Hemisphere Energy Corporation (TSXV: HME | OTCQX: HMENF) has released an operations update covering activity at its Marsden, Saskatchewan and Atlee Buffalo, Alberta assets. The company reports two successful horizontal wells at Marsden producing approximately 100 bbl/d each, while continuing recovery efforts following a previously disclosed fire at its Atlee G pool battery in Alberta. September production is currently averaging approximately 1,000 boe/d, and the company anticipates a full return to normal operations in the first quarter of 2027. Investors may be watching the Atlee Buffalo restoration timeline closely given its material impact on overall output.

Key Points

  • Hemisphere Energy Corporation (TSXV: HME | OTCQX: HMENF) is a dividend-paying Canadian heavy oil producer operating in Saskatchewan and Alberta.
  • Two horizontal Colony Formation wells at Marsden are producing approximately 100 bbl/d each, prompting evaluation of further development in 2027.
  • Atlee Buffalo electrical repairs are expected to be complete by mid-October; partial G pool production may commence before the end of November.
  • Investors should watch for equipment procurement updates and the company's progress restoring production toward pre-fire levels.

Marsden Colony Formation Wells Deliver Encouraging Early Production Rates

Hemisphere Energy recently completed two horizontal wells targeting the Colony Formation in its Marsden, Saskatchewan area. The release states both wells have been on production for three weeks, each averaging approximately 100 bbl/d of 100% heavy oil based on field estimates from August 26 to September 15. The company notes these results are initial production rates and cautions they may not be indicative of long-term performance. With the positive early data in hand, Hemisphere says it will begin evaluating the Colony Formation for further development in 2027, signalling potential expansion of its Saskatchewan asset base.

Atlee Buffalo Fire Recovery: Electrical Work and Equipment Procurement Under Way

Following the previously announced fire at its Atlee G pool battery in Alberta, Hemisphere's immediate priority is repairing the damaged electrical system. The company states electrical work is underway and expected to be complete by mid-October. In parallel, Hemisphere has sourced one replacement treater and is advancing site engineering design. The company's combined total single-claim insurance coverage for an approved claim is $40 million, including six months of business interruption coverage following a 30-day waiting period. Further updates on the equipment replacement schedule are expected as procurement plans are finalised.

Current Production Running Near 1,000 boe/d With Phased G Pool Restart Targeted

The company discloses that September production is currently averaging approximately 1,000 boe/d, comprising 99% heavy oil, and management anticipates production will remain near this level until the G pool is brought back online. Subject to construction timing, partial production from the G pool may commence before the end of November. A full return to previous production levels will require additional equipment and time to restart polymer injection and ramp all wells to optimised rates. Hemisphere expects to fully restore normal operations during the first quarter of 2027.