Hemi Energy Group Has Completed Acquisition of Producing Oil & Gas Properties in Kansasadmin
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.
Stock Information Systems Inc.
Jim McBeth, 801-568-1873
Source: Hemi Energy Group Inc.