Vancouver, British Columbia--(Newsfile Corp. - November 2, 2026) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") is pleased to provide an update on its insurance claim related to the previously reported fire at its Atlee G pool battery and the restoration of operations at Atlee Buffalo.

Hemisphere has begun to receive funds from its insurance providers for an approved $15 million lump-sum interim payment toward its property damage and business interruption insurance claim in relation to the previously announced fire at its Atlee G pool battery.

Reconstruction activities at Atlee are well underway, keeping the Company on schedule to restart partial production from the G pool before the end of November. Electrical power has been restored to the site, additional tankage has been procured, and one treater has been purchased to date. Additional equipment required to restore full capacity is still being sourced.

As production and polymer injection are brought back online, management anticipates a ramp-up period before returning to previous production levels. The Company remains on track to resume normal operations at its Atlee G pool by the end of the first quarter of 2027.

Based on field estimates for the month of October, corporate production has averaged just over 1,000 boe/d (99% heavy oil). This includes production from the Company's two new Marsden Colony wells, which continue to produce at a combined rate of approximately 200 boe/d (100% heavy oil).

The Hemisphere team extends its sincere appreciation to shareholders for their continued support, and to all field staff and contractors for their hard work and dedication as the Company rebuilds its facility and works toward restoring production.

About Hemisphere Energy Corporation

Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, low decline conventional heavy oil assets through polymer flood enhanced oil recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol "HME" and on the OTCQX Venture Marketplace under the symbol "HMENF".

Forward-Looking Statements

Certain statements in this news release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. Without limitation, this news release contains forward-looking statements regarding potential timing for commencing partial production and full production from the G pool; expected insurance coverages and limits; and the timing and feasibility of partial production measures and production restoration to previous levels.

Forward-looking statements are based on material factors, expectations and assumptions that Hemisphere considers reasonable as of the date hereof, but which may prove to be incorrect. Such assumptions include, among other things: ongoing assessment of fire-related damage; the timing and cost of restoring operations; the availability of equipment, personnel, contractors and approvals; the availability, timing and sufficiency (as well as applicability) of insurance coverage and proceeds; the Company's ability to complete clean-up, debris removal and rebuilding activities, including electrical system rebuilding; the ability to restore production in a safe and efficient manner and in a manner consistent with prior practices; and the Company's ability to maintain its dividend policy.

Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that may cause actual results to differ materially from those anticipated, including, without limitation: changes to damage assessments; unidentified liabilities, including environmental liabilities; delays or cost increases related to clean-up, debris removal, equipment procurement, electrical system rebuilding, facility repair or production restoration and being able to source and procure the necessary materials and equipment to restore production and normal course operations; insurance limits, exclusions, deductibles, waiting periods, disputes or delays; ability to restore the productive capacity of the Company's wells (including those under polymer flood); changes in commodity prices; changes in demand for or supply of Hemisphere's products; unanticipated operating results or production declines; changes in tax, environmental, royalty or other regulatory matters; changes in development plans; increased debt levels or debt service requirements; inaccurate reserve estimates; limited or unfavourable access to capital markets; increased costs; insufficient insurance coverage; competitive risks; and other risks described in Hemisphere's public disclosure documents, including its Annual Information Form.

The forward‐looking statements contained in this news release speak only as of the date of this news release, and Hemisphere does not assume any obligation to publicly update or revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

All amounts are expressed in Canadian dollars unless otherwise noted.

Oil and Gas Advisories

A barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Any references in this news release to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not indicative of long-term performance or ultimate recovery. Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery. A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of the Company or the subject properties.

Definitions and Abbreviations

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321985