Vancouver, British Columbia – Hemisphere Energy Corporation (TSXV: HME) (OTCQB: HMENF) (“Hemisphere” or the “Company”) is pleased to provide an update on its Upper Mannville G pool polymer project in the Atlee Buffalo area of southeast Alberta.
Hemisphere has made significant progress on the construction work at its G pool facility that will allow the Company to convert its currently active waterflood into a polymer flood. Hemisphere is awaiting the delivery of its specialized polymer skid, scheduled in early June, for the final phase of field installation. Polymer injection is anticipated to start by the end of the second quarter.
Polymer flooding is an enhanced oil recovery (EOR) method that is commonly used across the world to improve oil recovery from reservoirs. While similar to waterflooding, it uses a more viscous solution than water as the injectant in order to improve sweep efficiency and oil displacement in the reservoir. Water is mixed with polymer powder at a specialized polymer skid before being pumped through existing injectors into the oil pool. The process is designed to prevent high mobility water from creating undesirable pathways through the reservoir and causing premature water breakthrough at producing wells, thereby leaving valuable oil stranded. The intent of all polymer projects is to increase oil production, decrease water production, and increase overall oil recovery.
Hemisphere’s reservoir modelling shows tremendous potential upside to polymer flood conversion in this pool. While modelling shows the potential for production from existing G pool wells to grow by 80% from current rates of approximately 1400 boe/d by the end of 2022, the Company’s corporate guidance has budgeted conservative growth of only 25% from these existing wells. Further growth over the next two years is anticipated to occur through a 10 well drilling program at both the Upper Mannville F and G pools, resulting in 2022 exit production of 3000 boe/d, as previously released in our two-year plan.
“This pool has incredible deliverability, and we are highly optimistic about its potential performance under polymer flood. We’re already a much stronger company than we were a few years ago when we started developing these assets, and it is this project that will really move the needle for Hemisphere,” said Don Simmons, President and CEO of Hemisphere Energy.