Replies to post #43854 on Hemi Energy Group Inc. (fka HMGP)

[Badge714]

The break even point for producing oil on Hemi’s leases is $32/bbl without the new fracting techniques. With the new fracting techniques he expects it to be $23/bbl. Anything above $23/bbl is profit, so if oil is $63/bbl, that’s a $40/bbl profit. This includes 37 different taxes, royalties, production/drilling costs, transporting costs, and discounted oil rates. In Keith’s last MN1 interview, he said they might produce around 3000 bbls a month in the summer. I asked him about that and he said it was a low ball number that he came up with. He hopes to produce a couple times more than that by the end of summer, but that it’s always best to give low numbers and to always exceed expectations. Weather is the big factor.

http://investorshub.advfn.com/boards/read_msg.aspx?Message_id=19201419&txt2find=cost

[bdahl385]

Kels, my source for the 80% net lease is from Hemi's own PR's, where is your source of 81% net from?

Yes, they have 100% working interest in these wells which means they get 100% after the royalties are paid minus any customary taxes and fees of course.


http://www.reuters.com/article/pressRelease/idUS144825+22-Jul-2008+BW20080722

"We have 100% working interest and 80% net revenue interest in the Collins lease that is not mature and has had no oil production."


http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20061219005152&newsLang=en

"Hemi Energy Group, Inc. (Pink Sheets HMGP) purchased an investment group's interest in the lease, with 2 year restricted stock and cash, and now owns 100% working interest (net revenue interest of 80%) of this lease."

[Sputnik]

kels?

Posted by: Sputnik Date: Tuesday, March 03, 2009 10:54:05 AM
In reply to: kelseyf who wrote msg# 44677 Post # of 48600 [Send a link via email] [Share on Facebook] [Tweet this post]
So much for "cash flow positive"! From Keith's latest communication.

Total Oil Sales 169,794.28
Oil Field Operating, Maintenance & Repair Costs 483,406.33

It appears that what Keith has just released contradicts his earlier PR and confirmation discussion with you Jan. 23. 2009 during your visit.


Posted by: kelseyf Date: Sunday, February 15, 2009 2:35:56 PM
In reply to: Sputnik who wrote msg# 44674 Post # of 45209

Until Hemi Energy states something differently within an official release or you can provide, such as this talk of a HMGP definitive report that would provide validated / supported / documented information vs just an opinion on this topic............

YUP this is my exact opinion.

And to support my exact opinion as I stated these 2008 Hemi PR's points regarding Hemi's Debt Free Status and Monthly Positive Cash Flow were very specific topics during my 01/23/09 meeting with KAA..

What more can I say. It is what is and is stated as Hemi has released in the 2008 Hemi PR's

You can take it for however you want.

But we are still waiting for that Hemi Definitive Report based on these confidential sources should it ever be created and released.

Any progress?