VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 18, 2013) – Hemisphere Energy Corporation (TSX VENTURE:HME) (“Hemisphere”) is pleased to announce that it has closed the previously announced $3.35 million acquisition of oil and gas assets in the Atlee Buffalo area of southeast Alberta from an intermediate Canadian producer effective June 1, 2013 (the “Atlee Buffalo Acquisition”).
The Atlee Buffalo Acquisition provides Hemisphere with an opportunity to apply its technical experience and successful track record in drilling horizontal wells and implementing pressure maintenance programs to achieve higher recovery factors from existing oil pools.
Highlights of the Atlee Buffalo Acquisition:
- 100% working interest in 8.25 contiguous sections covering two significant Glauconitic oil pools
- Located 25 kilometers east of Hemisphere’s core Jenner oil producing property
- Estimated original oil in place of up to 49 million barrels based on Hemisphere’s internal mapping of the acquired lands with a current recovery factor of only 4%(1)
- Stable, operated production of approximately 60 boe/d (75% oil)(2)
- Proved plus probable reserves of 224 Mboe (3)
- Net present value for proved plus probable reserves of $5.1 million, before tax and discounted at 10%(3)
- Up to 75 horizontal drilling locations identified to develop the resource
- Significant upside for future reserve additions through the implementation of water and/or polymer flood
- Based on Hemisphere’s internal estimates.
- Based on Q3 2013 average sales volumes.
- GLJ Petroleum Consultants Ltd. reserve report effective December 31, 2012.
With the completion of the Atlee Buffalo Acquisition, Hemisphere has achieved a record production rate of approximately 675 boe/d (75% oil). Hemisphere anticipates completion of upgrades at its main oil battery to increase water handling capacity by late November. This operation will allow optimization of fluid rates at a number of existing wells for an increase in base oil production and provide capacity for new wells in the future.
About Hemisphere Energy Corporation
Hemisphere is an oil and gas 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 as a Tier 1 issuer under the symbol “HME”.
Please visit Hemisphere’s website at www.hemisphereenergy.ca for our updated corporate presentation.
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
|boe/d||barrel of oil equivalent per day|
|Mboe||thousand barrels of oil equivalent|
|Mcf||thousand cubic feet|
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
Hemisphere Energy Corporation