Hemisphere Energy (TSXV:HME) grows proved reserve value to $309M

• Hemisphere Energy (HME) shared results from a recent reserve evaluation with a proved reserve value of $309 million
• Hemisphere grew its proved reserve value to $309 million and proved plus probable reserve value to $395 million
• Year-over-year production went from 1,820 barrels of oil equivalent per day to 2,827 barrels of oil equivalent per day
• So far this year, production has grown to just over 3,200 barrels of oil equivalent per day with two additional wells that began producing last month
• Hemisphere Energy Corporation (HME) was up 0.75 per cent, trading at $1.34 per share at 1:14 p.m. EST

Hemisphere Energy (HME) has shared results from a recent reserve evaluation with a proved reserve value of $309 million.

According to the evaluation, Hemisphere grew its proved reserve value to $309 million and proved plus probable reserve value to $395 million. The company also replaced 188 per cent of 2022 production and increased reserve value by 16 per cent to $228 million

Evaluation accounted for recent activities

The evaluation studied Hemisphere activities up until the end of 2022. Last year, the company invested $18.4 million to drill 13 wells, applied a polymer-surfactant flood in the Upper Mannville F oil pool, upgraded facilities in Atlee Buffalo, purchased land, and pre-purchased some materials for its 2023 drilling program.

With Hemisphere’s capital additions, the company’s corporate production increased by approximately 55 per cent year-over-year. Production went from 1,820 barrels of oil equivalent per day to 2,827 barrels of oil equivalent per day.

So far this year, the company’s production has grown even more to just over 3,200 barrels of oil equivalent per day with two additional wells that began producing last month.

Production goes up and debt goes down

Additionally, Hemisphere reduced its year-end net debt by 93 per cent to $1.2 million and distributed nearly $8 million in dividends. It also purchased 2.3 million shares under its normal course issuer bid for a collective $3.4 million.

The company’s management estimates that total undiscounted and uninflated existing ADR is $8.1 million which includes all abandonment, decommissioning, and reclamation costs associated with all its wells, pipelines, and facilities.

Hemisphere Energy (HME) was up 0.75 per cent, trading at $1.34 per share at 1:14 p.m. EST.