Replies to post #38882 on Hemi Energy Group Inc. (fka HMGP)

[bdahl385]

You are correct, a 10 - 20 boepd well producing from a 900' zone is actually a helluva well if it sustains itself at that level. Now if the mix were more on the oil side and not NG, it would be immensely more profitable for the company given the lack of a local gas market at present.

Offset well(s) to be drilled will probably try and hit the zone a little lower to get more into the oil than the gas cap. Hitting a well high is not always the best thing if you cannot market the gas. Probably what Craig and Keith are deciding to find the sweet spot to drill the next offset well. Since they had the money set aside to drill Driskoll but it didn't happen, just need a NOI and a rig.

[REAZO]

Nice post PE, and I believe you are being conservative. Although I don't know what average production in this trend will be, I would expect another 10 wells this season...based on my conversations with them.

I also know that they are looking into alternatives to selling the gas. I had originally thought it would all get capped and wait for the sellout, allowing a larger company to deal with the infrastructure. But new opportunities may have presented themselves, and I believe they are looking into these. Email me if you want.