Hemisphere Energy Updates Operations at Marsden and Atlee Buffalo

Hemisphere Energy Corporation, a Canadian oil company focused on maximizing value-per-share growth through the sustainable development of its high netback, low decline conventional heavy oil assets, has provided an update on its operations in Marsden, Saskatchewan, and Atlee Buffalo, Alberta.

In Marsden, Saskatchewan, Hemisphere recently drilled two successful horizontal wells targeting the Colony Formation. These wells have been on production for three weeks at approximately 100 barrels per day (bbl/d) each, based on field estimates from August 26 to September 15. The production is 100% heavy oil. With these positive initial production rates, the company will begin evaluating the Colony Formation for further development in 2027.

At Atlee Buffalo, Alberta, the company's focus is on restoring production that was shut-in following a fire at its Atlee G pool battery. The company continues to assess options to resume production as quickly and safely as possible while working closely with its insurance providers regarding its property damage and business interruption claim. The company's combined total single-claim coverage for an approved claim is $40 million, including six months of business interruption insurance following a 30-day waiting period.

Hemisphere's immediate priority is to repair the damaged electrical system and restore power to the facility. Electrical work is underway and expected to be complete by mid-October. In parallel, the company has sourced one replacement treater to date and is advancing the site engineering design. The company will provide further updates on the equipment replacement schedule as procurement plans are finalized.

As of September, the company's production is currently averaging approximately 1,000 barrels of oil equivalent per day (boe/d), with 99% of the production being heavy oil. Management anticipates production will remain near this level until the G pool is brought back online. Subject to construction timing, partial production from the G pool may commence before the end of November. Returning to previous production levels will likely require additional equipment and time to restart polymer injection and ramp all wells up to optimized rates. The company expects to fully return to normal operations and restore production to its previous levels during the first quarter of 2027.