Tag: Energy

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January 28, 2026 8:00 AM EST | Source: Hemisphere Energy Corporation

Vancouver, British Columbia–(Newsfile Corp. – January 28, 2026) – Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (“Hemisphere” or the “Company”) is pleased to declare a quarterly dividend to shareholders, deliver guidance for 2026, and provide a corporate update.

Quarterly Dividend

Hemisphere is pleased to announce that its Board of Directors has approved a quarterly cash dividend of $0.025 per common share in accordance with the Company’s dividend policy. The dividend will be paid on February 26, 2026 to shareholders of record as of the close of business on February 12, 2026. The dividend is designated as an eligible dividend for income tax purposes.

2026 Corporate Guidance

Hemisphere’s Board of Directors has approved a 2026 capital program of approximately $12 million, which provides the Company disciplined year-over-year growth, while protecting the balance sheet and maintaining shareholder returns. The budget will be entirely funded by Hemisphere’s estimated 2026 adjusted funds flow¹ (“AFF”) of $40 million.

After all capital expenditures¹, 2026 free funds flow¹ (“FFF”) is expected to be $28 million, of which approximately 35% will be allocated to quarterly base dividends. The balance of cash will be used for discretionary purposes, which may include potential acceleration of development or exploration projects, acquisitions, and additional return of capital to shareholders through Hemisphere’s normal course issuer bid (“NCIB”) program and/or special dividends. In 2025, two special dividends totaling $5.8 million ($0.06/share) were paid to shareholders in addition to Hemisphere’s base quarterly dividends of $9.6 million ($0.10/share). Coupled with $6.4 million ($0.04/share) spent on the Company’s NCIB, total shareholder returns for 2025 amounted to $21.8 million ($0.23/share).

Highlights and assumptions of Hemisphere’s guidance at US$60/bbl WTI are as follows:

• Average annual production of 3,900 boe/d (99% heavy oil)
• Average WTI price of US$60/bbl, with sensitivities shown at US$50/bbl and US$70/bbl
• WCS differential of US$12.50/bbl and quality adjustment of $4.00/bbl
• Cdn$ to US$ exchange rate of 0.72
• Operating and transportation costs of $15.00/boe
• Royalties of 16% at US$60/bbl WTI, 14% at US$50/bbl WTI, and 18% at US$70/bbl WTI
• Net G&A of $3.47/boe
• Tax Costs of $5.54/boe at US$60/bbl WTI, $2.98/boe at US$50/bbl WTI, $7.88/boe at US$70/bbl WTI
• Capital expenditures¹ of $12.0 million includes $0.4 million of asset retirement obligations (“ARO”)

2026 Corporate Guidance(2)		US$50 WTI	US$60 WTI	US$70 WTI
Adjusted Funds Flow (AFF)	$ million	28	40	51
AFF per Basic Share(1,3)	$/share	0.30	0.42	0.54
Capital Expenditures & ARO	$ million	12	12	12
Free Funds Flow (FFF)	$ million	16	28	39
FFF per Basic Share(1,3)	$/share	0.17	0.29	0.41
Base Dividend per Basic Share(3)	$/share	0.10	0.10	0.10

Notes:

(1) AFF, Capital Expenditures, and FFF (including per share amounts) are non-IFRS financial measures that are forward-looking and do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. AFF per basic share and FFF per basic share are non-IFRS financial ratios that are forward looking and do not have any standardized meaning under IFRS and therefore may not be comparable to similar ratios presented by other entities and include non-IFRS financial measure components of AFF and FFF. See “Non-IFRS Measures”.
(2) See assumptions noted above within “2026 Corporate Guidance”.
(3) Using a 2026 weighted average of 94.6 million basic shares issued and outstanding.
(4) The amounts above do not include potential future purchases through the Company’s NCIB program or other discretionary uses of available funds.

Corporate Outlook

Hemisphere’s corporate production to date in January is trending over 3,800 boe/d (99% heavy oil; field estimates from January 1 to 25, 2026). Over 95% of the Company’s production base is supported by enhanced oil recovery (“EOR”) polymer floods, with the effect of lower corporate decline rates, reduced capital requirements for production replacement, and higher free cash flows for shareholder returns.

