Energy Prospectus

I spent most of the day working on HME. We will be publishing a profile on the company on Tuesday morning (Sept 18).

After going over it with the company, I now have a HIGH level of confidence in my forecast/valuation model for Hemisphere. If their actual Q3 results match up with my forecast, this puppy will be going into our Small-Cap Growth Portfolio.

The stock is trading today at less than 1 X my forecast of 2019 Operating Cash Flow Per Share. Yes, just 1X CFPS

Based on the company's 12/31/2017 3rd party engineering report, which was based on much lower oil prices than we have today, HME's net asset value is $0.83Cdn per share. Today, HME is trading at $0.21Cdn/share.

This is a "Canadian Junior". Canadian Juniors like InPlay Oil and Hemisphere are WAY OFF the Wall Street Gang's radar screen. If they hit my Q3 and Q4 production forecasts, they should draw more attention.

My profile on Hemisphere Energy has been posted to the EPG website.

My current valuation is $0.55Cdn/share, but the valuation will go a lot higher if Q3 results confirm my forecast model.

It is heavily weighted to oil.

Dan, you previously mentioned that HME was a candidate for Small Cap port. Is it time for an update on company prospects??

I updated the forecast/valuation model for Hemisphere on 11/23 and posted it to the EPG Website. You can find it under the Small-Cap tab.

Production was up 97 Boepd from Q2 to Q3 and s/b up another 250 Boepd from Q3 to Q4.

Take a hard look at the 2019 forecast and note that it is in Canadian dollars.