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Hemisphere Details IP30 from Latest Mannville Well; Cuts Costs 45%

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   |    Monday,September 12,2016

Hemisphere Energy Corporation's latest well from its Atlee Buffalo Upper Mannville G pool 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.

Total costs to drill, complete, equip and tie-in the well are estimated to be $685,000 , which is 10% under budget and 45% less than the average cost of the 10 Atlee Buffalo wells drilled by Hemisphere in 2014.

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.

Water Facility Being Built

A water handling facility is currently being built by Hemisphere in Atlee Buffalo with expected completion by the end of September. These additional facilities will lead to decreased transportation and operating costs in the area due to the reduction of third party processing, trucking, and water disposal fees. Once operational, the Company plans to increase injection rates at all of its water injector wells, which will allow for additional cycling of water in order to re-energize the reservoir more rapidly and ultimately generate higher oil production and increased oil recovery.

Hemisphere's corporate production in the first week of September was approximately 600 boe/d (90% oil), which represents a greater than 20% growth rate since the second quarter of 2016. This is a result of increased production from the Atlee Buffalo Upper Mannville F pool waterflood and the new well in the Upper Mannville G pool. The Company is monitoring the price of oil closely and plans to bring additional shut-in production back on in the coming weeks.