Replies to post #44615 on Hemi Energy Group Inc. (fka HMGP)

[bdahl385]

The cased vertical portion and the radius bend should take no more than 2 days including running the casing and cementing in place. The first rig is done at this point and moves on. Then 5 days to cure the cement would be reasonable.

The horizontal drill rig then moves in to drill the 2000' lateral. I doubt this would take more than 2-3 days. I am not clear if they then run a slotted liner or how they complete / case the lateral portion of the well and the timeframe for that.

[kelseyf]

My understanding and opinion

ALT-2; 7"casing
Vertical drill based on other drills in SEK - 2 days
Cement casing drying - 5 days.
Horizontal drill - 3-5 days

Hemi could perform this horizontal drilling project in two stages; Vertical part, set casing then complete horizontal portion later OR complete entire Silvey Hemi-1 drilling project as a one shot lining up the two contractors.

Concerning when to do this project is the business question? Which dice does Hemi Management roll?

My recommendation is get the horizontal done now, low expense/cost relative to when market is strong and demand is high AND it gets needed production and revenue way up for Hemi relative to Hemi’s current verticals wells if the horizontal well project delivers. These contractors are hungry for work and if needed Hemi can always choke back.

Let along other benefits such as a complete execution and the ability develop more opportunity with this horizontal drilling process and be in position to take advantage of increased production when the oil market strengthens. IMO there is also an equal risk for Hemi sit back and currently remain dormant.

Just my opinion, Hemi Managements decision.

Kels