Hemisphere Energy Declares Special Dividend and Announces 2025 Year-end Reserves

Core Viewpoint - Hemisphere Energy Corporation has announced a special dividend of $0.03 per common share due to rising crude oil prices and strong financial performance, alongside highlights from its independent reserves evaluation as of December 31, 2025 [1][2]. Special Dividend - The special dividend of $0.03 per common share will be paid on April 28, 2026, to shareholders of record on April 15, 2026, in addition to the quarterly base dividend of $0.025 per common share [2]. 2025 Reserve Highlights - In 2025, Hemisphere executed a capital expenditure program of $16 million, resulting in a 6% annual production growth. The company ended the year with over $8.5 million in working capital after returning $21.8 million to shareholders through dividends and share buybacks [3]. Production and Asset Base - Hemisphere's conventional oil assets have low production decline rates and high-value reserves, with current production at approximately 3,800 boe/d, predominantly heavy oil [4]. Pricing Outlook - The 3-Consultant Average Price Forecast indicates a significant decrease in WCS pricing, down approximately 23% in 2026, 16% in 2027, and 10% over the subsequent 15 years, with a projected WTI price of US$68.12/bbl and WCS price of Cdn$74.29/bbl for 2026 [5][8]. Reserves Evaluation - The independent reserves evaluation by McDaniel indicates that Hemisphere's proved developed producing (PDP) reserves are valued at an NPV10 BT of $212 million, equivalent to $2.24 per basic share, with total proved reserves of 11,780 Mboe and total proved plus probable reserves of 15,185 Mboe [11][13]. Future Development Costs - Future development costs for 1P and 2P reserves are estimated at $38.69 million and $53.00 million, respectively, with discounted costs at 10% being $31.66 million for 1P and $43.44 million for 2P [17]. Net Asset Value (NAV) - The NAV per fully diluted share is estimated at $2.31 for PDP, $2.71 for 1P, and $3.35 for 2P based on the reserve report pricing assumptions [18].