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Source: Hemisphere Energy
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  • Hemisphere Energy (HME) has released an update on its drilling operations in southeast Alberta
  • The company decided to advance a portion of its 2022 plans due to issues with rig availability and projected cost increases
  • This strategy will ensure that Hemisphere begins producing and adding to its reserves earlier in the year
  • Hemisphere also anticipates changes to its previously announced 2021 guidance
  • Hemisphere is a Canadian oil company focused on the sustainable growth of its heavy oil assets
  • Shares in Hemisphere Energy Corp. (HME) are steady, trading at $0.99 per share

Hemisphere Energy (HME) has released an update on its drilling operations in the Atlee Buffalo area of southeast Alberta.

Due to rig availability constraints and projected cost increases in 2022, Hemisphere has decided to accelerate a portion of its 2022 plans. The company has commenced a drilling program in the Atlee F pool, planning on operating up to four wells during this year’s fourth quarter.

With the new wells expected to begin production in January 2022, this strategy will ensure that Hemisphere begins producing and adding to its reserves earlier in the year, mitigating the impact of supply chain issues that threaten markets across the country.

So far, minimal capital has been invested into Atlee F as Hemisphere mainly focused on developing it Atlee G pool. The company believes that this oil reservoir holds considerable recovery potential by expanding its existing waterflood.

In light of the timing of this advanced drilling program, Hemisphere anticipates changes to its previously announced 2021 guidance.

With the addition of $4 million in capital expenditures for the new wells expected to be incurred in 2021, year-end net debt is projected to be approximately $16 million.

Meanwhile, average annual production for 2021 is projected to be lower by approximately 5% due to the timing of conversions of oil producer wells into injectors, delayed production start-up of the September 2021 drilling program, and downtime associated with facility expansion work in Atlee Buffalo.

At this time, 2022 guidance remains unchanged with the exception of shifting $4 million in capital expenditures forward into 2021.

Hemisphere is a Canadian oil company focused on the sustainable growth of its heavy oil assets.

Shares in Hemisphere Energy Corp. (HME) are steady, trading at $0.99 per share as of 2:52 pm EST.

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