Hemisphere Energy Corp.

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

Purchased oil and gas assets from an intermediate Canadian producer in the Atlee Buffalo area of southeast Alberta.

Hemisphere Energy Corp. (TSX VENTURE:HME) said Oct. 16 that it has a letter of intent to buy oil and gas assets from an intermediate Canadian producer in the Atlee Buffalo area of southeast Alberta for $3.35 million..

The seller was undisclosed.

The acquisition gives Hemisphere stable, operated production of approximately 60 barrels of oil equivalent per day (BOE/d) (75% oil).

The company will have 100% working interest in 8.25 contiguous sections spanning two large Glauconitic oil pools. Estimated original oil in place is up to 49 million barrels based on Hemisphere's internal mapping of the acquisition lands with a current recovery factor at only 4%

The transaction has an effective date of June 1, and is expected to close by mid-November. The acquisition will be funded by Hemisphere's existing revolving credit facility, which will be increased to $10.5 million upon closing.