We have a busy luncheon schedule coming up.
Hemisphere Energy (HMENF), which has STRONG PRODUCTION GROWTH coming up in Q3 and Q4 is hosting two luncheons for us:
> October 9 in Houston at The Hess Club
> October 10 in Dallas at the Doubletree Hotel at Campbell Center
Earthstone Energy (ESTE), one of the companies in our Small-Cap Growth Portfolio is hosting
> November 13 in Houston at The Hess Club
Sundance Energy (SNDE), an Eagle Ford company that is up-listing to the Nasdaq in October is hosting
> December 11 in Houston at The Hess Club
All three of these companies are profitable and heavily weight to oil.
EPG Luncheons in the 4th Quarter
EPG Luncheons in the 4th Quarter
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: EPG Luncheons in the 4th Quarter
The speaker at our luncheons on October 9 in Houston and October 10 in Dallas
Don Simmons, B.Sc., P.Geol.
President and Chief Executive Officer
Mr. Simmons has extensive experience in petroleum geology and a proven track record of discovering oil and gas in Western Canada and internationally. Initially, Mr. Simmons served as the Company’s Vice President Exploration and became President and Chief Executive Officer in February 2008. Prior to joining Hemisphere, Mr. Simmons was a Geologist at a private oil and gas company, Sebring Energy, until its sale in 2007. Prior thereto, he spent five years with EnCana working on various projects in southeast Alberta and Ecuador. Mr. Simmons holds a Bachelor of Science degree in Geological Sciences from Queen's University and is a member of the Association of Professional Engineers and Geoscientists of Alberta.
I have updated my forecast/valuation model for Hemisphere Energy and posted it to the EPG website. The press release below is a "game-changer" for this small-cap.
Amounts below are in Canadian dollars
2017 actual results: Production of 659 Boepd resulted in a net loss of $0.04/share and operating cash flow of $0.028/share
2018 actual results: Production of 1,111 Boepd resulted in a net loss of $0.05/share and operating cash flow of $0.022/share < caused by big drop in Alberta oil prices in 2H 2018
2019 forecast: Production of 1,625 Boepd should result in net income of $0.08/share and operating cash flow of $0.165/share < HME's guidance is an exit rate of ~2,350 Boepd
2020 forecast: Production of 3,100 Boepd should result in net income of $0.32/share and operating cash flow of $0.459/share < Mid-point of HME's guidance of 3,000 to 3,200 Boepd
HME.V is currently trading for $0.155Cdn/share. Compare the share price to my forecasts for 2019 and 2020. < HME is now generating free cash flow from operations and as strong production growth locked in. Based on the company's December 31, 2018 reserve report, HME's Net Asset Value based on 2P reserves is $1.83Cdn/share.
Vancouver, British Columbia, September 17, 2019 – Hemisphere Energy Corporation (TSX-V: HME) ("Hemisphere" or the “Company") is pleased to provide an operational and production update on its southern Alberta oil assets.
Based on field estimates, average corporate production between September 1 and September 15, 2019 has been approximately 2,020 boe/d (96% oil). This represents an increase of approximately 45% over second quarter production and is the direct result of new wells from Hemisphere’s summer drilling program being brought onstream. Of the Company’s 11 newly drilled wells, nine are now on production with the remaining two expected to be brought on production by the end of this week.
The operational success of Hemisphere’s waterflood project in the Upper Mannville G pool has been shown through the increase in reservoir pressure seen at new wells across the pool. Specifically, the two remaining wells yet to be brought onstream have the highest pressures recorded in the pool since the Company started its waterflood in 2015. Management is optimistic that production rates will climb over the next few months as fluid levels, pump rates, facility operations, and injection levels are optimized.
Hemisphere’s corporate strategy through the remainder of 2019 remains focused on strengthening its balance sheet. Available cashflow will be used to lower net debt, purchase shares under the Company’s previously announced normal course issuer bid, and prepare for continual growth in 2020.
