Hemi Energy Group Increases Amount of Kansas Oil Wells Producing
Thursday November 1, 9:59 am ET

FORT WORTH, Texas--(BUSINESS WIRE)--Hemi Energy Group, Inc. (Pink sheets: HMGP - News): The Tebbens-Hemi2 new oil well re-completion process is being done in order to stimulate and maximize the wells oil production. We will have the results in the next one to two weeks. The use of the newly permitted water injection well was needed first in order to dispose of the amount of water that would be generated by the completion process on this well. Therefore, the necessary steps needed to complete the new oil well could not be done at the time it was drilled on the lease in Woodson County, Kansas.

Hemi continues the process of de-watering the leases each day with approximately 45-50 wells on the leases in Woodson County, Kansas. Water from all these mature oil wells is being pumped into the water injection well. This salt water injection well is allowing us to begin to produce the maximum potential from these re-worked mature oil wells without having to restrict oil flow because of a water disposal problem. De-watering the leases is allowing the oil to migrate more efficiently to the wells. We now have added 10 more reworked oil wells that are also de-watering and producing oil than we reported in the October 18th press release.

Managements opinion is natural gas from a deeper geological pay zones is the cause for re-pressurization on two of Hemi's leases in Woodson County, Kansas that have a total of 6-10 shut-in gas wells, that we continue to evaluate and explore possible revenue sources for this gas. Management believes, based on experience, that this deeper gas pay zones will add important valuation to the independent reserve report once the deeper zone is drilled and proved up. The total value of the reserves alone in the independent reserve report on the five leases that have proven reserves in Woodson County have a value substantially above market cap valuation. Hemi also has leases in four other states and additional leases in Kansas that add several times the lease acreage that is not included in the independent reserve report.

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Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.