Hemisphere Energy Corporation (TSX-V: HME) ("Hemisphere" or the "Company") announces its financial and operating results for the three months ended March 31, 2017.
Q1 2017 Highlights
During the first quarter of 2017, Hemisphere continued to be conservative in its capital spending while focusing on preparation of development plans in its core producing properties. With all four waterflood pilot projects successfully underway in Atlee Buffalo, the Company raised $1.1 million of development flow-through equity in April 2017 in order to drill up to two wells in the third quarter to expand production and reserves in the Upper Mannville G pool. Available cashflow will be used for installation of additional facilities at the G pool, which is currently producing at a rate limited by pump and tank sizes.
With the completion of a turnaround in Jenner in early May and the recent addition of a pipeline in Atlee Buffalo to help reinject more water, corporate production has reached approximately 650 boe/d (93% oil), based on field estimates, in the last week. A number of optimization candidates have also been identified to increase pump sizes in the near future.
The Company's annual review for its demand operating credit facility has been completed and the borrowing base has been reaffirmed at $12.5 million. The facility is secured by a general security agreement and a floating charge on all lands of the Company and bears an interest at the bank's prime rate plus 2.5%, as well as a standby charge for any undrawn funds. Current corporate net debt is estimated at $10.2 million with approximately $9.9 million drawn on the credit facility.
Hemisphere's corporate strategy is to continue to achieve organic production and reserve growth while preserving financial flexibility. With continued success of its waterfloods and planned capital expenditures the Company expects to see growth in production and reserves through the year. Economics in the Atlee Buffalo waterflood play are strong at current strip pricing and management believes the Company has considerable growth upside through development of these exceptional assets.
Annual General and Special Meeting of Shareholders
Hemisphere's Annual General and Special Meeting of Shareholders is being held in the Pender Room of Oceanic Plaza, 1035 West Pender Street, Vancouver, British Columbia on Wednesday, June 14, 2017 at 9:30 a.m. (Pacific Daylight Time).
About Hemisphere Energy Corporation
Hemisphere Energy Corporation is a producing oil and gas company focused on developing conventional oil assets with low risk drilling opportunities. Hemisphere plans continual 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".
SOURCE: Hemisphere Energy Corporation
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