Hemi Energy Group Has Completed Acquisition of Producing Oil & Gas Properties in Kansas
08 June 2006 - 6:06AM
Business Wire
Hemi Energy Group Inc. (Pink Sheets: HMGP) announced today that it
has closed an acquisition of producing oil and gas properties in
Montgomery County, Kansas. Hemi has also announced that it has
recently filed an information disclosure statement pursuant to rule
152C-11 with Pinksheets.com. The acquisition of this property gives
Hemi 100% working interest ownership (80% Net Revenue Interest) and
will add approximately 20 net barrels of oil equivalent (BOE) to
Hemi's Kansas daily production, bringing Hemi's Kansas producing
well inventory to 64 production wells and seven disposal wells,
located on approximately 1,800 net acres located in southeastern
Kansas. The effective date of the acquisition is June 1, 2006. The
acquisition was a cash purchase. Keith A. Anderson, Hemi's chairman
and CEO, stated, "This acquisition, at a cost of $6.55 per BOE of
proved and unproved reserves, constitutes further evidence of
Hemi's ability to identify and target acquisition opportunities
within our core areas which provide excellent potential for our
enhanced oil recovery synergies. It also demonstrates evidence of
efficient use of our existing infrastructure and personnel, with
meaningful reserve and production accretion. We are specifically
targeting the southeastern Kansas region because the mature fields
in Kansas respond so well to our enhanced oil recovery techniques.
"I hope our shareholders understand how competitive the oil and gas
industry has become and realize we are continuing in our aggressive
process to acquire additional Kansas oil and gas properties located
in this geographical region. Releasing additional or more detailed
information could significantly impact our negotiations and the
potential price of the acquisitions we have targeted. We should
complete our Kansas acquisition program by the end of our third
fiscal quarter and will be better prepared for complete disclosure
at that time." About Hemi Energy Group 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 www.stockinformationsystems.com. Safe Harbor
Provision This press release may contain forward-looking
information within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, and
is subject to the safe harbor created by those sections. Examples
of such disclosures would be statements regarding "probable,"
"possible," or "recoverable" reserves among others. There is no
guarantee that the projects that Hemi has recently acquired will
increase the value of its shares of common stock, or that Hemi will
acquire rights to explore and operate any other such projects, or
that in the event that it acquires rights to explore and operate
other such projects, that these actions will be successful or
increase the value of Hemi's common stock. There are many factors
that could cause our expectations and beliefs about our plans to
acquire additional exploration or production properties, including
our plans to drill or our drilling results to fail to materialize;
competition for new acquisitions; availability of capital;
unfavorable geologic conditions; the complexity of coal bed methane
exploration and production; and prevailing prices for natural gas
and general regional economic conditions. Hemi Group assumes no
obligation to update the information contained in this press
release.
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