VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 13, 2013) – Hemisphere Energy Corporation (TSX VENTURE:HME) is pleased to announce summer drilling operations have commenced in the Jenner area of southeast Alberta.
Hemisphere is targeting the oil-bearing sandstones of the Glauconitic formation with a horizontal development well. This horizontal well represents the fourth well Hemisphere has drilled under the farm-in agreement announced in June 2012. Results will be made available following drilling and testing of the well.
This well is targeting the same pool that Hemisphere first drilled in March 2013. Production from Hemisphere’s existing well was tied into third party infrastructure in July 2013. Over the past two weeks the well has been flowing at an average rate of 212 boe/d, consisting of 120 bbl/d oil and a gas rate of 550 mcf/d.
Under the terms of the agreement, Hemisphere will pay 100% of the drilling, completion and tie-in costs of the horizontal well to earn 100% of the well spacing unit before payout, subject to a convertible overriding royalty. Hemisphere has identified a number of additional earning wells on the farm-in lands and is planning drilling programs to target these locations.
About Hemisphere Energy Corporation
Hemisphere Energy Corporation is an exploration and production, oil and gas company focused on developing core areas that provide low to medium risk drilling opportunities to increase production, reserves and cash flow. Hemisphere’s continued growth plan is through drilling existing prospects and executing strategic acquisitions and farm-ins. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME”.
This news release contains “forward-looking statements” that are based on Hemisphere’s current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding Hemisphere’s outlook for our future operations, plans and timing for the commencement or advancement of exploration and development activities on our properties, and other expectations, intention and plans that are not historical fact. The words “estimates”, “projects”, “expects”, “intends”, “believes”, “plans”, or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of Hemisphere. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by Hemisphere will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Hemisphere disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
A barrel of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Definitions and abbreviations
|bbl/d||barrels of oil per day|
|boe/d||barrel of oil equivalent per day|
|mcf/d||thousand cubic feet of gas per day|
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
President & Chief Executive Officer