Business
Hemisphere Energy Reports 2021 Third Quarter Financial and Operating Results and Provides Update on Operations
Vancouver, British Columbia--(Newsfile Corp. - November 18, 2021) - Hemisphere Energy Corporat...
About this update from Hemisphere Energy Corp
[{"type":"text","content":"Hemisphere Energy Reports 2021 Third Quarter Financial and Operating Results and Provides Update on OperationsVancouver, British Columbia--(Newsfile Corp. - November 18, 2021) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (\"Hemisphere\" or the \"Company\") is pleased to provide an operations update and its financial and operating results for the third quarter ended September 30, 2021. Third Quarter 2021 Financial and Operating HighlightsDuring the third quarter, Hemisphere invested just over $3.3 million in its Atlee Buffalo field operations. The majority of capital expenditures included a successful three well drilling program in the Atlee G Pool. The Company also acquired a Free Water Knockout (FWKO) vessel in anticipation of production growth at the G pool facility during the fourth quarter.Hemisphere's new G pool wells are the first drilled by the Company since 2019 due to severe market volatility during 2020 and early 2021. After being brought online in late October, total oil production from the new wells has averaged approximately 300 bbl/d during the first two weeks of November. With the addition of these new wells and the continued success of Hemisphere's enhanced oil recovery projects, corporate production has increased to approximately 2,100 boe/d (99% heavy crude oil and 1% conventional natural gas), based on field estimates between November 1-15th. Hemisphere's third quarter also marked two very important milestones for the Company, in both its field operations and financial structure. At the start of the third quarter, the Company announced the implementation of its first polymer flood project in the Atlee G Pool in southeast Alberta. Reservoir simulation and analogue analysis indicate both increased production rates and higher recovery factors are predicted for the oil pool. Subsequent to that, the Company announced the replacement of its previous five-year term loan with a new $35 million extendible two-year committed term facility with ATB Financial in July. The new facility provides Hemisphere with increased financial flexibility, a significant reduction in interest costs, and lower foreign exchange risk. Further highlights of the third quarter include:Generated record revenue of $10.4 million, a 77% improvement over the third quarter of 2020.Maintained production at 1,671 boe/d (99% heavy crude o...