Hemisphere Energy proves path to 38 million BOE at Atlee Buffalo, Alberta
Hemisphere Energy Corporation (TSXV: HME) reported in November that its summer Atlee Buffalo development well, which has now been on production for over 90 days has been producing steadily over 60 BOE per day.
This is an excellent development for Hemisphere, which has been looking to demonstrate horizontal well drilling combined with waterflooding as a means to unlock an expected 30% of the 65 million barrels of oil from the Atlee Buffalo F and G reservoirs (38 million) that historically only yielded less than 4% recovery rates.
Hemisphere’s demonstration horizontal well into the Atlee Buffalo Upper Mannville G pool, drilled in July 2016, has averaged just over 60 BOE/day (100% oil) over its first three months online and has produced over 70 BOE/day (100% oil) during the first half of November, showing that the Hemisphere has locked into a successful approach.
Delineated in the 1970s and the 1980s the Atlee Buffalo properties in southern Alberta were proved by vertical wells in the 1970’s and 1980’s but past efforts at recovering from the reservoirs have failed, with less than 4% recovery from the 66 million BOE from the Mannville F and G pools.
But Hemisphere has proven that its new approach to develop the Atlee Buffalo oil fields is successful.
Critical for investors to understand is that the new well continues to show stable production rates, and management expects it to be capable of greater production in the future once a planned multi-well battery is constructed in conjunction with further development of the pool. All oil production is currently being trucked directly to sales, eliminating the need for any third party processing.
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For Hemisphere the new well adds 60 BOE/day to the 600 BOE/day (90% oil), which is a greater than 20% growth rate since the second quarter of 2016.
In the oil industry, waterflooding or water injection is the injection into the oil field, usually to increase pressure and thereby stimulate production. Water injection wells can be found both on and offshore, to increase oil recovery from an existing reservoir.
Water is injected to support pressure of the reservoir, and also to sweep or displace oil from the reservoir, and push it towards a well. Waterflooding began accidentally in Pithole, Pennsylvania and by 1865 became common in Pennsylvania by the 1880s.
Normally only 30% of the oil in a reservoir can be extracted, but water injection increases that percentage (known as the recovery factor) and maintains the production rate of a reservoir over a longer period.
The Atlee Buffalo project is located 25 kilometers northeast of Jenner in Alberta. The area is sparsely populated and almost desertic except for scant forage, cattle, rattlesnakes and pronghorns.
Do not blink on your drive through Jenner.
Starting in 2013, Hemisphere made its first acquisition in the area in late 2013 and owns 7,360 gross acres (7,192 net acres) as of December 31, 2014. The property has two oil pools surveyed by vertical wells and 65 identified locations.
With Atlee Buffalo Upper Mannville F and G pools Hemisphere has 2 core properties with a net aggregated surface area of 31,000 acres to which it owns 100% of the working interests. Well depth is a 900-1000 m. The current results demonstrate these wells do not require fracking to develop.
Some 40 kilometers to the south west of Atlee Buffalo is the famous Dinosaur Provincial Park and the badlands, the source of the bulk of our knowledge about dinosaurs.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>