TSX-V: HME – VANCOUVER, Jan. 10, 2017 /CNW/ – Hemisphere Energy Corporation (“Hemisphere” or the “Company”) (TSX-V: HME) is pleased to announce the renewal of its credit facility with no changes.
Following the mid-year review with its lender, Hemisphere’s credit facility was reaffirmed at $12.5 million. All covenants and applicable margins on borrowing costs remain unchanged. As at January 9, 2017, the Company has drawn approximately $11.2 million on the credit facility.
Hemisphere owns and operates 100% of a number of Upper Mannville oil pools in the Jenner and Atlee Buffalo areas of Southern Alberta. The Company continues to focus on the development and exploitation of these pools to ensure optimal reservoir management and maximum recovery from these conventional oil assets.
In 2016, Hemisphere achieved its main objectives of expanding its waterflood schemes and installing a water recycling facility in the Atlee Buffalo Upper Mannville F pool. The Company also drilled its first producing development oil well in the Upper Mannville G pool. This well continues to produce directly to sales at approximately 55 bbl/d of oil after 5 months of production with significant room to increase the pump speed once water recycling facilities are constructed for the pool.
Hemisphere’s prudent capital management through the significant downturn of the past two years has allowed the Company to cautiously prove the concept of waterflood in both its Atlee Buffalo pools, while protecting its balance sheet during a time of extreme challenge in the oil industry. Success at all of its enhanced oil recovery pilot projects thus far, in combination with strengthening market conditions, now allows Hemisphere to move forward with a shift towards full development of both Atlee Buffalo pools. A total of 66 MMBbl of original oil in place is mapped across these pools by McDaniel & Associates Consultants Ltd. (effective as of December 31, 2015), Hemisphere’s independent reserve auditors, with less than 4% of the original oil recovered to date.
For more detailed information on Hemisphere’s exciting development opportunities please see our corporate presentation on our website at www.hemisphereenergy.ca.
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 projects and executing strategic acquisitions. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME”.