Redwards--and others interested in Hemi Wells
With a little digging [pun accidental, always], I have been able to uncover the identity at least 40 wells by name that are listed as producing wells and appear to be on leases currently owned by Hemi. It appears that these wells are serviced by nearby tank batteries (some with shiny new ladders on them) on the leases owned by Hemi Energy. These named wells had been listed as active producers of oil before Hemi began reworking and revitalizing (using advanced EOR techniques) many older, abandoned, non-economically productive wells. There are many abandoned, unnamed wells that have dropped from the charts of active producing wells.
Information source: The Kansas Geological Survey a specialized section of The University of Kansas library system. (Hint: Follow Magellan and immerse yourself in the abyss)
Many of the abandoned, unnamed wells may have been targeted by Hemi Energy for rework and EOR revitalization to provide additional low-cost crude production.
The named wells are on the original leases in Woodson County and Montgomery County. NOTE: Many of the wells retained their original Operator/Lease name...so there was a bit of detective work and matching of gps coordinates to map positions to confirm that they are on Hemi's current leased land. I probably missed some too for the same reason.
IMO, other named, producing wells will join the Hemi fold with the newly signed leases and the leases currently in negotiation.
NOTE: The KCC normal administrative delay of production numbers for any oilfield/lease/well varies from about 6 months minimum to 12-13 months normal, to "OOPS, sorry we missed that one", so in many cases the wells are still listed under their previous Operator.
Additionally, at the request of the Operator and the concurrence of the KCC, information concerning the production from wells using new techniques, or producing from previously unproven formations can be declared "tight hole" and production numbers not released under penalty of law for 6 months, with additional 6 month extensions that may be granted by the KCC.
The recently completed Hemi-2 well met the criteria and was approved for "tight hole" status by the KCC. The production numbers may not be released by the KCC, the wire line company, the crude buyer, or any other employee of Hemi Energy or those other entities that may be privy to the numbers in the performance of their normal duties.
To all who doubt, there is plenty of information available from the Kansas Geological Survey, if you are willing to patiently dig...and wade through many dead ends.
For those who find my opinion worthwhile, I believe that the underpinnings for a profitable baseline of production have been in place for several months--matching or exceeding the 1500 BBL per month previously PR'd. Providing cash to procure new leases, pay drillers, dozers, rock-layers, cementers and salaries without dilution.
With the weather now in our favor and the rework vehicle and crew on the job the profitability appears to be currently increasing. The observed activity at the Montgomery County lease should provide additional production when it is brought on line within the next week or two.
Additional drilling to either increase production, and/or prove up some of the new formations should begin shortly on Woodson County or Montgomery County leases (let's just keep that McPherson drill on our land and poke some holes, Mr. Anderson!) Oh yeah...that's my opinion too--as CEO, KAA may have an even better plan. I wouldn't doubt it.
Good luck to all longs--it's going to be a fun summer and fall, I think.
xtrapink
xtrapink
(long, strong and very pink)
