Hemisphere Energy (TSX: V.HME, Stock Forum) celebrated today as it reported initial production results from the final three wells of its summer drilling program, record production rates and the commencement of a fall drilling program at Atlee Buffalo located in Alberta.
According to the news release, the company reached a record corporate production rate averaging 900 boepd (92% oil) during the first two weeks of September with each of the last three wells drilled off of the same pad at Atlee averaging over 100 boepd during the first two weeks of September.
The company also announced successfully wrapping up the first five-well drilling campaign in corporate history as it drilled, completed, equipped and brought on-stream five horizontal wells in Atlee Buffalo during an 11-week period.
Atlee Buffalo Glauconitic horizontal well economics continue to be robust with the company estimating an ultimate recovery of 100,000 boe per well. Having used an average drill, complete and tie-in cost of $1.5 million, the company estimates that the wells will have a nine-month payout period with a pre-tax $2.4 NPV at 10% discount with 175% rates of return.
As a result of the extremely encouraging initial results in Atlee Buffalo, the company has commenced a fall drill campaign which includes up to four additional horizontal Atlee wells and one vertical test well in Jenner.
Hemisphere Energy was in the news recently when the Vancouvert-based company announced the appointment of a COO and VP of Engineering almost two weeks ago.
Shares edged up 2.94% on the news to $0.70 per share.
Currently there are 75.1m outstanding shares with a market cap of $52.5 million.