Business
Hemisphere Energy Announces Financial and Operating Results for Q3 2020
Vancouver, British Columbia--(Newsfile Corp. - November 19, 2020) -  Hemisphere Energy Co...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Announces Financial and Operating Results for Q3 2020Vancouver, British Columbia--(Newsfile Corp. - November 19, 2020) -  Hemisphere Energy Corporation (TSXV: HME) (\"Hemisphere\" or the \"Company\") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2020. Q3 2020 HighlightsAchieved revenue of $5.9 million.Realized an operating netback of $4.7 million, including hedging gains of $0.9 million.Attained quarterly adjusted funds flow from operations of $3.4 million or $0.04 per share (basic).Maintained average quarterly production at 1,686 boe/d (99% heavy crude oil).Reduced operating and transportation expenses to $9.31/boe, a 21% decrease from the third quarter of 2019.Achieved an operating netback of $30.41/boe, including a $5.51/boe hedging gain.Lowered net debt to $27.4 million, an 11% decrease from the end of the second quarter 2020.Corporate Liability Management Ratio (LMR) with the Alberta Energy Regulator was 12.23 as of the end of the third quarter of 2020.Corporate UpdateHemisphere had a very successful third quarter with oil prices recovering significantly from those seen during the second quarter. Combined with flat production and considerable reductions in operating costs, the Company attained adjusted funds flow from operations (\"funds flow\") of $3.4 million ($0.04 per basic share). With minimal capital expenditures, Hemisphere was able to focus on debt reduction. As a result, net debt was lowered to $27.4 million by the end of the third quarter, yielding an annualized net debt to funds flow ratio of 2.0. Hemisphere's production averaged 1,686 boe/d (99% heavy crude oil) through the third quarter of 2020, up slightly by 2.5% over the second quarter. The Company has already converted one of its Atlee Buffalo G pool wells to an injector, and plans to convert three more wells in the pool to injectors over the next few months to further optimize waterflood performance. Emphasis continues to be placed on production efficiencies, which has resulted in a 21% reduction in operating and transportation costs as compared to the third quarter of 2019. Hemisphere has focused heavily on debt repayment over the past year, and has lowered its net debt position by $8.6 million, or 24% as compared to the third quarter of 2019. Overcoming unprecedented ch...