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Hemisphere Energy Grows PDP Reserve Value by 69% to $116 Million (Discounted at 10%), and Increases 2P Reserve Value by 18% to $235 Million (Discounted at 10%)
Vancouver, British Columbia--(Newsfile Corp. - March 26, 2020) - Hemisphere Energy Corporati...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Grows PDP Reserve Value by 69% to $116 Million (Discounted at 10%), and Increases 2P Reserve Value by 18% to $235 Million (Discounted at 10%)Vancouver, British Columbia--(Newsfile Corp. - March 26, 2020) - Hemisphere Energy Corporation (TSXV: HME) (\"Hemisphere\" or the \"Company\") is pleased to announce highlights from its independent reserves evaluation effective as at December 31, 2019 prepared by McDaniel & Associates Consultants Ltd. (\"McDaniel\"). Following the discussion on reserves, Hemisphere has included an update to its corporate outlook and 2020 capital plans. During 2019 Hemisphere incurred capital expenditures of approximately $11 million, which included capital to drill 11 producing wells in the Upper Mannville G pool. This activity resulted in a Proved Developed Producing (\"PDP\") reserve valuation of $115.7 million (net present value of future net revenue, discounted at 10%, before tax (\"NPV10 BT\")), representing a 69% increase when compared to year-end 2018. Production growth of 50% was also attained year over year to an average of approximately 1,665 boe/d (97% heavy crude oil and 3% conventional natural gas). As a result of changes in guidance in the Canadian Oil and Gas Handbook (\"COGEH\"), the value associated with the 2019 year-end reserves now includes 100% of Hemisphere's corporate abandonment, decommissioning, and reclamation estimates (\"ADR\"), including all the ADR associated with both active and inactive wells regardless of whether such wells had any attributed reserves. Despite this change, Hemisphere experienced significant reserve and valuation growth year over year in all categories, as compared below. 2019 Reserve Highlights Proved (\"1P\") Reserves Increased NPV10 BT by 39% to $198.2 million. Increased reserve volumes by 30% to 9.9 Mboe (98% heavy crude oil and 2% conventional natural gas). Replaced 478% of estimated 2019 production through organic development. Achieved a two-year average Finding & Development Cost (\"F&D cost\") of $5.80/boe (including changes in Future Development Capital (\"FDC\")) for a recycle ratio of 4.3. Increased NPV10 BT per basic share by 41% to $2.23. Improved Net Asset Value (\"NAV\") by 54% to $1.56 per fully diluted share, including valuation of undeveloped land and seismic, corporate ADR, and proceeds of options and warrants....