Hemisphere Energy Corporation commenced drilling operations Monday on a horizontal well in the Jenner area of southeast Alberta.
The well is targeting oil-bearing sandstones of the Glauconitic formation and once completed will fulfill the commitment obligations of the farm-in agreement announced on January 25, 2012.
Under the terms of the agreement, Hemisphere will pay 100 percent of the drilling, completion and tie-in costs of a horizontal well to earn 100 percent of the earned lands before payout, subject to a convertible overriding royalty.
Hemisphere will have an option of drilling a second well to earn additional lands once the commitment well obligations are satisfied.
Hemisphere Energy is focused on adding value per share by increasing production, reserves and cash flow through identifying and developing low to medium risk drilling opportunities and executing on strategic acquisitions and farm-ins.
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