Hemisphere Energy Corporation (TSX-V: HME) ("Hemisphere" or the "Company") is pleased to announce its financial and operating results for the year ended December 31, 2016.
During 2016 Hemisphere focused on strategic investments to build long term shareholder value by maximizing reserve additions with minimal capital. The Company concentrated on its Atlee Buffalo property in southeastern Alberta where it expanded its waterfloods, built a processing facility in its Upper Mannville F Pool, and drilled a key development oil well in its Upper Mannville G Pool. These projects yielded significant proved plus probable reserve additions, and have positioned the Company for low risk full scale future development of the property.
2016 Annual Highlights
Fourth Quarter 2016 Highlights
Selected financial and operational highlights should be read in conjunction with Hemisphere's audited annual financial statements and related Management's Discussion and Analysis for the year ended December 31, 2016. These reports, including the Company's Annual Information Form for the year ended December 31, 2016, are available on SEDAR at www.sedar.com and on Hemisphere's website at www.hemisphereenergy.ca.
Hemisphere has built a high quality, oil weighted asset base with low cost, low risk, fast payout, and high growth attributes. The depressed oil price over the past two years has made it a challenge to grow production and cashflow so Hemisphere instead focused on delivering long term shareholder value by strategically investing in asset consolidation, implementing enhanced oil recovery projects, and prioritizing drilling to maximize reserve growth per dollar spent.
To date in 2017 oil prices have improved and as such, Hemisphere is shifting its focus back to value-creating growth through low risk expansion of proven projects. The Company has a number of development drilling opportunities in its southeast Alberta asset base in both the Atlee Buffalo and Jenner properties that have enticing economics even in the current price environment. Through the remainder of 2017 and into 2018 Hemisphere plans to expand development of these exciting assets.
In the first quarter of 2017 Hemisphere's production averaged approximately 570 boe/d (92% oil) and it ended the quarter with an estimated $11.5 million in net debt. Additionally, the Company executed two oil hedge contracts. The first was for 100 bbl/d from January 1, 2017 to June 30, 2017 at a price of $72.15 CAD, and the second was for 100 bbl/d from February 1, 2017 to July 31, 2017 at a price of $69.50 CAD.
The management and directors of Hemisphere Energy would like to thank shareholders for their continued support and commitment over the past year, and look forward to building value in the year ahead.
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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