Hemisphere entered 2026 debt-free with a positive working capital position of more than $7 million. Together with its projected $40 million AFF (US$60 WTI) for the year, the Company has a great deal of room to flexibly expand or reduce its planned $12 million capital program as market conditions evolve, while still returning significant value to shareholders and advancing strategic growth initiatives.

About Hemisphere Energy Corporation

Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, low decline conventional heavy oil assets through polymer flood EOR methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME” and on the OTCQX Venture Marketplace under the symbol “HMENF”.

For further information, please visit the Company’s website at www.hemisphereenergy.ca to view its corporate presentation or contact:

Don Simmons, President & Chief Executive Officer
Telephone: (604) 685-9255
Email: info@hemisphereenergy.ca

Website: www.hemisphereenergy.ca

Forward-Looking Statements

Certain statements included in this news release constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as anticipate, continue, estimate, expect, forecast, may, will, project, could, plan, intend, should, believe, outlook, potential, target, and similar words suggesting future events or future performance. In particular, but without limiting the generality of the foregoing, this news release includes forward-looking statements regarding the record date and payment date for Hemisphere’s quarterly dividend; that Hemisphere’s 2026 capital budget is planned to be entirely funded by Hemisphere’s estimated $40 million AFF (US$60 WTI); Hemisphere’s anticipation that approximately 35% of estimated $28 million in FFF will be paid in quarterly dividends with the balance of cash being used for discretionary purposes; the expected manner in which the Company’s 2026 capital budget will be spent, including the timing of such expenditures and any discretionary amounts, which may include potential acceleration of other development or exploration projects, acquisitions, and return of capital to shareholders through Hemisphere’s NCIB program and/or dividends, and the anticipated effects thereof, including as set forth under “2026 Corporate Guidance” and the Company’s dividend policy and the other matters and guidance set forth under “2026 Corporate Guidance”; and management’s belief that the 2026 development plan provides disciplined production growth while protecting the balance sheet, maintaining shareholder returns, and advancing strategic growth initiatives, with flexibility built in to allow for necessary adjustments based on market conditions.

Forward‐looking statements are based on a number of material factors, expectations or assumptions of Hemisphere which have been used to develop such statements and information, but which may prove to be incorrect. Although Hemisphere believes that the expectations reflected in such forward‐looking statements or information are reasonable, undue reliance should not be placed on forward‐looking statements because Hemisphere can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein (including the assumptions noted in respect of “2026 Corporate Guidance”), assumptions have been made regarding, among other things: the current and go-forward oil price environment; that Hemisphere will continue to conduct its operations in a manner consistent with past operations; continued trade-agreements remain in place and no trade related disputes will develop, including tariffs on Canadian energy production to the United States will be applicable, that results from drilling and development activities are consistent with past operations; the quality of the reservoirs in which Hemisphere operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; inflationary pressure and related costs; that the Company’s dividend policy will remain the same and the Company will continue to be able to declare dividends; the accuracy of the estimates of Hemisphere’s reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Hemisphere’s current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Hemisphere operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Hemisphere to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Hemisphere has an interest in to operate the field in a safe, efficient and effective manner; the ability of Hemisphere to obtain financing on acceptable terms; field production rates and decline rates; the accuracy of the Company’s reservoir modelling; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Hemisphere to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Hemisphere operates; and the ability of Hemisphere to successfully market its oil and natural gas products.

The forward‐looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward‐looking statements including, without limitation: changes in commodity prices; regulatory risks, including penalties or other remedial actions, the ability of the Company to maintain legal title to its properties; changes in the demand for or supply of Hemisphere’s products, the early stage of development of some of the evaluated areas and zones; unanticipated operating results or production declines; results of Hemisphere’s waterflood operations; the ability of Hemisphere to, pending future events, return capital to shareholders as a result of any required third party approvals; changes in budgets; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Hemisphere or by third party operators of Hemisphere’s properties, increased debt levels or debt service requirements; inaccurate estimation of Hemisphere’s oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time‐to‐time in Hemisphere’s public disclosure documents, (including, without limitation, those risks identified in this news release and in Hemisphere’s most recent Annual Information Form).

