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Hemisphere Energy Declares Quarterly Dividend , Announces 2026 Second Quarter Results , and Provides Operations Update Vancouver , British Columbia -- ( Newsfile Corp. - August 20 , 2026 ) - Hemisphere Energy Corporation ( TSXV : HME ) ( OTCQX : HMENF ) ( " Hemisphere " or the " Company " ) declares a quarterly payment to shareholders , provides its financial and operating results for the three and six months ended June 30 , 2026 , and provides an operations update . Quarterly Dividend Hemisphere is pleased to announce that its Board of Directors has approved a quarterly base cash dividend of $ 0.025 per common share in accordance with the Company's dividend policy . The dividend will be paid on September 11 , 2026 to shareholders of record as of the close of business on August 28 , 2026. The dividend is designated as an eligible dividend for income tax purposes . Q2 2026 Highlights • Generated record revenue of $ 33.6 million . • Delivered record operating netback 1 of $ 22.1 million , or $ 67.94 / boe . • Realized record quarterly adjusted funds flow from operations ( " AFF " ) 1 of $ 16.7 million , or $ 51.25 / boe . • Generated record free funds flow of $ 14.2 million , or $ 0.15 / share . • Produced 3,576 boe / d ( 99 % heavy oil ) during the quarter . • Achieved total operating and transportation costs of $ 14.35 / boe . • Distributed $ 2.4 million , or $ 0.025 / share , in base dividends to shareholders during the quarter . • Distributed $ 5.7 million , or $ 0.06 / share , in special dividends to shareholders during the quarter . • Purchased and cancelled 30,000 shares at an average price of $ 2.52 / share under the Company's Normal Course Issuer Bid ( " NCIB " ) . • Renewed the Company's $ 35 million two - year extendible credit facility . • Exited the quarter with no bank debt and positive working capital of $ 19.5 million . ( 1 ) Operating netback , adjusted funds flow from operations ( AFF ) , free funds flow , 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 six months ended June 30 , 2026 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 . Financial and Operating Summary ( $ 000s except per unit and share amounts ) FINANCIAL Petroleum and natural gas revenue Operating field netback ( 1 ) Operating netback ( 1 ) Cash flow provided by operating activities ( 2 ) Three Months Ended June 30 2026 2025 Six Months Ended June 30 2026 2025 $ 33,578 $ 24,395 $ 58,981 $ 51,734 22,163 14,890 38,969 32,071 22,112 13,990 38,776 30,986 19,333 11,846 13,999 28,028