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The Q3 results feature a production increase of 69 percent, as well as a revenue increase of 114 percent.
Hemisphere Energy Corporation (TSXV:HME) has released its financial and operating results for the three and nine month periods which ended September 30, 2018
The Q3 results feature a production increase of 69 percent, as well as a revenue increase of 114 percent.
As quoted from the press release:
Q3 2018 HIGHLIGHTS
Achieved record quarterly average production of 1150 boe/d (96 percent oil), a 69 percent increase over the third quarter of 2017.
Increased revenue by 114 percent to a record C$5.9 million, compared to C$2.7 million for the third quarter of 2017.
Generated operating field netback of C$3.2 million (C$0.04/share), an increase of 175 percent over the third quarter of 2017.
Generated funds flow from operations of C$1.4 million (C$0.02/share), an increase of 111 percent over the third quarter of 2017.
Increased operating netbacks, including losses on commodity contracts, to C$23.43/boe, an increase of 22 percent over the third quarter of 2017.
Completed successful eleven-well summer drilling program and finished battery upgrades at the Atlee Buffalo F pool facility.
Achieved a Corporate Liability Management Ratio (“LMR”) with the Alberta Energy Regulator (“AER”) of 7.05 at the end of the third quarter 2018, which is within the top 12 percent of all licensees evaluated.CORPORATE UPDATE
Since securing a five year term loan in September 2017, Hemisphere has drilled 20 new wells in the Atlee Buffalo area including 14 wells drilled in 2018. Of these, five wells have been converted to water injectors, and are either now injecting or have recently obtained injection approval from the AER. Based on field estimates, production over the first half of November was approximately 1500 boe/d (97 percent oil), which is more than double the production as compared to Hemisphere’s average daily production during the third quarter of 2017.
With the price of Canadian crude oil dropping dramatically in recent weeks, Hemisphere is heavily focused on reducing operating costs, including those associated with optimization projects that could increase production further. Hemisphere will instead focus in the near-term on augmenting water injection in order to continue to re-energize the reservoirs and minimizing costs associated with winter weather conditions.