Since the third quarter of 2017, Hemisphere Energy Corp. (TSX-V:HME) has increased production by more than 100% from its oil assets in southeast Alberta. On Wednesday, the company provided the last details on operations, saying that production has reached record levels, giving shares an initial boost in morning trading.
The Vancouver-based company reported that, based on field estimates, production has averaged about 1,510 barrels of oil equivalent per day (boepd) (~97% oil) during the week of September 15-21, 2018.
Comparatively, during the third quarter last year, production was in the area of 650 boepd.
Management added that the latest production estimate does not include the last two wells drilled during an 11-well drill program completed this summer. These wells are expected to be online within the next week to further bolster aggregate corporate output.
In other developments, Hemisphere forecasts that expansion at its Upper Mannville G pool facility will be completed by month's end. Start-up of the new SKUD and oil treater is expected during the first week of October.
With optimization of the facility, Hemisphere predicts production to continue to increase from both is Atlee Buffalo pools throughout the remainder of the year.
Proved and probable reserves at the company's 100% owned property stood at 7.2 million barrels of oil equivalent per a estimate in March.
Shares of HME gapped up to 24.5 cents in the first trade this morning, but have since slipped back to Tuesday's closing price at 23 cents. Based upon 89.8 million shares outstanding, that equates to a market capitalization of just $20.65 million for Hemisphere.
