I was impressed by the Hemisphere Energy (HME.V) presentation in Dallas. The company is profitable and they should increase production from 600 boepd now to over 800 boepd by year-end (mostly oil).
They plan to drill 7 low risk horizontal wells in 2014. Each well will cost approximately $1.0 million to drill and complete. They are shallow (~3,000 ft) with short horizontals. Each well should IP at around 120 BOPD and level off in the 40-50 BOPD range. Payouts are 6-8 months per well. EURs are over 100,000 BO per well.
My guess is that if oil prices hold up they will drill a few more wells, but they definitely want to maintain financial discipline. I like the team and their business plan. I like small-caps like this that have "running room". They have 30+ low risk drilling locations identified and many more potential sites.
We will publish a profile on it after they release year-end results and their reserve report.