel Formation (normally 900-1000' level for this area). Untested zone in PR is uphole at 600'.

It's a good thing they were drilling with mud if the pressure is anything close to that in the PR. 2500psi from a 950' zone would be very, very uncommon.

The gas in the zone is kind of a mixed blessing. It is great for charging up the formation and allow the fluids to flow with great pressure. But without nearby infrastructure (read gas pipeline) it could actually hinder the wells oil production. The condensate can be stripped out and sold but the gas must be flared, vented or reinjected depending on the flow rate and Kansas environmental reg's.

Very promising zone though - congrats to the Hemi team.

Kel's / BigMur - do you remember if any gas pipelines were in close proximity to these leases on your site visits? I remember an early PR from Hemi stating that the nearest gas line was over 4 miles away and so chose to keep gas pay "behind pipe" on one of the older leases... Does that ring a bell?

[zguy]

duelittle, as has been mentioned, this was a much deeper than normal well. I viewed it as Hemi doing a "test" type well without the test well risks. Due to the surrounding leases and blanket formations I think confidence was high that oil would be hit at the more "normal" Kansas depths but for whatever reason (some of the old timer type info that Keith has files full of maybe?) Keith wanted to see what was deeper and was confident enough at the time he was going to find something "special" that tight hole status was declared.

Besides that, what I wanted to bring up was that all Hemi's newly drilled wells are drilled for the long term using the "good stuff" so to speak. From the May 14th press release... "With that in mind, Hemi has been drilling and developing wells, we have been employing the highest levels of the industry standards for drilling and completion techniques which will allow these wells to continue producing decades into the future. You can compare this to a mechanic with a toolbox full of Harbor Freight tools next to a mechanic with the same tools but all of the Snap On brand. If both mechanics wanted to sell their tool chest (with very similar tools) the mechanic with the Snap On stuff will be much more appealing to a buyer than the mechanic with the cheap stuff... even if the Snap On stuff costs considerably more. While the tools initially cost more, they are worth way more down the road because they LAST and don't wear out. For those who might not get this analogy, a Harbor Freight wrench might cost $0.50 where as a Snap On wrench might cost $10. LOL!