Replies to post #39039 on Hemi Energy Group Inc. (fka HMGP)

[Big Mur]

"What is not reasonable is to think that a multi billion dollar NYSE listed O/G company of the likes mentioned above would want to buy out Hemi for their ND,TX,KS leases... That is just plain so far fetched that it is surprising it even comes up as a scenario at all."

If you say so.

I guess the part was missed where I mentioned/posted that discussions have already taken place between Hemi and some of those companies mentioned. Interest has already been shown from several directions, for quite a while actually.

Perhaps you were unaware, but many of these bigger companies we're talking about (nobody ever said a top tier company would be expected to buy out Hemi... but that doesn't mean a 2nd tier company would not) already operate in many of areas where Hemi has leases... that they already have current, long-standing operations there. Why is it so hard to fathom or understand that it's not much of an extension to think a company who already has operations in an area, would want to expand in that area? All of those larger companies must constantly be on the lookout for additional sources of product or they have nothing left to sell after a time.

ND is already spoken for... so leave it out.

If this plan is so "far fetched" as your post says, then why even entertain the thought of HMGP stock at all? Why would someone bother posting criticisms? According to your post, it's blatantly far-fetched. I don't normally need that much incentive to move on from a stock that I find to be "far-fetched".
But so far I find the claims in your post to be incredible. There are MANY people who participate on this board who have a 2-3 year head-start on you in learning all about Hemi, and learining as much about the environment in which Hemi operates... who all the players are in the dance, so to speak.

To me "real world" would include seeking out complete information before making sharp criticisms. Maybe that's just me.
It's kind of like standing around complaining "My new car is a pile of junk! They made the gas door impossible to find!" without having bothered to find out first that it's an electric car, IMO.




DON'T BLINK!!!!

[REAZO]

In reading some of the posts today, good comments, and good review of some old topics. I wanted to throw in 2 cents on a few topics.

1) In regards to any buyout, I believe it would mainly be for the SEK business, with the other holdings just being the icing on the cake. If/when the updated reserve report is released, I am expecting to see some impressive numbers taking into account the new "Hemi Field" on these 10,000 acres.

2) I think Hemi is doing some things very well, especially with the pending ND deal. I can't wait for us to get some more info on it. This 640(?) acres seems to be somewhat peripheral to the core business strategy, so entering into some form of deal to gain revenue here is great, and will only aid in building the core business. More revenue = more wells = more growth.

3) Following point 2 above, and combining that with increased production (assumption at this point on the Collins and new wells in the area) we will have a solid emerging O&G company with dramatic growth in holdings and revenue. This is key for what I call "plan B" which would be no buyout, but rather make Hemi a successful small O&G company.

4) Tarrant Co leases. This has been addressed again lately, and the checkerboarding strategy seems to be working. These strategic leases ensure face time between Hemi and the big boys. Location is more important than size. At the least, Hemi will get royalties, etc. More likely, this will aid in a buyout scenario. Funny sidenote: Look at a map of the stockyard area and locate Hemi's office, XTO's Barnett Shale office, and Chesepeake. I don't believe XTO or Chesepeake can drill under their own location without asking Hemi first. lol.
bdahl - My understanding is that you don't actually need 100% of the land leased (but could be incorrect), but that there are restrictions to the drilling that Hemi is aware of and has acquired their leases accordingly.

I would absolutely like to see more done short term for the pps and hope that management have plans in the works. Please, Keith, please. However, looking at where Hemi is in their game plan and what is developing in SEK, things are looking very good mid-long term for the .05 stock.