Hemisphere Energy Corporation has entered into a seismic option and farm-in agreement (the "Agreement") in the Jenner area of southeast Alberta.
The Agreement requires Hemisphere to acquire 3D seismic data on or before August 15, 2012. Hemisphere will then have the option to drill a test well on or before November 15, 2012, subject to surface access, rig availability and regulatory approval.
Under the terms of the Agreement, Hemisphere will pay 100% of seismic costs and 100% of any drilling, completion and tie-in costs to earn 100% of the earned lands before payout, subject to a convertible overriding royalty. Once initial obligations are fulfilled, Hemisphere will have the option to acquire additional 3D seismic and drill additional wells to earn into a maximum of 6.5 sections of land in the Jenner area of southeast Alberta.