Hemisphere Energy – Updates on the polymer flood (podcast)

[CreativeEquity]

http://www.kereport.com/2021/10/19/hemi ... reduction/

[dan_s]

If WTI averages $80US/bbl in 2022, Hemisphere should generate over $40Cdn million of operating cash flow in 2022. They should be debt free by mid-year.

My current valuation of HMENF is $1.95US per share. It closed today at $0.72US.

Hemisphere is coming to Houston on November 30 to host a luncheon for us.

[CreativeEquity]

Hi Dan, I noticed you are using a 6x multiple for the HMENF fair value, and 5x for IPOOF. They both have considerable growth in production looking forward, is the greater valuation due Hemisphere's larger reserves/EV ?

Also I am not familiar with this basin, any idea how much the polymer flood decreases the decline rate ? My concern would be production peaking in 2023, followed by a large drop thereafter without a big capex spend (Although I am guessing that is not the case. Just though you might have some insight..)

Finally I noticed Cibolo exercised quite a few warrants this month. I am hoping some of the overhang in the share price has been lifted. Thanks !

[dan_s]

Higher multiple for HMENF because their very strong balance sheet and Don's goal to be debt free soon.

The polymer flood is expected to cause an increase in production for several years and then hold production flat for many more. Altee Buffalo has a very low decline rate anyway. Three new wells will give Q4 production a nice boost.

InPlay does have more potential upside for us because of the large leasehold they have in the Duvernay Shale. With oil over $80/bbl that is an extremely valuable asset. Their recently announced acquisition also adds a lot more "running room". InPlay is hosting a luncheon for us in Houston tomorrow, so I will post an update on the company tomorrow.

Hemisphere is going to host a Houston luncheon for us on Nov 30.

[CreativeEquity]

Very helpful. Thanks !