Replies to post #46632 on Hemi Energy Group Inc. (fka HMGP)

[kelseyf]

In SEK you can very easily ID a Hemi Energy Jack Pump, clean well maintained and relatively new; elevated up off the ground and level, bright green in appearance with very nice red lettering.

Outside of that they are very much like other oil companies use in this part of the oil industry world.

And the storage tanks? Same with this equipment, clean- well maintained - very nice white in appearance.

And the sites themselves not seeping or leaking oil within the pits or surrounding the tanks

Kels

[Big Mur]

The short answer to your question is "Yes."

Hemi's (and everyone else with similar wells "in the rest of the world") pump jacks work on the same principles as say, the pump jacks on a well in Texas.
But they are scaled to fit the situation.

One of Hemi's wells would typicaly have very shallow pay zones, and the flow rates of the oil through the formations is likely to be much less than a typical Texas well. The pump jacks don't have to move as much oil as far nor as fast, making a smaller pump jack with a smaller motor sufficient for the task.

We all know a mature well in Hemi's neck of the woods in Kansas is 3-5BOE per hour when they're running. At that rate, one of those big Texas pump jacks would never get primed enough to pump oil on each stroke. I am not certain of the exact number, but I believe the stroke of a typical Texas pump jack is measured in feet.
A typical SEK pump jack has a stroke of around 10".
Related equipment like stuffing boxes and any control valves, etc. are also scaled to suit the situation.

It all works the same. The difference is in the scale of size. The scale is determined by what the formations will typically provide... hence the reason for most SEK producers having a large number of wells in an area. It's very rare to see anyone besides perhaps a lone landowner pumping his own well, with just one or two wells in their entire inventory.
In Texas it was/is possible for someone (you will be familiar with this, bdahl) to have a successful, profitable, worthwhile operation with just one or two wells because the pace and quantities allow for the larger scale operation per well.

The other side of this coin is that for what it costs to get one Texas well operating and producing, and the amount of oil that it leads to, the costs for the greater number of smaller wells in SEK to come up with pretty much the same quantity of oil (new wells, not old mature wells) isn't that much different when it's all said and done.... of course there are many variables that make this inexact, but the idea is common and sound.
And there are other items that might cause more sway one way or the other... like the logistics of finding good drill locations. Is finding one or two good sites in Texas as work-intensive as finding 2 dozen good sites in SE Kansas?

The short answer to your question is "Yes."