Hemisphere versus InPlay

[RTaber1]

Which one is more likely to double sooner from its current price, HMENF or IPOOF? Would you suggest HMENF based on the possible catalyst of the polymer flood production report in mid-August? Does IPOOF have a nearterm comparable catalyst? Thank you.

[dan_s]

Hemisphere has started injecting polymer into the Atlee Buffalo G Pool. It will take several months before they see an impact in production rates. Three more new wells will also add production late Q3. If Q4 production matches up with my forecast, the stock price should double. Paying off all of their debt and the recently announced stock buyback program will increase equity value. The polymer flood will probably take over a year to reach peak production. If results match up with the projections, Hemisphere's production go from 1,653 BOPD in Q1 2021 to ~2,400 BOPD by year-end 2021, ~3,500 BOPD by year-end 2022 and ~4,500 BOPD by year-end 2023. Atlee Buffalo has several decades of remaining life.

InPlay is a larger company with over 5,300 Boepd of production and on-track for an exit rate over 5,800 Boepd. It also has more debt. Recent well results are very encouraging and they have a lot of running room at Pembina. See slide 12 of their July presentation. With oil over $70/bbl, InPlay's leasehold in the Duvernay Shale play is very valuable. See slide 21 of their July presentation.

I have no idea which stock will double first, but if oil stays over $70/bbl and their results match up with my forecast models they both should trade at much higher prices. HME.V is up 365% YTD and IPO.TO is up 430% YTD.