TSX-V: HME – VANCOUVER, Sept. 21, 2017 /CNW/ – Hemisphere Energy Corporation (TSX-V: HME) (“Hemisphere” or the “Company”) is pleased to announce that it has initiated its fall development program and has granted incentive stock options.
Hemisphere has commenced its previously announced drilling program consisting of seven wells in the Atlee Buffalo area of southeast Alberta (news release dated September 15, 2017). Of these seven horizontal development wells, drilling plans include three producing wells into the Upper Mannville F pool, three producing wells into the Upper Mannville G pool, and one injector well into the Upper Mannville G pool. Results will be announced as they become available.
As part of the development program the Company plans to expand its facility at the F pool and construct a new water separation and re-injection facility in the G pool. The expansion of the F pool facility will offer Hemisphere the ability to optimize current producing wells and provide additional capacity for continued drilling. The new G pool facility will allow the Company to handle production from new wells and to tie-in and turn up its first G pool well producer, which was drilled in the summer of 2016 and has been producing at a limited capacity to tanks.
Overall production from Atlee Buffalo has continued to improve through 2017 and additional information collected from this drilling program will help to expand and improve the Company’s reservoir model, which will be used to define an aggressive 2018 drilling program.
“This level of capital expenditure and number of drilling locations represents the largest development program Hemisphere has completed since 2014,” said Don Simmons, President and Chief Executive Officer. “It characterizes a major shift from a period of capital conservation to substantial growth for the Company.”
Stock Option Grant
The Company has granted incentive stock options to officers, directors, employees, and consultants of the Company, and a company performing investor relations services entitling them to purchase up to a total of 5,034,000 common shares at an exercise price of $0.25 each, pursuant to the Company’s Stock Option Plan. The stock options are exercisable for a term of five years with one-third vesting on the grant date, one-third vesting on the first anniversary of the grant date, and one-third vesting on the second anniversary of the grant date.
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 focusing on existing assets with significant growth potential and executing strategic acquisitions. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME”.