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Hemisphere Energy Announces 2021 Second Quarter Financial and Operating Results
Vancouver, British Columbia--(Newsfile Corp. - August 17, 2021) - Hemisphere Energy Corporatio...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Announces 2021 Second Quarter Financial and Operating ResultsVancouver, British Columbia--(Newsfile Corp. - August 17, 2021) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (\"Hemisphere\" or the \"Company\") is pleased to provide its financial and operating results for the second quarter ended June 30, 2021.During the second quarter, Hemisphere achieved record revenue of $10.1 million, generated adjusted funds flow from operations (AFF) of $4.2 million ($26.03/boe), and increased average production by 8% when compared to the previous quarter. Hemisphere's capital expenditures during the quarter were $1.9 million, including the construction, installation, and start-up of the Atlee Buffalo G pool polymer skid. Subsequent to quarter-end, Hemisphere announced that it had established a new $35 million extendible two-year committed term facility with ATB Financial and completed early payout of its 5-year US Dollar term loan with Cibolo Energy Partners. The new Credit Facility is anticipated to result in a significant reduction in corporate interest costs, provide additional flexibility to the Company, and reduce foreign exchange risk.HighlightsGenerated record revenue of $10.1 million, a 311% improvement over the second quarter of 2020.Recorded production of 1,786 boe/d (98% heavy crude oil and 2% conventional natural gas), an 8% increase over the previous quarter and 9% increase over the second quarter of last year.Achieved operating and transportation costs of $12.11/boe, including a turn-around at one of its batteries.Increased operating netback by 107% to $5.6 million ($34.32/boe, or $0.06/basic share), including hedging losses of $4.90/boe, when compared to the second quarter of 2020.Increased AFF by 213% to $4.2 million ($26.03/boe, or $0.05/basic share), when compared to the second quarter of 2020.Lowered net debt to $18.5 million, a 40% reduction as compared to the second quarter of 2020.Lowered leverage ratio of net debt to Q2 annualized AFF to 1.1, an 81% reduction as compared to the second quarter of 2020.OutlookHemisphere is currently in the process of upgrading the size of its treating facilities at the Atlee G pool battery in anticipation of increased oil production with ongoing polymer flood optimization work. The Company is also planning to start a three-well drilling program by ...