TSX-V: HME
VANCOUVER, Aug. 1, 2018 /CNW/ - Hemisphere Energy
Corporation (TSX-V: HME) ("Hemisphere" or the "Company") is pleased
to provide an update on its drilling and field
operations.
Hemisphere has continued to show significant progress in
production growth. During the three month period ended June 30, 2018, the Company achieved an average
corporate production rate of over 1,050 boe/d (96% oil), based on
field estimates. This growth in production represents a 22%
increase over the first quarter of 2018 and a 75% increase year
over year.
Hemisphere is currently drilling the largest program in its
corporate history with up to 11 wells. Drilling operations are
expected to be completed over the next two months. To date in the
current development program, the Company has completed the drilling
of five wells with the sixth well being drilled at this time.
Completion and pipeline operations are ongoing in the field with
the first two wells recently brought on production. All other wells
drilled by the Company in this drilling program are expected to be
tied-in and on production or waiting for injection approvals by the
end of September 2018.
The Company has also initiated facility expansion work at both
its Atlee Buffalo Upper Mannville F and G pools to provide
additional production and injection capacity.
"Hemisphere continues to execute its corporate strategy of
organic growth through drilling highly economic wells into
conventional oil pools," said Don
Simmons, President and CEO of Hemisphere Energy. "We see
this sizeable development program in Atlee
Buffalo as a major turning point for the Company and an
exciting step forward in capturing the value of these assets."
About Hemisphere Energy Corporation
Hemisphere Energy Corporation is a producing oil and gas company
focused on the development of low risk conventional oil assets for
minimal capital exposure by drilling known pools of oil and
optimizing waterflood projects. Hemisphere plans continued 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".
Forward-looking Statements
Certain statements included in this news release constitute
forward-looking statements or forward-looking information
(collectively, "forward-looking statements") within the meaning of
applicable securities legislation. Forward-looking statements are
typically identified by words such as "anticipate", "continue",
"estimate", "expect", "forecast", "may", "will", "project",
"could", "plan", "intend", "should", "believe", "outlook",
"potential", "target" and similar words suggesting future events or
future performance. In particular, but without limiting the
generality of the foregoing, this news release includes
forward-looking statements regarding Hemisphere's estimated average
daily production rates for the three month period ended
June 30, 2018, Hemisphere's plans to
complete drilling operations up to 11 wells in Atlee Buffalo over the next two months,
Hemisphere's expectation that all wells drilled by the Company to
date in 2018 will be tied-in and on production or waiting for
injection approvals by the end of September
2018 and its plans for continual growth in production,
reserves, and cash flow by drilling existing projects and executing
strategic acquisitions.
Forward‐looking statements are based on a number of material
factors, expectations, or assumptions of Hemisphere which have been
used to develop such statements but which may prove to be
incorrect. Although Hemisphere believes that the expectations
reflected in such forward‐looking statements are reasonable, undue
reliance should not be placed on forward‐looking statements because
Hemisphere can give no assurance that such expectations will prove
to be correct. In addition to other factors and assumptions which
may be identified herein, assumptions have been made regarding,
among other things: that Hemisphere will continue to conduct its
operations in a manner consistent with past operations; results
from drilling and development activities are consistent with past
operations; the quality of the reservoirs in which Hemisphere
operates and continued performance from existing wells; the
continued and timely development of infrastructure in areas of new
production; the accuracy of the estimates of Hemisphere's reserve
volumes; certain commodity price and other cost assumptions;
continued availability of debt and equity financing and cash flow
to fund Hemisphere's current and future plans and expenditures; the
impact of increasing competition; the general stability of the
economic and political environment in which Hemisphere operates;
the general continuance of current industry conditions; the timely
receipt of any required regulatory approvals; the ability of
Hemisphere to obtain qualified staff, equipment and services in a
timely and cost efficient manner; drilling results; the ability of
the operator of the projects in which Hemisphere has an interest in
to operate the field in a safe, efficient and effective manner; the
ability of Hemisphere to obtain financing on acceptable terms;
field production rates and decline rates; the ability to replace
and expand oil and natural gas reserves through acquisition,
development and exploration; the timing and cost of pipeline,
storage and facility construction and expansion and the ability of
Hemisphere to secure adequate product transportation; future
commodity prices; currency, exchange and interest rates; regulatory
framework regarding royalties, taxes and environmental matters in
the jurisdictions in which Hemisphere operates; and the ability of
Hemisphere to successfully market its oil and natural gas
products.
The forward‐looking statements included in this news release
are not guarantees of future performance and should not be unduly
relied upon. Such statements, including the assumptions made in
respect thereof, involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to defer
materially from those anticipated in such forward‐looking
statements including, without limitation: changes in commodity
prices; changes in the demand for or supply of Hemisphere's
products, the early stage of development of some of the evaluated
areas and zones; unanticipated operating results or production
declines; changes in tax or environmental laws, royalty rates or
other regulatory matters; changes in development plans of
Hemisphere or by third party operators of Hemisphere's properties,
increased debt levels or debt service requirements; inaccurate
estimation of Hemisphere's oil and gas reserve volumes; limited,
unfavourable or a lack of access to capital markets; increased
costs; a lack of adequate insurance coverage; the impact of
competitors; and certain other risks detailed from time‐to‐time in
Hemisphere's public disclosure documents, (including, without
limitation, those risks identified in this news release and in
Hemisphere's Annual Information Form).
The forward‐looking statements contained in this news release
speak only as of the date of this news release, and Hemisphere does
not assume any obligation to publicly update or revise any of the
included forward‐looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities laws.
Oil and Gas Advisories
A barrel of oil equivalent ("boe") may be misleading,
particularly if used in isolation. A boe conversion ratio of 6
Mcf:1 Bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. In addition, given that
the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy
equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.
Definitions and Abbreviations
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boe/d
|
barrel of oil
equivalent per day
|
|
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Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Hemisphere Energy Corporation