The forward‐looking statements contained in this news release speak only as of the date of this news release, and Hemisphere does not assume any obligation to publicly update or revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Forward-Looking Financial Information

This news release may contain future oriented financial information (“FOFI”) within the meaning of applicable securities laws, including with respect to the Company’s anticipated 2026 Free Funds Flow, Capital Expenditures and Adjusted Funds Flow (including where applicable per share amounts). The FOFI has been prepared by management to provide an outlook of the Company’s activities and results. The FOFI has been prepared based on a number of assumptions including the assumptions discussed and disclosed above, including in relation to “2026 Corporate Guidance” above and “Forward-Looking Statements” above and that the Company is cash taxable in 2026. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits the Company will derive therefrom. The Company has included the FOFI in order to provide readers with a more complete perspective on the Company’s future operations and such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any FOFI statements, whether as a result of new information, future events or otherwise, except as required by law.

Non-IFRS and Other Measures

This news release contains terms that are non-IFRS measures or ratios that are forward-looking and commonly used in the oil and gas industry which are not defined by or calculated in accordance with International Financial Reporting Standards (“IFRS”), such as: (i) adjusted funds flow (ii) adjusted funds flow per basic share; (iii) capital expenditures; (iv) free funds flow; and (v) free funds flow per basic share. These terms should not be considered an alternative to, or more meaningful than the comparable IFRS measures (as determined in accordance with IFRS) which in the case of funds flow is cash provided by operating activities, in the case of adjusted funds flow (and adjusted funds flow per share) is cash provided by operating activities and in the case of capital expenditures is cash flow used in investing activities. There is no IFRS measure that is reasonably comparable to free funds flow. These measures are commonly used in the oil and gas industry and by Hemisphere to provide shareholders and potential investors with additional information regarding: (i) in the case of adjusted funds flow and free funds flow, the Company’s ability to generate the funds necessary to support future growth through capital investment and to repay any debt.

Hemisphere’s determination of these measures may not be comparable to that reported by other companies. Adjusted funds flow is calculated as cash generated by operating activities, before changes in non-cash working capital and adjusted for any decommissioning expenditures; Adjusted funds flow per share is calculated using the outstanding basic shares of the company as footnoted in the 2026 Corporate Guidance table; Free Funds Flow is calculated as Adjusted Funds Flow less capital expenditures; and Free funds flow per share is calculated using the outstanding basic shares of the company as footnoted in the 2026 Corporate Guidance table. The Company has provided additional information on how these measures are calculated, including a reconciliation of such measures to their comparable IFRS measure, in the Management’s Discussion and Analysis for the year ended December 31, 2024 and the interim period ended September 30, 2025, which are available under the Company’s SEDAR+ profile at www.sedarplus.ca.

In respect of any forward-looking non-IFRS measures, there is no significant difference between the non-GAAP financial measure that are forward-looking information and the equivalent historical non-GAAP financial measures.

In this news release, Hemisphere uses the term market capitalization at year-end. Hemisphere’s market capitalization was $186.1 million based on 94,481,702 shares outstanding and the Company’s closing price of $1.97 per share on December 31, 2025.

All amounts are expressed in Canadian dollars unless otherwise noted.

Oil and Gas Advisories

Any references in this news release to recent production rates (including as a result of recent waterflood activities) which may be considered to be initial rates and are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.

