Hemisphere Energy (HMENF) Update - August 27

Hemisphere Energy (HMENF) Update - August 27

Postby dan_s » Fri Aug 27, 2021 11:13 am

Hemisphere will be drilling three new horizontal producing wells within their G-Pool at Buffalo Atlee in mid-September. These wells will be completed in October and they are the primary reason that I am forecasting a significant increase in Hemisphere's oil production from Q3 to Q4.

The polymer flood at the G-Pool should start impacting production late in Q4 or early Q1 2022. The polymers thicken the injected water and push more oil through the formation, but they do slow the fluid flow. The new wells and the polymer flood should increase Hemisphere's oil production by 50% within 12-months; from 1,758 BOPD in Q2 to over 2,700 BOPD by Q3 2022. If WTI averages $70/bbl in 2022, Hemisphere's heavy oil realized price should be approximately $70Cdn/bbl and their operating cash flow next year should be approximately $40Cdn million. < This compares to their term loan debt at June 30, 2021 at $21Cdn million, which was recently paid off and replaced with a bank credit facility with a lower interest rate.

Vancouver, British Columbia--(Newsfile Corp. - July 28, 2021) - 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.
Dan Steffens
Energy Prospectus Group
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Re: Hemisphere Energy (HMENF) Update - August 27

Postby CreativeEquity » Mon Nov 08, 2021 8:03 pm

I found this write up from June which showed a few examples of very successful polymer flood pools in the same area as Hemisphere's Atlee Buffalo location.

https://drive.google.com/file/d/1s8zqMjM1IJSxb0-oLSox7-t6w1lzQj5W/view
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