Hemisphere Energy Closes Atle Buffalo Acquisition For $3.35 Million

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
CA$3.3MM
Description

Acquired oil and gas assets in the Atlee Buffalo area in SE Alberta.

Hemisphere Energy Corp. (TSXV: HME) closed its $3.35 million acquisition of oil and gas assets in the Atlee Buffalo area of southeast Alberta from an intermediate Canadian producer, the company announced Nov. 18.

The Atlee Buffalo acquisition provides Hemisphere with an opportunity to apply its technical experience and successful track record in drilling horizontal wells and implementing pressure maintenance programs to achieve higher recovery factors from existing oil pools. The transaction has an effective date of June 1, 2013.

Highlights of the Atlee Buffalo Acquisition:

  • 100% working interest in 8.25 contiguous sections covering two significant Glauconitic oil pools;
  • Located 25 kilometers east of Hemisphere's core Jenner oil producing property;
  • Estimated original oil in place of up to 49 million barrels based on Hemisphere's internal mapping of the acquired lands with a current recovery factor of only 4%;
  • Stable, operated production of 60 barrels of oil equivalent per day (BOE/d) with 75% oil;
  • Proved plus probable reserves of 224,000 BOE;
  • Net present value for proved plus probable reserves of $5.1 million, before tax and discounted at 10%;
  • Up to 75 horizontal drilling locations identified to develop the resource; and
  • Significant upside for future reserve additions through the implementation of water and/or polymer flood.

Hemisphere Energy Corp. is an independent energy company engaged in the acquisition, exploration, development, and production of petroleum and natural gas interests in Canada. The company is headquartered in Vancouver, B.C.