1/17/23 post on IV Energy Investing mb by OSF
HME production
I looked up well data on HME on Petroninja to see how things were progressing. November total (most recent data available) was 3100bpd. Talked with HME today and they indicated with most recent drilling now at closer to 3500bpd.
Several of the F pool wells are showing good response to the polymer flood with well production doubling in some cases.
G pool continues to look positive, particularly where polymer flooding (new injector) has been extended to the new wells drilled early last year.
WCS differentials have been a bit of a headwind recently but those look to be improving.
All in all I would say they are plugging along on plan, with drilling and polymer flooding continuing to add barrels every month.
Steady as she goes?
OSF
HMENF well data and production info
Re: HMENF well data and production info
My valuation of HMENF is $3.00US.
It is based on average production of 3,500 Boepd in 2023 and 4,000 Boepd in 2024.
I expect them to complete 6-8 wells each year.
If the polymer floods work, production should level off over 4,000 Boepd and stay there for many years without spending a lot on Capex.
With all interest-bearing debt paid off, Hemisphere will have a lot of free cash flow month after month.
It is based on average production of 3,500 Boepd in 2023 and 4,000 Boepd in 2024.
I expect them to complete 6-8 wells each year.
If the polymer floods work, production should level off over 4,000 Boepd and stay there for many years without spending a lot on Capex.
With all interest-bearing debt paid off, Hemisphere will have a lot of free cash flow month after month.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group