About those new (and upcoming)leases…
It is understandable that it is not in Hemi’s (nor our) best interests to be perfectly forthcoming about specific leasing arrangements nor production numbers while negotiations for additional leases are in progress. I suspect that Hemi is getting very good bang for the buck as they negotiate these leases since the properties do not have a recent production record.
In my mind it is evident that the book of Hemi was directly in play in selecting these particular leases as the 5 wells mentioned in the press release, and the reference to “historical notes, i.e. driller's notes, well logs, core samples, etc.” Some of these notes, logs and core samples may be in the public domain, some are not. Even if they are, you have to know specifically where to look, and what to look for (there’s a lot of little dots on that map that DMB has posted).
Additionally, the local old timer’s always have tales to tell, and they often remember wells that had been long forgotten by many. They love to reminisce and share the knowledge almost lost to history…but only if you know the right questions to ask, and the right way to ask them. Over BBQ sounded about right to me--introductions, chat, remembering...Confirmation of the evidence in the Book of Hemi is a wonderful thing! Hemi management, with snippets from the Book of Hemi, knew the right questions to ask—and the answers lead straight to “black gold.”
So what does this do for Hemi shareholders? Provenance for our leases. We get lease acreage that indeed has historical referenced production (though long lost) for the market price of leases that are untested and unproven but located near producing formations.
It's a lot like recognizing an original Picasso painting at a garage sale, and buying it for the price of the frame. All you have to do is establish that it is indeed a Picasso...and the value changes immediately and dramatically.
By having the information from the "Book of Hemi", and confirmation by driller's notes, well logs, core samples and first hand accounts, our management was able to find these masterpieces and buy them at garage sale prices. As they are developed their true value will become evident to everyone...and everybody--management, landowners and shareholders will profit tremendously.
Just my thoughts,
xtrapink
xtrapink
(long, strong and very pink)
