Vancouver, British Columbia – Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF)(“Hemisphere” or the “Company”) is pleased to announce that it has entered into a new extendible two year committed term facility with ATB Financial (the “Lender”), providing for borrowings of up to $35,000,000 (the “Credit Facility”). As part of entering into the Credit Facility, the Company has fully repaid and terminated its existing term loan with Cibolo Energy Partners (the “Former Term Loan”). The refinancing resulting from the new Credit Facility is expected to provide additional flexibility to the Company, and is anticipated to result in a significant reduction in corporate interest costs for Hemisphere moving forward.
Hemisphere’s Former Term Loan was instrumental in allowing the Company to grow its operations, reserves, and cash flow over the past four years such that Hemisphere could return to a reserve-based loan with a Canadian institution that offers a long-term partnership to help support further growth.
Hemisphere’s 2021 plans remain unchanged from previously announced guidance. The Company intends to drill up to three wells in Atlee Buffalo by the end of the third quarter, and will use any excess cash flow to further pay down debt.
About Hemisphere Energy Corporation
Hemisphere is a Canadian oil company focused on sustainable growth of its high netback, low decline conventional heavy oil assets through water and polymer flood enhanced recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME” and on the OTCQX Venture Marketplace under the symbol “HMENF”.