Hemi Energy Group Closes on Acquisition of Additional 45 Oil Wells
September 21 2006 - 1:52PM
Business Wire
Hemi Energy Group Inc. (Pink Sheets: HMGP) recently consummated the
purchase of an additional 45 oil wells and 2 injection wells on the
Orth-Reno, Orth-Silvey and Bennett Leases. The leases were acquired
on cash terms from Inlan Oceans LLC of Galena, Kansas. The
acquisition gives Hemi 100% working interest (net revenue interest
of 80%) on all lease acreage and wells. The acquired lease acreage
and wells are located in Woodson County, Kansas, comprised in
excess of 1000 acres located adjacent to Hemi's current Purcell,
Tebbens and Zimmerman leases. This acquisition gives the company
103 existing production and injection wells covering over three
square miles of contiguous Enhanced Oil Recovery (EOR) operations.
Production is from the Humboldt Chanute oil field comprised of
Mississippian era (squirrel) sand stone formations located at
intervals at less than 1000 feet of total depth. Since the
acquisition, company and contract field crews have been repairing
and reinstalling lease infrastructure, test pumping, rehabilitating
wells and establishing a baseline production for the leases and
each individual well. The company expects to have the leases online
and in full production within the next 30 working days depending on
variables such as weather and equipment availability. Keith A.
Anderson, President of Hemi, said of this acquisition, "As far as
our leasing program is concerned, these leases are key to making it
possible for us to optimize the Kansas EOR operations. We continue
negotiating with additional mineral owners and companies for both
additional production and lease acreage in order to expand the
current EOR project. Pending the outcome of these negotiations, we
expect to acquire lease acreage to potentially give us 8 to 15
square miles of contiguous EOR operations in the Humboldt Chanute
field." Additionally, preliminary geological studies conducted and
identified by Tectonic Energy Consultants have identified the same
geological markers and trends identified outside the known
boundaries of the 150,000-acre Humboldt-Chanute field. Following
the Tectonic recommendations, we have begun leasing undeveloped or
unexplored acreage following this newly identified trend. This
additional leasing program is intended to be developmental drilling
program, scheduled to commence next spring. About Hemi Hemi Energy
Group is an independent crude oil and natural gas producer
employing a unique business model capitalizing on technological
advances to exploit mature fields with millions of barrels of
proven oil remaining in the ground. Using attractive lease/royalty
packages, Hemi has secured tens of thousands of acres of
productive, domestic projects. The company's forward-thinking
strategy has placed it in an enviable position at a time when
prices and global demand for oil continue to rise. Building on
decades of experience in enhanced oil recovery, Hemi has
successfully amassed a substantial and attractive portfolio of
these high-quality domestic properties. By streamlining operations
through cutting-edge technologies, Hemi has the ability to operate
more effectively and efficiently than larger oil companies. For
additional information, please go to www.hemienergy.com or
http://www.stockinformationsystems.com/c/HMGP/index.html "Safe
Harbor" Statement under the Private Securities Litigation Reform
Act of 1995 Statements in this press release relating to plans,
strategies, economic performance and trends, projections of results
of specific activities or investments, and other statements that
are not descriptions of historical facts may be forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
information is inherently subject to risks and uncertainties, and
actual results could differ materially from those currently
anticipated due to a number of factors, which include, but are not
limited to, risk factors inherent in doing business.
Forward-looking statements may be identified by terms such as
"may," "will," "should," "could," "expects," "plans," "intends,"
"anticipates," "believes," "estimates," "predicts," "forecasts,"
"potential," or "continue," or similar terms or the negative of
these terms. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
The company has no obligation to update these forward-looking
statements.
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