Hemisphere Energy announces initial production results from new Atlee Development Well

Hemisphere Energy Corporation (TSX-V: HME) has announced results from its most recent development well from its Atlee Buffalo Upper Mannville G pool.
The project has been 10% under budget and cost 45% less than the average ten wells drilled by Hemisphere in 2014.
According to the press release:

Following the closing of a private placement with gross proceeds of $1.9 million, Hemisphere drilled its first horizontal development well into the Atlee Buffalo Upper Mannville G pool at the end of July. Total costs to drill, complete, equip and tie-in the well are estimated to be $685,000,
The well has now been on production for a month, with a 30 day average rate of approximately 60 bbl/d of oil. With stable production rates and fluid levels observed, Hemisphere has recently increased the pump speed, which has resulted in a production rate of over 70 bbl/d of oil in the last few days. Oil production from the well is being produced to tanks and trucked directly to sales.
This well is pivitol in proving the economic viability of the remaining reserves in this pool, which has to date produced only 3% of its estimated 38 MMbbl of original oil in place, as mapped by McDaniel & Associates Consultants Ltd., Hemisphere’s independent engineers. Recorded reservoir pressure after nine months of water injection was three times higher than before commencing the waterflood, which has resulted in above expected oil rates at this early stage of secondary recovery. Hemisphere will continue to monitor fluid levels and injection rates to further optimize production at this well.
“This well marks a key milestone in Hemisphere’s corporate history” said Don Simmons, President and Chief Executive Officer of Hemisphere Energy Corporation. “We continue to prove our reservoir and production concepts in Atlee Buffalo by drilling impactful horizontal wells and implementing effective waterflood projects. The team is excited to move forward towards full development and unlock the significant value of both the Atlee Buffalo F and G pools.”

Click here for the full press release.