TSX-V: HME – VANCOUVER, June 20, 2018 /CNW/ – Hemisphere Energy Corporation (TSX-V: HME) (“Hemisphere” or the “Company”) is pleased to provide an update on its drilling and field operations.
The Company has continued to see operational and waterflood success through the first two quarters of 2018 with stable field production rates for the month of June to date estimated at 1,090 boe/d (97% oil). This represents an 80% increase over Hemisphere’s 2017 annual production rate. With a solid oil-weighted production base and available financial resources, the Company has recently begun its largest drilling program in corporate history.
Hemisphere is planning to drill up to 11 wells in Atlee Buffalo over the next three months, as well as expand both the Upper Mannville G and F pool batteries to provide additional capacity for continued oil production growth. Remaining capital expenditures for 2018 are forecast to be $13.5 million, with projected 2018 exit production rates of over 1,800 boe/d (97% oil). Hemisphere will continue to monitor commodity prices closely through this program in order to maintain financial flexibility with market changes.
“For Hemisphere, the question isn’t how much oil there is in the ground, but simply how much and how fast we can recover it through waterflood”, says Don Simmons, President and CEO of Hemisphere. “There are several examples of similar pools within two townships of Hemisphere’s land that have reached recoveries as high as 40% of oil-in-place through enhanced oil recovery. We believe that we have barely scratched the surface in Atlee Buffalo at only 4% recovery to date and with only 12% recovery represented in our reserve valuation. We finally have the market, the money, and the momentum to develop this conventional play and we are thrilled to have kicked off our most meaningful drilling program yet”.
Management is excited to share results from its drilling program as they become available, with the first wells expected to be on production before the end of July.
Hemisphere’s Annual General and Special Meeting of shareholders is being held in the Pender room of the Oceanic Plaza, 1035 West Pender St., Vancouver, B.C., on June 22, 2018, at 9:30 a.m. Pacific Daylight Time.
About Hemisphere Energy Corporation
Hemisphere Energy Corporation is a producing oil and gas company focused on developing low risk conventional oil assets for minimal capital exposure through developing known pools of oil and optimizing waterflood projects. Hemisphere plans continual growth in production, reserves, and cash flow by drilling existing projects and executing strategic acquisitions. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME”.