Hemisphere Energy - Special Dividend

[Petroleum economist]

Vancouver, British Columbia--(Newsfile Corp. - July 15, 2025) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") is pleased to announce that its board of directors has approved the declaration of a special dividend to shareholders.

Special Dividend

Given the strong financial position and performance outlook of the Company, Hemisphere's board of directors has approved the declaration of a special dividend of $0.03 per common share, in accordance with its dividend policy. The special dividend will be paid on August 15, 2025 to shareholders of record on July 31, 2025, and is designated as an eligible dividend for Canadian income tax purposes. It is in addition to the Company's quarterly base dividend of $0.025 per common share and is the Company's second special dividend payment in 2025.

Hemisphere remains committed to delivering value to its shareholders, having already returned a total of $12.2 million ($0.13 per common share) to date in 2025, including $4.5 million in share repurchases and cancellations under the Company's normal course issuer bid, $4.8 million in quarterly dividend payments, and $2.9 million in special dividends. This return of capital is funded entirely by the Company's free cash flow and is supported by Hemisphere's high-margin enhanced oil recovery ("EOR") assets, ultra-low production decline, and healthy balance sheet.

The Hemisphere shareholder returns remain high. With the bulk of ten 2025 capex coming in Q3, I do not expect a special dividend or share buybacks from Hemisphere in Q3, but either may be restarted in Q4. Total 2025 shareholder returns can reach 10.5-11.0%.
2025 returns will be dependent on the plans for Marsden. If the ongoing Marsden polymer trial is successful, then Marsden will require extra capex which will dampen 2026 shareholder returns.

[dan_s]

HME is Susan's largest holding and it's up more than 1,000% since she bought it.
It is a money machine now.
We are looking forward to success at Marsden.