A barrel of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Definitions and Abbreviations

bbl	Barrel	WTI	West Texas Intermediate
bbl/d	barrels per day	WCS	Western Canadian Select
$/bbl	dollar per barrel	US$	United States Dollar
boe	barrel of oil equivalent	Cdn$	Canadian Dollar
boe/d	barrel of oil equivalent per day	IFRS	International Financial Reporting Standards
$/boe	dollar per barrel of oil equivalent	G&A	General and Administrative Costs

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Source: Hemisphere Energy Corporation

Research News and Market Data on HMENF

December 15, 2025 5:41 PM EST | Source: Hemisphere Energy Corporation

Vancouver, British Columbia–(Newsfile Corp. – December 15, 2025) – Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (“Hemisphere” or the “Company”) announces that its Board of Directors has approved grants of incentive restricted share units (“RSU”) and stock options.

Restricted Share Units

Under the Company’s Restricted Share Unit Plan (the “Plan”), RSUs may be granted to directors, employees, and contractors of the Company. At the discretion of the Company’s Board of Directors, the Plan permits the Company to either redeem RSUs for cash or by issuance of Hemisphere’s common shares.

On December 12, 2025, the Company awarded 930,000 incentive RSUs to directors and officers of Hemisphere, all of which will vest one-third annually over a three-year period and will expire on December 15, 2028.

Stock Options

Additionally, in accordance with the Company’s Stock Option Plan, Hemisphere has granted 48,000 incentive stock options to its investor relations service provider on December 15, 2025 at an exercise price of $2.01 per share which will vest quarterly over 12 months and expire on December 15, 2030.

About Hemisphere Energy Corporation

Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, ultra-low decline conventional heavy oil assets through polymer flood enhanced oil recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME” and on the OTCQX Venture Marketplace under the symbol “HMENF”.

For further information, please visit the Company’s website at www.hemisphereenergy.ca to view its corporate presentation or contact:

Don Simmons, President & Chief Executive Officer
Telephone: (604) 685-9255
Email: info@hemisphereenergy.ca

Website: www.hemisphereenergy.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Research News and Market Data on HMENF

November 25, 2025 8:00 AM EST | Source: Hemisphere Energy Corporation

Vancouver, British Columbia–(Newsfile Corp. – November 25, 2025) – Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (“Hemisphere” or the “Company”) provides its financial and operating results for the three and nine months ended September 30, 2025, declares a quarterly dividend payment to shareholders, and provides an operations update.

Q3 2025 Highlights

• Attained quarterly production of 3,571 boe/d (99% heavy oil).
• Generated quarterly revenue of $23.1 million.
• Achieved total operating and transportation costs of $15.50/boe.
• Delivered operating netback¹ of $13.6 million or $41.39/boe for the quarter.
• Realized quarterly adjusted funds flow from operations (“AFF”)¹ of $10.1 million or $30.59/boe.
• Initiated a 2025 fall drilling program with $5.2 million in capital expenditures¹.
• Generated quarterly free funds flow¹ of $4.9 million.
• Exited the third quarter with a positive working capital¹ position of $11.0 million.
• Paid a special dividend of $2.9 million ($0.03/share) to shareholders on August 15, 2025.
• Paid a quarterly base dividend of $2.4 million ($0.025/share) to shareholders on September 12, 2025.
• Purchased and cancelled 1.0 million shares for $1.9 million under the Company’s Normal Course Issuer Bid (“NCIB”).
• Renewed the Company’s NCIB.

(1) Operating netback, adjusted funds flow from operations (AFF), free funds flow, capital expenditures, and working capital are non-IFRS measures, or when expressed on a per share or boe basis, non-IFRS ratio, that do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Non-IFRS financial measures and ratios are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Refer to the section “Non-IFRS and Other Specified Financial Measures”.

Selected financial and operational highlights should be read in conjunction with Hemisphere’s unaudited condensed interim consolidated financial statements and related notes, and the Management’s Discussion and Analysis for the three and nine months ended September 30, 2025 which are available on SEDAR+ at www.sedarplus.ca and on Hemisphere’s website at www.hemisphereenergy.ca. All amounts are expressed in Canadian dollars unless otherwise noted.

Quarterly Dividend

Hemisphere is pleased to announce that its Board of Directors has approved a quarterly cash dividend of $0.025 per common share in accordance with the Company’s dividend policy. The dividend will be paid on December 30, 2025 to shareholders of record as of the close of business on December 9, 2025. The dividend is designated as an eligible dividend for income tax purposes.

