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bdahl385

10/29/08 3:11 PM

#41121 RE: zguy #41119

IMO, the company can no longer stay "monthly cash flow positive" just from oil sales because prices are now around 50 bucks a barrel for their grade of KS crude they are producing. This is down from ~120 bucks a barrel in July. Along with the lower sales price, I wouldn't be surprised to see the overall quantity of crude being produced to be in natural decline as well. I don't think that the Collins well by itself will supplant the lower oil produced on all the other leases.

Now if they were actually doing some kind of EOR like their website touts (and one of the main reasons why I initially invested into Hemi) instead of "dewatering" the leases - maybe the older mature wells would be increasing and not decreasing.