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Hemisphere Energy Grows Proved Reserve Value to $325 Million and Proved Net Asset Value to $3.18 per Fully Diluted Share
Vancouver, British Columbia--(Newsfile Corp. - March 12, 2024) - Hemisphere Energy Corporation (...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Grows Proved Reserve Value to $325 Million and Proved Net Asset Value to $3.18 per Fully Diluted ShareVancouver, British Columbia--(Newsfile Corp. - March 12, 2024) - 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, 2023. In 2023, Hemisphere invested $16 million to drill eight successful Atlee Buffalo wells, upgrade facilities in Atlee Buffalo, purchase land and seismic, and pre-purchase some of the materials for its 2024 development program. With the Company's capital additions, corporate production in 2023 increased by more than 10% year-over-year, to 3,124 boe/d (99% heavy oil). Production is currently trending over 3,450 boe/d (99% heavy oil, based on field estimates between February 10 - March 10, 2024), after significant downtime experienced in January and early February due to extreme cold weather and equipment failure. During the year, Hemisphere also distributed $13.1 million in base and special dividends, purchased 3.2 million shares under its normal course issuer bid (\"NCIB\") for a total price of $4.0 million (at an average price of $1.25/share), and exited the year in a cash position with working capital1 of over $3 million.The Company's continued success in the development of its enhanced oil recovery projects was recognized again by McDaniel in the Reserve Report. In the Proved Developed Producing (\"PDP\") category, Hemisphere replaced 104% of 2023 production and increased reserve value by 9% to $248 million NPV10 BT. Hemisphere also grew Proved (\"1P\") reserve value to $325 million NPV10 BT and Proved plus Probable (\"2P\") reserve value to $416 million NPV10 BT. The Company's new Saskatchewan lands currently account for only 5% of 1P and 7% of 2P reserves, while making up only 3% of 1P and 5% of 2P NPV10 BT valuations of Hemisphere's reserves. Significant reserve upside remains on Hemisphere lands if the play proves successful over the course of 2024 and beyond.Consistent with McDaniel's 2022 year-end evaluation, the Reserve Report incorporates full corporate abandonment, decommissioning, and reclamation costs (\"ADR\") in the PDP category. Hemisph...