TSX-V: HME
VANCOUVER, Sept. 21, 2017 /CNW/ - Hemisphere Energy
Corporation (TSX-V: HME) ("Hemisphere" or the "Company") is pleased
to announce that it has initiated its fall development program and
has granted incentive stock options.
Development Program
Hemisphere has commenced its previously announced drilling
program consisting of seven wells in the Atlee Buffalo area of
southeast Alberta (news release
dated September 15, 2017). Of
these seven horizontal development wells, drilling plans include
three producing wells into the Upper Mannville F pool, three
producing wells into the Upper Mannville G pool, and one injector
well into the Upper Mannville G pool. Results will be
announced as they become available.
As part of the development program the Company plans to expand
its facility at the F pool and construct a new water separation and
re-injection facility in the G pool. The expansion of the F pool
facility will offer Hemisphere the ability to optimize current
producing wells and provide additional capacity for continued
drilling. The new G pool facility will allow the Company to handle
production from new wells and to tie-in and turn up its first G
pool well producer, which was drilled in the summer of 2016 and has
been producing at a limited capacity to tanks.
Overall production from Atlee Buffalo has continued to improve
through 2017 and additional information collected from this
drilling program will help to expand and improve the Company's
reservoir model, which will be used to define an aggressive 2018
drilling program.
"This level of capital expenditure and number of drilling
locations represents the largest development program Hemisphere has
completed since 2014," said Don
Simmons, President and Chief Executive Officer. "It
characterizes a major shift from a period of capital conservation
to substantial growth for the Company."
Stock Option Grant
The Company has granted incentive stock options to officers,
directors, employees, and consultants of the Company, and a company
performing investor relations services entitling them to purchase
up to a total of 5,034,000 common shares at an exercise price of
$0.25 each, pursuant to the Company's
Stock Option Plan. The stock options are exercisable for a
term of five years with one-third vesting on the grant date,
one-third vesting on the first anniversary of the grant date, and
one-third vesting on the second anniversary of the grant date.
About Hemisphere Energy Corporation
Hemisphere Energy Corporation is a producing oil and gas company
focused on developing conventional oil assets with low risk
drilling opportunities. Hemisphere plans continual growth in
production, reserves, and cash flow by focusing on existing assets
with significant growth potential and executing strategic
acquisitions. Hemisphere trades on the TSX Venture Exchange
as a Tier 1 issuer under the symbol "HME".
Forward-looking Statements
This news release
contains "forward-looking statements" that are based on
Hemisphere's current expectations, estimates, forecasts and
projections. The words "estimates", "projects", "expects",
"intends", "believes", "plans", or their negatives or other
comparable words and phrases are intended to identify
forward-looking statements and include statements regarding
Hemisphere's plans for its fall development drilling program and
the timing thereof; the operational developments anticipated to
result from the planned drilling program and other expectations,
intentions, and plans that are not historical fact.
Forward‐looking statements are based on a number of material
factors, expectations, or assumptions of Hemisphere which have been
used to develop such statements and information but which may prove
to be incorrect. Although Hemisphere believes that the expectations
reflected in such forward‐looking statements or information are
reasonable, undue reliance should not be placed on forward‐looking
statements because Hemisphere can give no assurance that such
expectations will prove to be correct. In addition to other factors
and assumptions which may be identified herein, assumptions have
been made regarding, among other things: that Hemisphere will
continue to conduct its operations in a manner consistent with past
operations; results from drilling and development activities are
consistent with past operations; the quality of the reservoirs in
which Hemisphere operates and continued performance from existing
wells; the continued and timely development of infrastructure in
areas of new production; the accuracy of the estimates of
Hemisphere's reserve volumes; certain commodity price and other
cost assumptions; continued availability of debt and equity
financing and cash flow to fund Hemisphere's current and future
plans and expenditures; the impact of increasing competition; the
general stability of the economic and political environment in
which Hemisphere operates; the general continuance of current
industry conditions; the timely receipt of any required regulatory
approvals; the ability of Hemisphere to obtain qualified staff,
equipment and services in a timely and cost efficient manner;
drilling results; the ability of the operator of the projects in
which Hemisphere has an interest in to operate the field in a safe,
efficient and effective manner; field production rates and decline
rates; the ability to replace and expand oil and natural gas
reserves through acquisition, development and exploration; the
timing and cost of pipeline, storage and facility construction and
expansion and the ability of Hemisphere to secure adequate product
transportation; future commodity prices; currency, exchange and
interest rates; regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which Hemisphere
operates; and the ability of Hemisphere to successfully market its
oil and natural gas products.
The forward‐looking information and statements included in
this news release are not guarantees of future performance and
should not be unduly relied upon. Such information and statements,
including the assumptions made in respect thereof, involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to defer materially from those anticipated
in such forward‐looking information or statements including,
without limitation: changes in commodity prices; changes in the
demand for or supply of Hemisphere's products, the early stage of
development of some of the evaluated areas and zones; unanticipated
operating results or production declines; changes in tax or
environmental laws, royalty rates or other regulatory matters;
changes in development plans of Hemisphere or by third party
operators of Hemisphere's properties, increased debt levels or debt
service requirements; inaccurate estimation of Hemisphere's oil and
gas reserve volumes; limited, unfavourable or a lack of access to
capital markets; increased costs; a lack of adequate
insurance coverage; the impact of competitors; and certain other
risks detailed from time‐to‐time in Hemisphere's public disclosure
documents, (including, without limitation, those risks identified
in this news release and in Hemisphere's Annual Information
Form).
The forward‐looking information and statements contained in
this news release speak only as of the date of this news release,
and Hemisphere does not assume any obligation to publicly update or
revise any of the included forward‐looking statements or
information, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities
laws.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Hemisphere Energy Corporation
