Replies to post #44702 on Hemi Energy Group Inc. (fka HMGP)

[Big Mur]

When that was brought up, (I'm thinking of zguy's posts) I think that was the context... that while it wasn't new money (or additional) that it was still "like" found money when it came to the company being able to continue funding operations and remaining debt-free.

I believe the context had more to do with attitude than with balance sheet, because for the most part the WY leases were the least discussed and least acknowledged asset Hemi held. Most shareholders knew next-to-nothing about it, and so in their minds it was seldom thought of when generally considering assets.
Also, it was considered how much Hemi originally obtained the leases for vs. how much they received in payment for them. There was a substantial difference between those two numbers.

I don't remember seeing a post about assigning a SP equivalent value to the transaction. I couldn't go along with that for the same reasons you cited. Hemi held the leases too long for the FMV to never have been considered on the balance sheet.

I totally support your factual statement about it being a move in the ledger (cash rec'd vs. current FMV at the time of sale).

[kelseyf]

Sorry for the late reply but an inside metaphoric reply had my attention this afternoon.

I understand what you stated and agree that since there are no current financials for all Hemi shareholders to view that this can lead to some speculation as to what this asset (WY lease) was on the books.

But my point is that we do know what the "asset received" was for the WY lease (475K) and we do know that this "asset received" is more than enough to fund the current approved Silvey Hemi -1 horizontal application and now filed NOI with the KCC.

And I would speculate that if this Silvey Hemi-1 horizontal drilling project is successful in delivering the increase oil production then IMO Hemi has increased this "asset received", has increased its revenue flow and brings additional asset increase potential valuation to the Hemi books when additional SEK horizontal drilling projects are considered as stated by Hemi Energy.

If this horizontal project delivers, then it is a win-win-win; short term, mid term and long term for Hemi and the Hemi Shareholders

In my book this is a business move and strategy by Hemi to take a non-core / non revenue producing asset (WY lease)and utilize these fund to increase the core assets of Hemi (SEK leases) and increase the revenue ability of these producing assets.

Kels

[REAZO]

Well, could be an increase. We don't know (at least I don't know) how long they've had the WY leases, nor at what cost they acquired them. However, very likely a true 'profit' could have been made, with an overall increase to the balance sheet.