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Hemisphere Energy Grows Proved Reserve Value to $309 Million and Proved Net Asset Value to $2.92 per Fully Diluted Share
Vancouver, British Columbia--(Newsfile Corp. - February 16, 2023) - Hemisphere Energy Corporation...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Grows Proved Reserve Value to $309 Million and Proved Net Asset Value to $2.92 per Fully Diluted ShareVancouver, British Columbia--(Newsfile Corp. - February 16, 2023) - 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, 2022. In 2022, Hemisphere invested $18.4 million to drill 13 wells, implement a polymer-surfactant flood in the Upper Mannville F oil pool (\"F pool\"), upgrade facilities in Atlee Buffalo, purchase land and seismic, and pre-purchase some of the materials for its 2023 drilling program. With Hemisphere's capital additions, corporate production increased by approximately 55% year-over-year, from 1,820 boe/d in 2021 to 2,827 boe/d in 2022. Production has since grown further to just over 3,200 boe/d (99% heavy oil, based on field estimates between Jan 13th - Feb 13th 2023) with two additional wells that were placed on production in mid-January. Over the year, Hemisphere also reduced its year-end net debt1 by 93% to $1.2 million, distributed nearly $8 million in dividends, and purchased 2.3 million shares under its normal course issuer bid (\"NCIB\") for a total price of $3.4 million (at an average price of $1.47/share).Hemisphere's continued success in the development of its enhanced oil recovery projects was recognized by McDaniel in the Reserve Report. In the Proved Developed Producing (\"PDP\") category, Hemisphere replaced 188% of 2022 production and increased reserve value by 16% to $228 million NPV10 BT ($2.23 per basic share). Hemisphere also grew Proved (\"1P\") reserve value to $309 million NPV10 BT ($3.03 per basic share) and Proved plus Probable (\"2P\") reserve value to $395 million NPV10 BT ($3.88 per basic share).Consistent with the 2021 year-end evaluation, McDaniel's Reserve Report incorporates full corporate abandonment, decommissioning, and reclamation costs (\"ADR\") in the PDP category. Hemisphere has always been cautious of acquiring additional wellbore and facility liabilities. A direct result of this strategy is that Hemisphere's reserves retain more comparative value per barrel than companies with additional ADR liabilities that...