Hemisphere Energy Corporation has entered a farm-in agreement to earn lands in the Jenner area of southeast Alberta.

The agreement requires Hemisphere to commence the drilling of one horizontal well by March 31, 2012, subject to surface access, rig availability and regulatory approval.

Under the terms of the agreement Hemisphere will pay 100% of the drilling, completion and tie-in costs to earn 100% of the earned lands before payout, subject to a convertible overriding royalty. Once the obligations of the commitment well are fulfilled Hemisphere will have the option of drilling a second well to earn additional lands.

Hemisphere currently has oil production from its Jenner property in southeast Alberta, natural gas production from its Sylvan Lake and Wainwright properties in central Alberta and liquids-rich natural gas production from its Trutch property in northeast British Columbia.

Tags: Hemisphere Energy Corporation