LONG CEO email, regarding many issues
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Thank you for the email, I really didn’t want to release that reserve PR. We don’t have the final report in hand the geologist is running late, he has other projects, I knew the shareholders were looking for something and it was to the point credibility was at stake… so we released what we had. Yes it is accurate and truthful its is simply the bottom line with many questions yet to be answered.
I have to get on my soap box about a couple of things and I will probably be long winded and contentious, I hope you and the shareholders don’t take this the wrong way but it has to be said.
Publicly disclosing detailed information of a report such as we are waiting on is well beyond the norm. I do not under any circumstance want to break the industry norm, we cannot loose credibility with them any more than we can with the landowners or shareholders. We will disclose more in the future, only what is relevant to the investors or if we see something we disagree with or needs amending or if something that needs correction we will put another PR out. Find me a company that releases an indepth detailed reserve studies/report to the public via a PR and I will show you a pump and dump company,
Extremely detailed information will cause lease rates to very easily go up,(thus we spend more SHAREHOLDERS EQUITY to lease) we are giving the industry guys free information (that SHAREHOLDERS PAID FOR) and that price eruption of the first hour of trading should be a clue as how easy volitility could become the norm.
You know how people invest in our stock at whatever price and just see the price inch up a little at a time each week? This is stability, this is security, this is why people are comfortable… just as an investor should be when they invest their money.
If we start having crazy volitility current investors are going to get scared and future investors are going to feel more like they are gambling instead of investing and I prefer to have no part of it. I am sure every dollar that has been invested in us has been earned by whoever has invested in our stock and I try to treat that respectfully and responsibly, the same with Craig. There are enough risks just being on the pink sheets and especially in oil wells to more than keep the gambler in all of us happy. But Hemi is not going to be treated like a bingo number or a spot on the roulette wheel… if you get my meaning.
Another thing a market maker didn’t see the PR and their VP was on the phone with me not more than 5 minutes after the PR in a panic wanting to know what was going on. (they didn’t see the PR until I pointed it out)
Actually this call turned out to be a good thing, she had a real eye opening conversation, its kinda like when a rattle snake thinks it is the meanest thing in its universe until it gets wacked with a big stick! ( I don’t mean I wacked the lady! Because she was very smart, professional and nice… I mean her industry is the rattlesnake.)
The market maker got wacked with a stick and after I think the lady VP realized we are on the Pink Sheets because we want to be, that we arent selling stock (yes an offer to buy our stock was made and rejected by us.. let them go buy it the same way our investors do) and we are actually a real oil company doing real oil company stuff and making a profit. I think… I hope she went away with an whole new outlook regarding Hemi… if not, at least she knows we have a stick and arent afraid to use it and we are best to be avoided if they are going to play with our investors.
Now back to this reserve report… when we get it, we arent going to disclose a lot of information to the public good or bad, for the most part investors don’t know what they are reading in the first place, whatever information we choose to withhold or we feel is not proper to disclose to the public… then that is what we will do. If someone takes this a sign of a “scam” then they are free to sale… (I hope at a profit) but this report is more for our internal use and for any potential buy out due dilly.
We will keep a copy in the office and any investor or company considering buying us out can come read it… BUT they will sign a NON COMPETE AND NON DISCLOSURE AGREEMENT before we let them have access to it. Yes this includes posting any findings on the internet too.
Secondly, I don’t mind if your relative keeps an eye on what we are doing, that is fine. But you need to understand, the things you post or disclose to others, has unintended consequences. What if you post something “she thought she saw” and you post it… and it caused a massive sell off or an unfounded rumor and people buy the stock at a price more than they want to pay? If you want that responsibility? Then keep in mind this isn’t a game for arm chair CEO’s or sports commentary to do a play by play, it’s a free country, but you will have to accept sole responsibility for what you post. I am not going to “sanction or condone it or even help you understand” if your posts are in error and cost someone money… its on you not Hemi. Sorry to be hardnosed about that… but the words, insider information, SEC, Oxley Sarbanes is not on my to do list and you will be on your own and responsible for what you post.
Like this email, post it if you want or not… but don’t alter a word, the typos, bad grammar and mispellings is on me, but at least they are real, I don’t mind being responsible for what I type but will not be responsible for “ corrective or dramatic edits”
Keith A.
