VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 27, 2014) – Hemisphere Energy Corporation (TSX VENTURE:HME) (“Hemisphere” or the “Company”) is pleased to announce its financial and operating results for the three and six months ended June 30, 2014.
Q2 2014 Achievements and Financial Highlights
Subsequent Achievements
Selected financial and operational highlights should be read in conjunction with Hemisphere’s condensed interim Financial Statements and related Management’s Discussion and Analysis for the three and six months ended June 30, 2014. These reports are available on SEDAR at www.sedar.com and on Hemisphere’s website at www.hemisphereenergy.ca. All amounts are expressed in Canadian dollars.
Financial and Operating Summary
| Three Months Ended | Six Months Ended | ||||||||||||
| Financial | June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||
| Petroleum and natural gas revenue | $ | 3,799,461 | $ | 2,375,912 | $ | 7,363,497 | $ | 4,449,530 | |||||
| Petroleum and natural gas netback | 2,011,113 | 1,274,744 | 3,889,115 | 2,390,301 | |||||||||
| Funds flow from operating activities(1) | 1,550,661 | 847,459 | 3,058,768 | 1,639,026 | |||||||||
| Per share, basic and diluted | 0.02 | 0.02 | 0.05 | 0.03 | |||||||||
| Net income | 830,322 | 241,029 | 1,678,231 | 375,454 | |||||||||
| Per share, basic and diluted | 0.01 | 0.00 | 0.03 | 0.01 | |||||||||
| Capital expenditures, including acquisitions | 3,515,191 | 772,651 | 7,882,507 | 2,405,789 | |||||||||
| Net debt(2) | (1,911,603 | ) | (4,643,327 | ) | (1,911,603 | ) | (4,643,327 | ) | |||||
| Bank indebtedness | – | 4,377,500 | – | 4,377,500 | |||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||
| Average daily production | |||||||||||||
| Oil (bbl/d) | 454 | 335 | 471 | 353 | |||||||||
| Natural gas (Mcf/d) | 584 | 412 | 529 | 322 | |||||||||
| NGL (bbl/d) | 2 | 3 | 1 | 4 | |||||||||
| Combined (boe/d) | 553 | 407 | 560 | 410 | |||||||||
| Oil and NGL weighting | 82 | % | 83 | % | 84 | % | 87 | % | |||||
| Average sales prices | |||||||||||||
| Oil ($/bbl) | $ | 85.72 | $ | 72.99 | $ | 81.17 | $ | 65.74 | |||||
| Natural gas ($/Mcf) | 4.64 | 3.55 | 4.54 | 3.50 | |||||||||
| NGL ($/bbl) | 68.24 | 62.55 | 68.24 | 69.21 | |||||||||
| Combined ($/boe) | $ | 75.47 | $ | 64.18 | $ | 72.66 | $ | 59.91 | |||||
| Operating netback ($/boe) | |||||||||||||
| Petroleum and natural gas revenue | $ | 75.47 | $ | 64.18 | $ | 72.66 | $ | 59.91 | |||||
| Royalties | 15.41 | 10.87 | 13.10 | 9.39 | |||||||||
| Operating costs | 16.70 | 15.62 | 17.90 | 15.29 | |||||||||
| Transportation costs | 3.38 | 3.26 | 3.27 | 3.05 | |||||||||
| Operating netback | $ | 39.98 | $ | 34.44 | $ | 38.39 | $ | 32.18 | |||||
| Note: | |
| (1) | Funds flow from operating activities represents net income or loss before depletion, depreciation and accretion, share-based payments, impairment and any deferred tax adjustment |
| (2) | Net debt is calculated as current assets minus current liabilities including bank indebtedness and excluding flow-through share premium |
About Hemisphere Energy Corporation
Hemisphere is a producing 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”.
[expand title=”Advisories & Contact”]Forward-looking Statements
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 | barrel | Mcf | thousand cubic feet |
| bbl/d | barrels per day | Mcf/d | thousand cubic feet per day |
| $/bbl | dollar per barrel | $/Mcf | dollar per thousand cubic feet |
| boe | barrel of oil equivalent | ||
| boe/d | barrel of oil equivalent per day | ||
| $/boe | dollar per barrel of oil equivalent | NGL | natural gas liquids |
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.
Don Simmons, President & Chief Executive Officer
(604) 685-9255
info@hemisphereenergy.ca
www.hemisphereenergy.ca
Scott Koyich, Investor Relations
(403) 619-2200
scott@briscocapital.com
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