VANCOUVER, BRITISH COLUMBIA–(Marketwired – April 9, 2013) – Hemisphere Energy Corporation (TSX VENTURE:HME) is pleased to announce successful production test results of its recently drilled well in Jenner, southeast Alberta.
Hemisphere’s first horizontal well of its 2013 drilling program targeted the Glauconitic formation sandstones. The well was placed on test for an 88 hour period. Over the last 24 hours of the test, the well continued to flow up the casing at a stabilized choked pressure of 3,950 kpag yielding an average of 145 bbl/d oil and 1.5 mmcf/d natural gas for a total of 400 boe/d. Water cut remained at 1-2% through the test and a total of 415 barrels of oil were produced after an initial clean up period.
The well is currently shut-in awaiting tie-in to nearby facilities in order to conserve the gas production. This is the strongest initial production test rate that the company has achieved to-date. The well provides valuable development information of a pool Hemisphere has not previously produced from.
This is the third well Hemisphere has drilled under a farm-in agreement in the area and earns the company an additional 1/4 section of land with numerous low risk development drilling locations. Reserves for this well and any additional infill locations are not represented in the December 31, 2012 independent reserves evaluation. Hemisphere has identified three additional highly prospective adjacent quarter sections that are expected to be drilled and subsequently earned in Hemisphere’s summer drilling program.
Under the terms of the farm-in agreement, Hemisphere pays 100% of the drilling, completion and tie-in costs of this horizontal well to earn 100% of the production before payout, subject to a convertible overriding royalty.
Hemisphere has drilled 11 consecutive successful Glauconitic horizontal wells in its Jenner property where it has access to more than 30 sections of land, two oil processing facilities and a growing inventory of low risk development drilling locations and medium risk exploration prospects.
About Hemisphere Energy Corporation
Hemisphere Energy Corporation is an exploration and production 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 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.
Test rates are not necessarily indicative of long-term performance or of ultimate recovery. Neither a pressure transient analysis nor a well test interpretation has been carried out and the data should be considered to be preliminary until such analysis or interpretation has been done.
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||mmcf/d||million cubic feet of gas per day|
|boe/d||barrel of oil equivalent per day||kpag||kilopascal gauge|
Hemisphere Energy Corporation
President & Chief Executive Officer