Exploration & Production | Quarterly / Earnings Reports | First Quarter (1Q) Update

Hemisphere Oil-Weighted Production Increases

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Hemisphere Energy Corporation has announced its financial and operating results for the three months ended March 31, 2014.

Q1 2014 Achievements and Financial Highlights

• Achieved quarterly average production of 567 boe/d (86% oil and NGL), a 37% increase over the same period in 2013.
• Generated a record $3.6 million in petroleum and natural gas revenue.
• Achieved record net income of $847,909 or $0.01 per share.
• Successfully drilled and placed on production the Company's first horizontal development well in Atlee Buffalo which has continued to perform at rates higher than anticipated and achieved an initial production rate of approximately 90 boe/d (93% oil) during its first 90 days.
• Successfully drilled two additional Glauconitic horizontal oil wells in Jenner.

Subsequent Achievements

• Closed a bought-deal equity financing for gross proceeds of $10 million at a price of $0.75 with net proceeds to be used to accelerate the Company's capital program focused on continuing development in Atlee Buffalo and Jenner. Hemisphere is currently finalizing its expanded drilling program and facility plans for the remainder of 2014.
• Installed a solution gas compressor at the Company's main production facility in Jenner to increase volume through-put.
• Based on field estimates, production for the month of April 2014 was approximately 670 boe/d (84% oil).

Financial and Operating Summary