Hemisphere Energy’s field production up more than 40%
Ahead of its’ Second Quarter 2017 financial report, Hemisphere Energy Corporation (TSXV: HME) has just announced a production and operations update and the news is positive. Estimated field production for July was approximately 700 barrels of oil equivalent per day (boe/d), up nearly 20% from the First Quarter 2017 average of 584 boe/d, but up more than 40% over July 2016.
The company continues to focus on the core area in south east Alberta. Recall that the company has two properties – one at Atlee-Buffalo and a second at Jenner, just 25 kilometers southwest of Atlee-Buffalo. These 100%-owned properties are predominantly shallow, medium gravity oil with associated water production and are being developed with horizontal wells (no fracs required). Drilling locations are identified by 3D seismic and the oil pool production is supported by waterflooding the reservoir to maximize reserve recovery and maintain or grow oil production.
Through 2016, the company made significant expenditures on facilities for water handling and reinjection in addition to drilling new wells. In 2017, the company has focused on enhancing the waterflood projects in Atlee-Buffalo “F” pool to support field production.
Further potential production growth is anticipated in 2017 as a new facility is planned for the first well in the Atlee-Buffalo “G” pool, drilled in August 2016 but constrained by facility capacity. In addition, up to two further wells are planned for the Atlee-Buffalo area for the remainder of 2017 which should allow for additional new production. The company has a lot of room to grow production on both of their oil fields by drilling more new wells.
The company plans to release Second Quarter 2017 financial results on August 22, which should be similar to First Quarter 2017 results, but are expected to reflect the company’s good financial position and the continued work done by the company this year.