Hemisphere Energy Corporation announced its expanded capital expenditure plans for the remainder of 2014 as a result of the recently closed USD 10M financing.
Hemisphere plans to drill up to 10 additional wells in the remainder of 2014, bringing the total number of wells for the year up to 13. The company will also optimise workover and recomplete a number of existing wells, acquire 3D seismic to assist in defining future drilling locations, and continue to build its land holdings with growth potential.
With the positive results of Hemisphere’s first Atlee Buffalo horizontal well achieving a 90-day production rate of approximately 90 boe/d (93% oil), the company plans to focus on further development in the Atlee Buffalo area. Hemisphere anticipates a five-well summer drilling programme to commence in the first week of June. Another five wells are scheduled as part of a follow-up fall drilling program.
The increase in the 2014 capital budget is mainly devoted to additional drilling in order to add significant production, reserves and cash flow. The budget will be financed using cash flow from operations and the company’s existing credit facility of USD 10.5M, which is currently undrawn.