Please join Don Simmons, President and CEO of Hemisphere, when he presents at the Schachter Energy Conference on Saturday October 19, 2019 at the Mount Royal University in Calgary, Alberta, to discuss Hemisphere’s transformational change from under 700 boe/d in 2017 to over 2000 boe/d through organic development of its waterflooded oil pools.
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 through developing known pools of oil and optimizing waterflood projects. Hemisphere plans continual growth in production, reserves and cash flow by drilling existing projects and executing strategic acquisitions. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol "HME".
Don Simmons, B.Sc., P.Geol.
President and Chief Executive Officer
Mr. Simmons has extensive experience in petroleum geology and a proven track record of discovering oil and gas in Western Canada and internationally. Initially, Mr. Simmons served as the Company’s Vice President Exploration and became President and Chief Executive Officer in February 2008. Prior to joining Hemisphere, Mr. Simmons was a Geologist at a private oil and gas company, Sebring Energy, until its sale in 2007. Prior thereto, he spent five years with EnCana working on various projects in southeast Alberta and Ecuador. Mr. Simmons holds a Bachelor of Science degree in Geological Sciences from Queen's University and is a member of the Association of Professional Engineers and Geoscientists of Alberta.
I have updated my forecast/valuation model for Hemisphere Energy and posted it to the EPG website. The press release below is a "game-changer" for this small-cap.
Amounts below are in Canadian dollars
2017 actual results: Production of 659 Boepd resulted in a net loss of $0.04/share and operating cash flow of $0.028/share
2018 actual results: Production of 1,111 Boepd resulted in a net loss of $0.05/share and operating cash flow of $0.022/share < caused by big drop in Alberta oil prices in 2H 2018
2019 forecast: Production of 1,625 Boepd should result in net income of $0.08/share and operating cash flow of $0.165/share < HME's guidance is an exit rate of ~2,350 Boepd
2020 forecast: Production of 3,100 Boepd should result in net income of $0.32/share and operating cash flow of $0.459/share < Mid-point of HME's guidance of 3,000 to 3,200 Boepd
HME.V is currently trading for $0.155Cdn/share. Compare the share price to my forecasts for 2019 and 2020. < HME is now generating free cash flow from operations and as strong production growth locked in. Based on the company's December 31, 2018 reserve report, HME's Net Asset Value based on 2P reserves is $1.83Cdn/share.
Vancouver, British Columbia, September 17, 2019 – Hemisphere Energy Corporation (TSX-V: HME) ("Hemisphere" or the “Company") is pleased to provide an operational and production update on its southern Alberta oil assets.
Based on field estimates, average corporate production between September 1 and September 15, 2019 has been approximately 2,020 boe/d (96% oil). This represents an increase of approximately 45% over second quarter production and is the direct result of new wells from Hemisphere’s summer drilling program being brought onstream. Of the Company’s 11 newly drilled wells, nine are now on production with the remaining two expected to be brought on production by the end of this week.
The operational success of Hemisphere’s waterflood project in the Upper Mannville G pool has been shown through the increase in reservoir pressure seen at new wells across the pool. Specifically, the two remaining wells yet to be brought onstream have the highest pressures recorded in the pool since the Company started its waterflood in 2015. Management is optimistic that production rates will climb over the next few months as fluid levels, pump rates, facility operations, and injection levels are optimized.
Hemisphere’s corporate strategy through the remainder of 2019 remains focused on strengthening its balance sheet. Available cashflow will be used to lower net debt, purchase shares under the Company’s previously announced normal course issuer bid, and prepare for continual growth in 2020.
Please join Don Simmons, President and CEO of Hemisphere, when he presents at the Schachter Energy Conference on Saturday October 19, 2019 at the Mount Royal University in Calgary, Alberta, to discuss Hemisphere’s transformational change from under 700 boe/d in 2017 to over 2000 boe/d through organic development of its waterflooded oil pools.
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 through developing known pools of oil and optimizing waterflood projects. Hemisphere plans continual growth in production, reserves and cash flow by drilling existing projects and executing strategic acquisitions. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol "HME".
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group