Business & Finance
Business and Finance
Business and Finance
Wed, August 5, 2009
Tue, August 4, 2009 Hemisphere Energy Corporation: Hemisphere Energy Closes Acquisition of Natural Gas Producing Property at Sylvan Lake in Alberta
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 4, 2009) - Hemisphere Energy Corporation (TSX VENTURE:HME) is pleased to announce it has closed the acquisition of the natural gas producing Sylvan Lake property in central Alberta. The Sylvan Lake property consists of multi-well natural gas production from numerous channel sands of the Edmonton Group and provides Hemisphere Energy with stable reserves and additional low risk drilling locations.
Acquisition Highlights
The Sylvan Lake property has:
- Approximately 100 thousand-cubic-feet-per-day (Mcf/d) of natural gas production
- Approximately 205,000 Mcf of proven plus probable reserves (independently engineered, effective December 31, 2008)
- Identified low risk drilling locations
- Low operating costs
- Year round access
The acquisition metrics based on the purchase price of $325,000 are:
- $19,940 per barrel-of-oil-equivalent-per-day (boe/d)
- $9.51 per proved plus probable boe
The Sylvan Lake acquisition is aligned with Hemisphere Energy's strategy of purchasing and developing areas with multi-zone potential which provide medium to low risk drilling opportunities that increase Hemisphere Energy's production, reserves and cash flow.
The management and board of Hemisphere Energy view current market conditions as an excellent opportunity to aggressively pursue value-added acquisitions and the Company is evaluating other opportunities that also complement its producing properties at Trutch in northeast British Columbia and Sylvan Lake in Alberta.
Hemisphere Energy is committed to building a strong and successful oil and gas company through its experienced management and directors and continues to grow its cash flow, production and reserves, while maintaining low overhead.
Note: A boe means barrel-of-oil-equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
HEMISPHERE ENERGY CORPORATION
Don Simmons, President & CEO
Forward-looking Statements
This news release contains "forward-looking statements" that are based on Hemisphere's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding Hemisphere's outlook for our future operations, plans and timing for the commencement or advancement of exploration and development activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of Hemisphere. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by Hemisphere will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Hemisphere disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of factors beyond its control, and actual results may differ materially from the expected results.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
