Hemisphere Energy Corp. (TSXV: HME) said Oct. 16 that it has a letter of intent to buy oil and gas assets from an undisclosed intermediate Canadian producer in the Atlee Buffalo area of southeast Alberta for $3.35 million..
The acquisition gives Hemisphere stable, operated production of 60 barrels of oil equivalent per day (BOE/d) with 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.
Hemisphere Energy Corp. is an independent energy company engaged in the acquisition, exploration, development, and production of petroleum and natural gas interests in Canada. The company is headquartered in Vancouver, B.C.