Hemisphere Energy Update - October 2

Post Reply
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Hemisphere Energy Update - October 2

Post by dan_s »

Hemisphere Energy Reaches 2,400 boe/d with Full Summer Drill Program on Production

Hemisphere trades as HMENF in the U.S.

Vancouver, British Columbia--(Newsfile Corp. - October 2, 2019) - Hemisphere Energy Corporation (TSXV: HME) ("Hemisphere" or the "Company") is pleased to provide an operational and production update on its southern Alberta oil assets.

During the second half of September, Hemisphere put the final two wells of its eleven well summer program on production. Based on field estimates, average corporate production between September 16 and September 30, 2019, has been approximately 2,400 boe/d (97% oil). < This compares to actual production of 1,367 Boepd in the 2nd quarter.

Hemisphere is monitoring the oil price environment as it evaluates its capital spending for the fourth quarter of 2019 and its budget for 2020. The Company's corporate strategy remains focused on strengthening its balance sheet. Hemisphere intends to use its available cashflow for strategic growth along with lowering net debt and purchasing shares under the Company's previously announced normal course issuer bid.

Don Simmons, President and CEO of Hemisphere, will be presenting to the Energy Prospectus Group in Houston, Texas on October 9, 2019 and Dallas, Texas on October 10, 2019. Later in the month Mr. Simmons will also be presenting at the Schachter Energy Conference on Saturday October 19, 2019 at the Mount Royal University in Calgary, Alberta. The presentation will outline Hemisphere's transformational change from under 700 boe/d in 2017 to 2,400 boe/d currently, and its future opportunities for growth through the organic development of its oil assets.

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 by developing existing oil pools with horizontal drilling and enhanced oil recovery. Hemisphere plans continual growth in production, reserves and cash flow by developing existing projects and executing strategic acquisitions. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol "HME".

For more information, visit our website at www.hemisphereenergy.ca for our corporate presentation or contact:

Don Simmons, President & Chief Executive Officer
Telephone: (604) 685-9255
Email: simmons@hemisphereenergy.ca
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Hemisphere Energy Update - October 2

Post by dan_s »

My updated forecast/valuation model for Hemisphere can be downloaded from the EPG website.

Note that:
1. The model is in Canadian Dollars, so my stock valuation of $0.67 converts to $0.53 U.S.
2. The natural gas price in Alberta is "insane", but it has almost no impact on Hemisphere because their production is almost entirely oil. BTW it snowed 3 feet in Calgary on Sunday & Monday.
3. I talked to Don on Monday and he plans to be as aggressive as he can be in buying back their shares in the market. Therefore, the share count used in the model for 2020 is probably too high.
4. Hemisphere is not a shale company. Their oil comes from secondary recover programs (waterfloods) that have very low decline rates. In fact, most waterfloods increase production as pressure builds in the pool.

If you are in Houston or Dallas and you want to attend our luncheons next week, please register today. Seating is limited for both luncheons.
Dan Steffens
Energy Prospectus Group
Post Reply