May 2016
Corporate Summary Capital Structure TSX Venture HME Common Shares Outstanding 75.9 MM Fully Diluted Shares Outstanding 80.9 MM Share Price (May 13, 2016) $0.18 Insider Ownership (fully diluted) 12% 52 Week High / Low $0.33 / $0.05 Market Capitalization (May. 13, 2016) $13.7 MM Financial Highlights Operational Highlights Year ended Dec. 31, 2015 Current Production (Apr. 2016) ~550 boe/d (Based on field estimates) Revenue $9.7 MM (86% oil) Proved + Probable Reserves (Dec. 31, 2015)** 3.9 MMboe Oil & Gas Netback* $5.3 MM PDP Reserve Value (10% discount, BT)** $24.9 MM Operating Netback* $18.83/boe Proved Reserve Value (10% discount, BT)** $34.3 MM Funds Flow from Operations* $3.2 MM $0.04/share P+P Reserve Value (10% discount, BT)** $48.4 MM Net Debt* $11.4 MM Land base (undeveloped) ~50,000 net acres Tax Pools ~$47.0 MM Liability Management Rating (LMR May. 2016) 4.33 * See non-IFRS measures in Advisory Statements. ** Reserve volumes and net present values are as attributed by McDaniel & Associates Consultants Ltd. ("McDaniel") in the reserve report of McDaniel dated March 1, 2016 and effective as of December 31, 2015 ("McDaniel Reserve Report"). See 2 Advisory Statements – Oil and Gas Information – Net Present Values.
2015 Highlights Year over year annual production growth of 14% to 776 boed (80% oil) $2.4 million development capital program focused on reserve additions Added 860 Mboe of Proved (1P) reserves Increased by 27% to 2,785 Mboe (95% oil) 304% replacement of estimated 2015 production $0.24/boe F&D cost (including changes in FDC)* Added 820 Mboe of Proved Developed Producing (PDP) reserves Increased by 49% to 1,632 Mboe (92% oil) Represents 73% of 1P reserve value (NPV10 BT) Added 858 Mboe of Proved plus Probable (2P) reserves Increased by 19% to 3,934 Mboe (95% oil) Estimated Net Asset Value** of $0.37/share (1P) and $0.56/share (2P) * See Advisory Statements – Oil and Gas Information – F&D ** Based on McDaniel Reserve Report, interval evaluation of undeveloped land and seismic ($5.4M), estimated audited year 3 end net debt ($11.4MM), and 75.8MM outstanding shares as of Dec. 31, 2015.
Creating Long-Term Shareholder Value EXPERIENCE FUTURE GROWTH Integrated Team CORPORATE GOALS 200+ Horizontal Wells Increase Production Successful Track Record Add Reserves Established Operator Per Share Growth Enhanced Oil Recovery STRATEGY Development Drilling FOCUS Targeted Exploration Strategic Acquisitions Conventional Oil Build Future Inventory Large OOIP Increase Recovery Factors ECONOMIC METRICS Low Cost Operations Quick Payouts Southern Alberta Assets High Rates of Return Flexible Balance Sheet 4
Hemisphere History 2012 2011 Raised $8.9M (Net of fees) Raised $2.8M (Net of fees) Acquired production, land and Acquired production and land facility in Jenner for $6M in Jenner for $1.1M Executed 2 farm-in Drilled first 3 oil wells in Agreements Jenner Drilled 8 oil wells in Jenner Avg. Prod 188 boed (78% oil) Avg. Prod 408 boed (93% oil) 2011 to 2015 Summary Capital Raised = $25MM Wells Drilled = 26 Prod Growth = 313% 2014 2015 2013 Raised $9.2M (Net of fees) Commenced 3 enhanced Raised $4.0M (Net of fees) oil recovery pilots in Atlee Acquired land in Atlee for Acquired production and Buffalo (waterfloods) $0.6M land in Atlee for $3.4M Acquired land in Atlee Drilled 3 oil wells in Jenner Drilled 2 oil wells in Jenner Buffalo for $0.250M and 10 oil wells in Atlee Avg. Prod 463 boed (83% oil) Avg. Prod 776 boed (79% oil) Avg. Prod 683 boed (86% oil) 5
Reserves Reserves Net Present Value (10% discount, before tax) $70.0 $1.00 5.0 $60.0 $0.83 4.0 $0.75 2P $50.0 2P $62.5 3.9 $0.64 $0.62 Per share (basic) 2P 3.0 $40.0 $48.4 2P $MM MMboe 3.3 $0.50 $0.49 2P $30.0 $38.2 2.0 $0.37 2P 2P 2.1 1P 1P $26.5 $20.0 $40.3 1P 2.8 $0.25 1P 2P 2P $34.3 1.0 2.2 1.3 $18.7 1P 2P 1P $24.6 1P $10.0 1.3 0.8 $18.0 1P 1P 1P 0.8 $10.9 0.4 0.0 $0.0 $0.00 * * 29-Feb-12 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 29-Feb-12 * 31-Dec-12 * 31-Dec-13 31-Dec-14 31-Dec-15 * Hemisphere changed its year-end from February 29 to December 31. ** Reserve volumes and net present values are as attributed in each of the independent reserve reports prepared for Hemisphere effective as of the end of the financial year noted above. 6
Southern Alberta & Saskatchewan NORTHERN BLIZZARD ROCK Paleo-High SASKATCHEWAN ALBERTA HEMISPHERE Jenner Atlee JOURNEY Buffalo HME Land HME Wells SASKATCHEWAN ALBERTA ARSENAL Brooks Calgary CARDINAL Barrier Beach Paleo-High System 7
Focus: Southeast Alberta 2 core properties ~31,000 net acres 100% Working Interest Mannville and Pekisko oil zones Depth of 900-1,000 m Conventional Hz wells No fracs required JENNER ATLEE Alberta BUFFALO HME Land Suffield Military Base 8
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