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Hemisphere Energy Announces 2021 First Quarter Financial and Operating Results
Vancouver, British Columbia--(Newsfile Corp. - May 19, 2021) - Hemisphere Energy Corporation ...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Announces 2021 First Quarter Financial and Operating ResultsVancouver, British Columbia--(Newsfile Corp. - May 19, 2021) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (\"Hemisphere\" or the \"Company\") is pleased to provide its financial and operating results for the first quarter ended March 31, 2021. The first quarter of 2021 yielded excellent results for Hemisphere. Production averaged 9% higher than the fourth quarter, as wells started to respond to injector conversions done late in 2020. Production has since climbed even further, averaging over 1,800 boe/d to date in the second quarter (99% heavy crude oil and 1% conventional natural gas), based on field estimates between April 1st to May 16th, 2021 and including an April turnaround and some downtime during facilities and pipeline work. The Company invested $1.1 million in capital expenditures during the first three months of the year, which included facility upgrades to allow for polymer injection start-up at the Atlee Buffalo G pool by the end of June. With strong oil pricing through the quarter, Hemisphere generated adjusted funds flow from operations (AFF) of $4 million ($27.15/boe), and attained nearly $3 million in free cash flow which was utilized to pay down debt. This brings Hemisphere's current ratio of net debt to annualized AFF to 1.3. Management anticipates that with an AFF of $27.15/boe, Hemisphere's bottom line during the first quarter is amongst the highest of all its peers.HighlightsRecorded a 9% increase in production over the previous quarter, at 1,654 boe/d (99% heavy crude oil and 1% conventional natural gas).Generated revenue of $7.9 million, a 59% increase from the first quarter of 2020.Achieved low operating and transportation costs of $10.51/boe.Attained $5.3 million ($0.06/basic share) in operating netback, or $35.59/boe, which includes $0.67/boe in hedging losses.Realized $4 million ($0.05/basic share) in adjusted funds flow from operations, or $27.15/boe. Lowered net debt by 36% when compared to the first quarter of 2020, to $21.1 million.Lowered Net Debt to AFF by 66% from the first quarter of 2020, to 1.3.OutlookWith continued strength in oil prices this year, Hemisphere plans to implement the Atlee Buffalo G pool polymer flood conversion, complete a late summer 3-well drilling program, move forward the F pool po...