With the payment of the fourth quarter dividend, Hemisphere anticipates returning a minimum of $21.6 million to shareholders in 2025, including $9.6 million in quarterly base dividends, $5.8 million in two special dividends, and $6.2 million through NCIB share repurchases and cancellations. Based on the Company’s current market capitalization of $205 million (94.6 million shares issued and outstanding at a market close price of $2.17 per share on November 24, 2025), this represents an annualized yield of 10.5% to Hemisphere’s shareholders.

Operations Update

During the third quarter of 2025, Hemisphere’s production averaged 3,571 boe/d (99% heavy oil), representing a slight decrease of approximately 1% from the same period in 2024. The Company completed a number of workovers during the summer months, which contributed to production downtime during the quarter. However, September production of approximately 3,800 boe/d (99% heavy oil) was back in line with average levels of 3,830 boe/d (99% heavy oil) during the first six months of the year. This performance highlights the stability and low-decline characteristics of Hemisphere’s polymer flood assets in Atlee Buffalo, particularly given that no new wells had been placed on production since the Company’s third-quarter drilling program in 2024.

Throughout 2025, Hemisphere has taken a cautious approach to capital spending amid volatility in the global economy and oil markets, which resulted in delaying its drilling program until later in the year. In September the Company commenced a fall drilling program, which finished in early November. The new wells have just recently been put on production and will continue to be optimized over the coming months.

In October, Hemisphere successfully completed a scheduled facility turnaround and resolved unexpected issues with its power generation and injection systems. Although this short-term disruption will affect overall fourth-quarter production, all systems are now fully operational. November production has averaged approximately 3,800 boe/d (99% heavy oil, field estimate from November 1-22, 2025). Management anticipates fourth-quarter production will range between 3,400 – 3,500 boe/d (99% heavy oil) following this outage.

At the Company’s Marsden, Saskatchewan property, Hemisphere is continuing to evaluate its polymer pilot project. It has been approximately one year since injection commenced, and while an oil production response has not yet been noted, the data being collected is providing insights into reservoir performance. The Hemisphere team plans to advance its pilot project by evaluating the potential effects of producer/injector well spacing, polymer type and injection water, as well as reservoir heterogeneity and composition.

During its fall drilling program, Hemisphere attempted to test a second oil-bearing zone within its Marsden landbase. Unfortunately, drilling challenges prevented Hemisphere from being able to access the reservoir, and the Company is reviewing alternatives for future evaluation of the prospect.

Management anticipates WTI oil prices will average close to US$65 per barrel in 2025 and expects to exceed Hemisphere’s adjusted funds flow guidance estimate of $40 million for this price scenario, while projecting total capital expenditures to be on budget. This outlook holds despite the Company deferring its drilling program until late in the third quarter and experiencing unscheduled production downtime in the second half of the year. As a result, Hemisphere now estimates average annual 2025 production will be approximately 3,600 – 3,700 boe/d (99% heavy oil), compared to its original guidance of 3,900 boe/d (99% heavy oil).

The Company expects to release details on its 2026 guidance in January as part of its forward development planning. Supported by approximately $11 million in working capital, an undrawn credit facility, and strong cash flow from its low-decline production base, Hemisphere is well positioned with a robust balance sheet to pursue potential acquisition opportunities while continuing to deliver shareholder returns.

About Hemisphere Energy Corporation

Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, ultra-low decline conventional heavy oil assets through polymer flood enhanced oil recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME” and on the OTCQX Venture Marketplace under the symbol “HMENF”.

For further information, please visit the Company’s website at www.hemisphereenergy.ca to view its corporate presentation or contact:

Don Simmons, President & Chief Executive Officer
Telephone: (604) 685-9255
Email: info@hemisphereenergy.ca

Website: www.hemisphereenergy.ca

View full release here.

SOURCE: Hemisphere Energy Corporation