February 2017
Corporate Summary Capital Structure TSX Venture HME Common Shares Outstanding 85.7 MM Share Price (Feb 10, 2017) $0.30 Fully Diluted Shares Outstanding 90.1 MM 52 Week High / Low $0.305 / $0.07 Insider Ownership (fully diluted) 13% Financial Highlights Operational Highlights Market Capitalization (Feb 10, 2017) $25.7 MM Average Production (Q4 estimate) 585 boe/d (86% oil) Enterprise Value (Feb 10, 2017) $37.3 MM Proved + Probable Reserves (Dec. 31, 2016)** 4.6 MMboe Net Present Value (10% discount, BT)** Net Debt* (Dec 31, 2016) $11.6 MM Proved + Probable $65.9 MM Tax Pools ~$47.0 MM Proved $45.7 MM Estimated Net Asset Value*** Proved Developed Producing $30.0 MM Proved + Probable $0.67/sh Undeveloped Land base (net) ~46,000 acres Liability Management Rating (LMR Feb 2017) 4.53 * See Advisory Statements under Non-IFRS Measures and Preliminary Unaudited Results.. ** Reserve volumes and net present values are as attributed by McDaniel & Associates Consultants Ltd. ("McDaniel") in the reserve report of McDaniel dated Feb 10, 2017 and effective as of December 31, 2016 ("McDaniel Reserve Report"). See Advisory Statements – Oil and Gas Information – Net Present Values. *** Based on McDaniel Reserve Report and interval evaluation by management of land and seismic with an average value of $50 per acre for undeveloped net acres, $0.55 MM for seismic, unaudited year end net debt of $11.6MM, and 85.7 MM 2 outstanding shares, all as of Dec. 31, 2016.
2016 Highlights Drilled and placed on production Hemisphere’s first Atlee G Pool well Production stable over first 6 months at ~60 bbl/d (100% oil) flat Added Facilities to Atlee F Pool for water handling and reinjection Proved viability of waterflood concepts in both Atlee Buffalo pools Achieved significant reserve growth despite limited total capital expenditures of $2.4MM, including just one well drilled Added 823 Mboe of Proved plus Probable reserves, replacing 427% of estimated 2016 production at an F&D cost of $7.49/boe, including changes in FDC* Added 549 Mboe of Proved reserves, replacing 285% of estimated 2016 production at an F&D cost of $8.96/boe, including changes in FDC* Achieved a 2 year average F&D of $2.45/boe on a Proved plus Probable basis and $3.86/boe on a Proved basis, including changes in FDC*, for recycle ratios** of 6.7 and 4.2 respectively * Based on estimated 2016 production of 526 boe /d, 2016 changes in Future Development Capital (“FDC”) of $2.5MM (Proved) and $3.8MM (Proved plus Probable), and 2 year (2015-16) changes in FDC of $0.3M (Proved) and -$1MM (Proved plus Probable). ** Recycle ratio is calculated as operating netback divided by Finding and Development (“F&D”) cost for the applicable 3 period. Operating netback is based on unaudited 2 year (2015-16) netback of $16.32/boe.
Reserves Reserves* Net Present Value* (10% discount, before tax) 5.0 $70.0 $1.25 $60.0 2P $1.02 4.0 $1.00 2P $20.2 2P 1.4 $50.0 $22.2 2P 2P 3.3 1.1 $0.77 2P $0.75 Per share (basic) 3.0 2P $40.0 $14.1 $0.71 MMboe MM$ 1.1 $0.64 2P 2P $30.0 $13.5 2.1 2.0 $0.50 2P 1P 1P 0.8 1P 1P $45.7 3.1 $20.0 1P $40.3 2.8 1P $34.3 1.0 2.2 1P $0.25 1P $24.6 $10.0 1.3 0.0 ** ** $0.0 $0.00 Dec 31 2013 Dec 31 2014 Dec 31 2015 Dec 31 2016 Dec 31 2013 Dec 31 2014 Dec 31 2015 Dec 31 2016 * Reserve volumes and net present values are as attributed in each of the independent reserve reports prepared for 4 Hemisphere effective as of the end of the financial year noted above.
Simple Story: Breathing new life into old pools … EXPERIENCE GROWTH CORPORATE GOALS 200+ Horizontal Wells Increase Production Successful Track Record Add Reserves Established Operator Per Share Growth Enhanced Oil Recovery STRATEGY Development Drilling Waterflood Conventional Oil Strategic Acquisitions Large OOIP Pools Increase Recovery Factors ECONOMIC METRICS Low Cost Operations Quick Payouts FOCUS High Rates of Return 5
Southern Alberta Paleo-High CNRL JOURNEY SASKATCHEWAN HEMISPHERE ALBERTA Atlee Buffalo Jenner ENERPLUS CENOVUS IMAGINEA HME Land HME Wells Brooks SASKATCHEWAN ALBERTA CNRL Barrier Beach CENOVUS System Paleo-High Calgary CARDINAL HARVEST 6
Focus: Southeast Alberta 2 core properties ~31,000 net acres ~100% Working Interest Mannville and Pekisko oil Depth of 900-1,000 m Conventional Hz wells No fracs required JENNER ATLEE Alberta BUFFALO HME Land Suffield Military Base 7
Recommend
More recommend
