Replies to post #38620 on Hemi Energy Group Inc. (fka HMGP)

[kelseyf]

Welcome back PK and thanks for the info regarding tanking vs hedging.

One nice feature about Hemi, plenty of topics to discuss such as:

> SEK - Collins (2000-2500 initila psi!!!), Weseloh & Driskill (virgin territory), Reno, Tebbins, Purcell, and the other SEK lease sites.
> Tarrant County, Sabine County Texas
> Bakken Field, North Dakota
> In definitive Review for Bakken Lease.
> Interest parties in the required Tarrant County leases.
> Oil prices still 41% higher that 01/01/2008
> Positive Monthly Cash Flow
> Debt Free
> Tanking SEK oil in storage
> Gas reserves keep on building up with each new well.

Kels

[bdahl385]

Thanks PF - I must have missed that excellent explanation...

Here is an excerpt from one of my earlier Posts about this KGS / tanking / storing / hedging topic:

"I find that statement odd that the KGS only reports on what they are told and that oil that is "sold"....

Production helps investors evaluate the lease much better than sales IMHO....

To me, production is defined by extracting the oil from the ground and placing it into a storage tank. Oil sales is defined by having a transport company pick up the load of oil out of your tank in exchange for payment at the going rate.

The KGS website I referenced says "Sample Monthly Oil Production, (bbls)". Maybe they need to change their wording to "Sample Monthly Oil Sales" since there is a distinct difference. "

Oh well, it's a government run site - what do you expect??? LOL

[jelly]

interesting article in regards to hedging oil....

http://www.chron.com/disp/story.mpl/business/5942519.html



oh yeh, and yes.