VANCOUVER, June 8, 2016 /CNW/ – Hemisphere Energy Corporation (“Hemisphere” or the “Company”) (TSX-V: HME) is pleased to announce a non-brokered private placement offering (the “Offering”) of up to 3,100,000 common shares of Hemisphere (“Flow-Through Shares”) at a price of $0.21 per Flow-Through Share to be issued on a Canadian Development Expense flow-through basis pursuant to the provisions of the Income Tax Act (Canada) and up to 5,000,000 common shares of Hemisphere (“Common Shares”) at a price of $0.19 per share for gross proceeds to the Company of up to $1,601,000.
Hemisphere intends to use the proceeds from the Flow-Through Shares to drill a development well in its Atlee Buffalo Upper Mannville G oil pool as well as other recompletion or development drilling projects. Hemisphere has a 100% working interest in the Upper Mannville G pool, which is currently being re-energized through waterflood but has no producing wells at this time. Hemisphere plans to use the proceeds from the Common Shares to finance the addition of water handling and injection equipment to its existing battery in the Atlee Buffalo Upper Mannville F oil pool where the Company has successfully implemented three waterflood pilot projects, as well as for other general corporate purposes.
Closing of the Offering is expected to occur on or about June 28, 2016 and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued under the Offering will be subject to a statutory four-month and one day hold period. While the Offering is being conducted on a non-brokered basis, the Company may pay cash finder’s fees in accordance with the rules and policies of the TSX-V of up to 6% of the proceeds sold by such finders.
About Hemisphere Energy Corporation
Hemisphere Energy Corporation is a producing oil and gas company focused on developing conventional oil assets with low risk drilling opportunities. Hemisphere plans continual growth in production, reserves, and cash flow by drilling existing lands and executing strategic acquisitions. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME”.