Backgroud

Atlee Buffalo is located 25 kilometres northeast of Jenner. Jenner is located 100 kilometres northwest of Medicine Hat. Hemisphere made its first acquisition in the area in late 2013 and owns 7,360 gross acres (7,192 net acres) as of December 31, 2014.  The property has two oil pools delineated by vertical wells and 65 identified locations.  based on internal mapping, Atlee Buffalo has high original-oil-in-place and low current recovery factors.

Brief Introduction

Location of oil field: southeast Alberta

Distribution and area of oil field: 7,360 gross acres (7,192 net acres)

Reservoir information: F pool and G pool

Oil field reserves: F pool (31 MMbbl OOIP), G pool (40 MMbbl OOIP)

Oil recovery: F pool (5%), G pool (4%)

Current rights and interests

Hemisphere Energy: Operator with 100% interest

Expected workload

Atlee Buffalo is drilled 14 wells, expanded both F and G pool facilities to enhance water separation and increase oil production, grew fourth quarter production by 80% over that of 2017 and increased recognition of waterflood success by McDaniel resulted in 48% increase in Atlee Buffalo 2P Reserve bookings in 2018. Hemisphere Energy plan to drill up to 16 wells, continue to expand field-wide reservoir simulation studies and continue to optimize batteries and existing waterflood operations in 2019.