Energy Prospectus

i just finished reading your Hemisphere review (thx), and a question jumped out at me. Hem's production, as per the review, is 99% oil, 1% natgas. How does a company so small separate out 1% of its production of natgas, and does it even pay to do so?

sorry, hit the button twice

The wells do produce more gas, but most of it is used to generate the power for pumps in the field. It reduces their lease operating expenses not to have to buy electricity.

All of the wells at Atlee Buffalo are connected by gathering lines to centralized tank batteries. Natural gas, water and oil are separated at centralized facilities. The oil is trucked out, gas goes into a sales line and water is reinjected.

Flaring or venting of gas is a "no no" in Canada, just like it is in the U.S.

Plus, the 110 mcfpd they did sell in Q3 generated over $35,000 in revenue.
110 x 92 days x $3.47Cdn = $35,116Cdn