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Hemisphere Energy Announces Proved Reserves of $317 Million with Proved Net Asset Value of $3.21 per Fully Diluted Share
Vancouver, British Columbia--(Newsfile Corp. - March 19, 2025) - Hemisphere Energy Corporation (...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Announces Proved Reserves of $317 Million with Proved Net Asset Value of $3.21 per Fully Diluted ShareVancouver, British Columbia--(Newsfile Corp. - March 19, 2025) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (\"Hemisphere\" or the \"Company\") is pleased to announce highlights from its independent reserves evaluation (the \"Reserve Report\"), prepared by McDaniel & Associates Consultants Ltd. (\"McDaniel\") and effective as at December 31, 2024. Hemisphere's estimated 2024 capital expenditures1 of approximately $22 million grew year-end Proved Developed Producing (\"PDP\") reserves by 13%, increased annual production by 10%, added required infrastructure, and commenced testing a new resource play in Saskatchewan with an enhanced oil recovery (\"EOR\") polymer pilot project. These investments were funded entirely by cash flow from the Company's long-life reserve base and ultra-low production decline rates in the Atlee Buffalo oil assets. Hemisphere's current quarterly production is trending at 3,800 boe/d (99% heavy oil and based on field estimates between January 1 - March 15, 2025).During the year, Hemisphere also distributed over $21 million in shareholder returns, made up of $15.7 million in base and special dividends and $5.5 million of share purchases under its normal course issuer bid (\"NCIB\"). The Company exited the year in a cash position with estimated working capital1 of over $5 million. The Company's continued success in the development of its EOR projects was recognized again by McDaniel in the Reserve Report. In the PDP category, Hemisphere replaced 186% of 2024 production and increased reserve value by 10% to $273 million NPV10 BT. In addition, Hemisphere's Proved (\"1P\") reserve value at year-end was $317 million NPV10 BT and Proved plus Probable (\"2P\") reserve value was $393 million NPV10 BT. The Company's new Saskatchewan lands currently account for only 3% of 1P and 6% of 2P reserves, while making up only 3% of 1P and 5% of 2P NPV10 BT valuations of Hemisphere's reserves. Significant potential reserve upside remains on Hemisphere lands if the play proves successful over the course of 2025 and beyond.Consistent with McDaniel's 2023 year-end evaluation, the Reserve Report incorporates full corporate abandonment, decommissioning, and reclamation costs (\"ADR\") in the PDP...