Hemisphere Energy Announces a 61% Increase in 2014 Reserves
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/11/15 -- Hemisphere Energy Corporation ("Hemisphere") (TSX VENTURE: HME) is pleased to announce highlights from its independent reserves evaluation as at December 31, 2014 in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
In 2014 Hemisphere completed its busiest development year to-date, drilling and placing on production 10 horizontal oil wells in Atlee Buffalo and 2 horizontal oil wells in Jenner. This activity resulted in a 61% growth in Proved plus Probable reserves and a 74% increase in Proved Developed Producing reserves. Despite the decrease in oil prices, Hemisphere achieved a substantial increase in the net present value of its reserves through its successful drilling programs. Atlee Buffalo, which was acquired in late 2013, contributed significant production and reserve growth during its first phase of development, setting up future growth opportunities in the area.
2014 Reserve Highlights
The reserves data set forth below is based upon an independent reserves evaluation prepared by McDaniel & Associates Consultants Ltd. ("McDaniel") with an effective date of December 31, 2014 (the "McDaniel Report"). The following presentation summarizes Hemisphere's crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for Hemisphere's reserves using forecast prices and costs based on the McDaniel Report. The McDaniel Report has been prepared in accordance with definitions, standards, and procedures contained in the Canadian Oil and Gas Evaluation Handbook and NI 51-101.
All evaluations and reviews of future net cash flows are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein. Reserves included herein are stated on a gross basis (working interest reserves before royalty deductions) unless otherwise noted. McDaniel pricing assumptions from their January 1, 2015 internal forecast are summarized below. All amounts are expressed in Canadian dollars unless otherwise noted. Due to rounding, certain columns may not add exactly.
Summary of Reserves(1)
Summary of Net Present Value(1)
Future Development Costs ("FDC")
The following summarizes the development costs deducted in the estimation of future net revenue attributable to Proved reserves and Proved plus Probable reserves (using forecast prices and costs only).
2014 Finding, Development and Acquisition ("FD&A") Costs(1)
Summary of McDaniel Pricing as of January 1, 2015
In addition to the information disclosed in this news release, more detailed information will be included in Hemisphere's 2014 Annual Information Form which will be available on SEDAR at and Hemisphere's website at by April 30, 2015.
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 drilling existing projects 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. These forward-looking statements include statements regarding Hemisphere's outlook for our future operations, plans and timing for the commencement or advancement of exploration and development activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of Hemisphere. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by Hemisphere will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Hemisphere disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
As defined in NI 51-101, proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
A barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Definitions and abbreviations
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.
Contacts:
Hemisphere Energy Corporation
Don Simmons
President & Chief Executive Officer
(604) 685-9255
Website:
Scott Koyich
Investor Relations
(403) 619-2200
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Datum: 11.03.2015 - 11:00 Uhr
Sprache: Deutsch
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Oil & Gas
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