Energy Prospectus

When do we expect polymer flood reports next from Hemisphere? What oil prices are they receiving now?

They are on track to retire all debt by mid-year 2022? Could they surprise us with an earlier pay-off?

These are conventional reserves (low cost to produce), why doesn't anyone care?


Kudos on Goodrich Petroleum, bought at $16 in June and pleased with $22 together. The fossil fuel industry is a mater of punctuation for the long-term. Oil gets a ? Natural gas gets a !
My greatest "fear" with GDP is when they become a debt-free CASH MACHINE, they will be bought out too cheaply. The best defense is an aggressive acquisition offense. Eat or be eaten.
Also, committing to a rising dividend will be important. Many sending Christmas cards to shareholders might help!!

Hemisphere:
> They are selling their oil for $60 to $65Cdn per barrel. It is heavy oil.
> Their last update was August 17th. Not much to report since then, but they may send out an Operations Update in mid-Oct with results from three new wells.
> Subsequent to quarter-end, Hemisphere announced that it had established a new $35 million extendible two-year committed term facility with ATB Financial and completed early payout of its 5-year US Dollar term loan with Cibolo Energy Partners. The new Credit Facility is anticipated to result in a significant reduction in corporate interest costs, provide additional flexibility to the Company, and reduce foreign exchange risk.
> HME.V is up 300% YTD, so I think some investors do care. I'm one of them.
> Hemisphere's production is from two waterfloods that are not conventional. Waterfloods are considered "Secondary". The Polymer flood is just an enhanced water flood.
> Polymer Floods do take time to impact production, it will probably be late Q4 before they see a production uptick from the thicker fluid injections.
> Three new horizontal producing wells should be online early Q4. See row 54 of my forecast model, which is based on their production guidance.

GDP has a lot of upside for us. I hope to get them back soon to host a webinar.