Hemisphere Energy Announces 2023 Fourth Quarter And Year-End Financial And Operating Results

Vancouver, British Columbia, April 18, 2024 – Hemisphere Energy Corporation ("Hemisphere" or the "Company") is pleased to provide its financial and operating results for the fourth quarter and year ended December 31, 2023. 

2023 Highlights 

  • Increased fourth quarter production by 16% to a record of 3,386 boe/d (99% heavy oil), and annual production by 11% to 3,125 boe/d (99% heavy oil), as compared to 2022. 
  • Achieved annual revenue of $84.5 million, with adjusted funds flow from operations ("AFF")(1) of $39.4 million. 
  • Invested $16.9 million to drill eight successful Atlee Buffalo wells, one unsuccessful exploration well, upgrade facilities, purchase land and seismic, and pre-purchase materials for the 2024 development program. 
  • Generated $22.5 million of free funds flow ("FFF")(1). 
  • Distributed $10.1 million in quarterly dividends to shareholders. 
  • Distributed $3.0 million in special dividends to shareholders. 
  • Purchased and cancelled 3.2 million shares at an average price of $1.28 per share under the Company’s normal course issuer bid ("NCIB"), returning $4.1 million to shareholders. 
  • Exited the year with a positive working capital(1) position of $3.6 million compared to a net debt(1) position of $0.8 million at December 31, 2022. 
  • Increased Proved Developed Producing (PDP) NPV10 BT reserve value by 9% to $248 million and maintained reserve volumes at 8.2 MMboe (99.6% heavy oil). 
  • Increased Proved (1P) NPV10 BT reserve value by 5% to $325 million and maintained reserve volumes at 12.1 MMboe (99.4% heavy oil). 
  • Increased Proved plus Probable (2P) NPV10 BT reserve value by 5% to $416 million and maintained reserve volumes at 16.3 MMboe (99.4% heavy oil). 

Note: 

(1) Non-IFRS financial measure that is not a standardized financial measure under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar financial measures disclosed by other issuers. Refer to “Non-IFRS and Other Financial Measures” section below. 

Financial and Operating Summary 

Selected financial and operational highlights should be read in conjunction with Hemisphere’s audited annual financial statements and related Management’s Discussion and Analysis for the year ended December 31, 2023. These reports, including the Company’s Annual Information Form for the year ended December 31, 2023, 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. 

See the PDF version of the News Release for further information.