The deal requires the company to begin drilling of one horizontal well by 31 March 2012, subject to surface access, rig availability and regulatory approval.
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, the company will have the option of drilling a second well to earn additional lands.
Hemisphere said it is focused on building and developing core areas which provide low to medium risk drilling opportunities to increase production, reserves and cash flow.
