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Hemisphere Energy Announces 2022 Fourth Quarter and Record Year-End Financial and Operating Results
Vancouver, British Columbia--(Newsfile Corp. - April 20, 2023) - Hemisphere Energy Corporation (...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Announces 2022 Fourth Quarter and Record Year-End Financial and Operating ResultsVancouver, British Columbia--(Newsfile Corp. - April 20, 2023) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (\"Hemisphere\" or the \"Company\") is pleased to provide its financial and operating results for the fourth quarter and year ended December 31, 2022. 2022 Highlights Increased annual production to 2,828 boe/d (99% heavy oil), a 55% increase over 2021. Achieved record annual revenue of $96.7 million, a 124% increase over 2021. Realized record annual adjusted funds flow from operations (\"AFF\") of $46.7 million(1), a 152% increase over 2021. Executed a successful $18.3 million capital expenditure(1) program that included implementing a new polymer flood at the F pool, expanding and upgrading facilities, purchasing land and seismic, and drilling eight development, two (one net) exploration, and three re-entry wells. Generated $28.4 million of free funds flow (\"FFF\")(1) after all capital expenditures, a 337% increase over the previous year. Decreased year-end net debt(1) by 95% to just under $1.0 million. Implemented Hemisphere's first ever quarterly dividend in June, and dispersed total returns of $7.7 million to shareholders during the year at $0.025/share. Re-purchased and cancelled 2.3 million shares, returning $3.4 million to shareholders. Increased Proved Developed Producing (PDP) NPV10 BT reserve value to $228 million and volumes to 8.2 MMboe (99.7% heavy crude oil). Increased Proved (1P) NPV10 BT reserve value to $309 million and volumes to 12.1 MMboe (99.7% heavy crude oil). Increased Proved plus Probable (2P) NPV10 BT reserve value to $395 million and volumes to 16.0 MMboe (99.3% heavy oil). (1) Non-IFRS financial measure that is not a standardized financial measure under International Financial Reporting Standards (\"IFRS\") and may not be comparable to similar financial measures disclosed by other issuers. Refer to \"Non-IFRS and Other Financial Measures\" section below. 2022 was a highly successful year for Hemisphere with record revenue of $97 million generating nearly 50% returns of $47 million in adjusted funds flow. Hemisphere reinvested $18 million to grow production by 55% to record levels, reduced net debt to $1 million, and returned $11 million to shareholders through a newly initiated high-...