Hemisphere Energy Update - Sept 27

[dan_s]

Note below is from Don Simmons on 9-27-2019. Don will be speaking at our luncheons in Houston on October 9 and Dallas on October 10. Please register if you plan to attend.

"2020 is a year where Hemisphere will be focusing on debt reduction and share buybacks in the 1H and production growth in the 2H. This high level strategy will position us with a balance sheet to handle whatever gets thrown our way, rewards shareholders by increasing their position in the company when market valuations are at historic lows, and sets the stage for another year of significant production growth taking advantage of the cheaper summer drilling window."

Hemisphere's production should ramp up from 1,367 Boepd (96.4% crude oil) in Q2 to a 2019 exit rate of approximately 2,300 Boepd (~97% crude oil). The Company's 2019 summer drilling program was very successful. They've now completed all of the wells. Free cash flow from operations will shore up the balance sheet and fund 100% of next summer's drilling program that should push production over 3,000 Boepd by this time next year.

We will publishing an updated profile on HME soon after the two Texas luncheons.

After our luncheons Don Simmons , President and CEO of Hemisphere, will be presenting at the Schachter Energy Conference on Saturday October 19, 2019 at the Mount Royal University in Calgary, Alberta , to discuss Hemisphere's transformational change from under 700 boe/d in 2017 to over 2000 boe/d through organic development of its waterflooded oil pools.

About Hemisphere Energy Corporation

Hemisphere Energy Corporation is a producing Canadian 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".

[dan_s]

A follow-up note from Don: "We have also purchased 475,000 shares so far in the share buyback so you can adjust your share outstanding count in the model."