The Hemisphere Snapshot Financial Highlights* Q3 2017 Market Information Revenue 2.7 MM TSX Venture HME Netback 1.2 MM Share Price 0.31 Funds Flow 0.7 MM Net Debt 14.4 MM 52 Week Range 0.13 - 0.36 Term Loan 11.6 MM Basic…
The Growth During a Downturn Reserves* Net Present Value* (10% discount, before tax) 5.0 70.0 1.25 60.0 1.02 4.0 20.2 1.00 1.4 22.2 50.0 1.1 0.77 Per share (basic) 3.0 0.75 40.0 14.1 1.1 Million MMboe…
The Exciting Story 9 Assets for growth Have spent the last 3 years testing and proving up horizontal drilling and waterflood in the Atlee Buffalo assets which are estimated to hold 66 MMBbl oil-in-place with only 4% recovered…
The Southern Alberta Focus Journey SASKATCHEWAN ALBERTA HEMISPHERE CNRL Cenovus Cor4 SASKATCHEWAN ALBERTA Cenovus Harvest Calgary Cardinal HME Land HME Wells 5
The Attractive Assets Southern Alberta 100% Working Interest 28,000 undeveloped net acres Mannville & Pekisko oil 900 - 1,000 m deep Conventional horizontal wells No fracs required HME Land Suffield Military Base 6
Jenner: The Stable Cash Flow o 100% average working interest o 100% operator of production o 24,000 net acres of land o 8 oil pools defined by 3D seismic o 30 drilling locations identified* S o 9 booked locations* o Operated oil…
Atlee Buffalo: The Growth Opportunity o Two oil pools delineated by vertical wells from the 1970s & 80s with excellent geological and seismic control HME Land HME Hz Wells o 100% working interest in both pools with HME Hz Injectors…
Atlee Buffalo: The Development Plan 2017 Program o Drilled 6 development wells o Expanding F pool facility to enhance water separation and increase oil production o Constructing a new water separation and re-injection facility at the…
Atlee Buffalo: The Waterflood Analogues Oil Recovery Current Producing Mannville Pools OOIP* API Waterflood to-date Rate Wells Name MMbbl Degree MMbbl RF Type Start Date Boe/d o Analogue - Upper Mann YYY 15.8* 13 3.6 23% Water-ASP…
Atlee Buffalo: The Reserve Upside Potential 2P Booked Potential Additional Cumulative Reserves as of (Unbooked) Reserves Pool OOIP* Production to-date Dec. 31, 2016 At Various RF*** (MMBbl) (MMBbl) (MMBbl) (MMBbl) 15% 25% 35% Upper…
The Enticing Well Economics Capital Drill, Complete, Estimated Southern Alberta Equip & Tie-in Ultimate Capital Mannville Pools (DCET) Recovery* IP* Payout** NPV10** ROR** Efficiency** Area MM Mbbl Bbl/d Years MM % /bbl/d Jenner…
The Funded Growth Plan The Goal* Organic growth to 3,000+ bbl/d The Plan Annual funds flow Fast Payout Projects growth to 30MM Development Drilling within 3 years The Foundation Waterfloods Facilities Expansion 2 Core Assets…
The Growth Model: US50 flat WTI o Full-scale Atlee Buffalo development* has the potential to bring corporate production to 3,000 bbl/d and annual EBITDA to 30 MM within 3 years o Assumptions** include IP rates of 60 bbl/d per well with…
The Upside Model: US50/55/60 WTI o Using the same development plan, only a small increase in pricing is required to eliminate debt by Q3 2020 with annual EBITDA of 40 MM o Assumptions** include IP rates of 60 bbl/d per well with 12%…
The Hemisphere Invetment o High rate of return projects with production and reserve growth through strategic low risk, low capital expenditure and fast payout projects o Own and acquire known conventional oil pools with large OOIP o…
Appendices 17
The Driven Leadership Management Don Simmons, P.Geol. President & Chief Executive Officer Over 17 years of experience technical, operational and management experience (AEC, Encana, Sebring) Board of Directors Ian Duncan, P.Eng.…
The Quarterly Highlights Financial Three Months Ended Operating Three Months Ended September 30 September 30 Petroleum and natural gas revenue 2,733,656 Average daily production Operating netback (1) 1,208,106 Oil (bbl/d) 644 Funds…
The Hedging Program o Hedging Program protects against price volatility and supports capital growth plan while ensuring debt repayment o Approximately 55% of currently booked Proved Developed Producing volumes(1) hedged for a 3 year…
Don Simmons, President & CEO Telephone: 604.685.9255 Email: simmonshemisphereenergy.ca Scott Koyich, Investor Relations Telephone: 403.619.2200 Email: scottbriscocapital.com