HEMISPHERE ENERGY CORPORATION : http://www.hemisphereenergy.ca/ : QwikReport
Corporate Info
Northern Hemisphere Development Corp. (TSX-V: NHD) has been developing oil and gas projects in North America since the late 1970's. Initially focused in the United States, NHD participated in the discovery and development of the Tomcat Gas Well in Oklahoma in 1981, the largest gas well ever drilled in the U.S. at the time. NHD continues to receive production revenue from the Tomcat Well.
In 2004, NHD acquired a 17.5% working interest in the 26 square mile Bougie Trutch Property located north of Fort St John, British Columbia. In 2005, in conjunction with Shell Canada, a test well was drilled on Bougie Trutch targeting the Devonian Slave Point Formation, a deep zone with the potential to host substantial natural gas pools.
This initial drilling resulted in the discovery of another, shallower gas pool on the property, the Triassic Halfway Formation. Two successful Halfway wells were drilled in late 2005. Focus Energy Trust came into to the project as Operator and as a partner on development wells.
Subsequently, NHD acquired a 17.5% working interest in a further 15 square miles, the Trutch East property, adjacent to Bougie Trutch, for a total contiguous property holding of 41 square miles. Drilling of two more development wells, one on each property, followed in 2006.
In February of 2007, a pipeline extension from Focus' prolific Tommy Lakes Field was constructed and three of NHD's wells were tied in for production. Work completed to date has earned Northern Hemisphere a 17.5% interest in all producing wells and in the six-inch pipeline connecting them for production. A line of this size is capable of carrying gas from a large number of wells, and NHD anticipates a secondary income stream from other wells that may tie into the line.
The successful development of the Halfway Formation gas wells and completion of the connecting pipeline provides Northern Hemisphere with initial cash flow. All costs associated with the producing wells and the pipeline are met. NHD has a current cash balance of approximately $1 million, an ongoing revenue stream, and no debt.