September 24, 2024 8:00 AM EDT | Source: Hemisphere Energy Corporation
Vancouver, British Columbia–(Newsfile Corp. – September 24, 2024) – Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) (“Hemisphere” or the “Company”) is pleased to announce that its board of directors has approved the declaration of a special dividend to shareholders and provide an update from field operations.
Special Dividend
Given Hemisphere’s strong financial position and positive performance outlook, the board of directors has approved a declaration of a special dividend of C$0.03 per common share, in line with the Company’s dividend policy. This special dividend is scheduled to be paid on October 25, 2024, to shareholders of record on October 11, 2024, and is classified as an eligible dividend for Canadian income tax purposes. It complements the Company’s quarterly base dividend of C$0.025 per common share.
To date in 2024, Hemisphere has allocated $17.4 million to shareholder returns through quarterly base dividend payments and special dividend payments, as well as shares repurchased and cancelled under the normal course issuer bid. This return of capital, financed entirely by the Company’s free cash flow, is facilitated by its high netback, ultra-low decline enhanced oil recovery (“EOR”) assets.
Operations Update
Over the past two months, Hemisphere has successfully drilled six horizontal wells into its southeast Alberta Atlee Buffalo F and G pools, with two more wells to be drilled as part of the summer development program. The company anticipates completion of drilling operations early in the fourth quarter, with wells being brought into production as they are tied-in for the remainder of the year.
In addition, Hemisphere has initiated polymer injection at its new pilot EOR project in Marsden, Saskatchewan. Management estimates that it may take until mid-2025 to increase reservoir pressure and evaluate production response from the three producers.
About Hemisphere Energy Corporation
Hemisphere is a dividend-paying Canadian oil company focused on maximizing value per share growth through sustainable development of its high netback, ultra-low decline conventional heavy oil assets using polymer flood EOR methods. The Company trades on the TSX Venture Exchange under the symbol “HME” and on the OTCQX Venture Marketplace under the symbol “HMENF”.
For more information, please visit the Company’s website at www.hemisphereenergy.ca to access its corporate presentation or contact:
Forward-looking Statements
The forward-looking statements in this news release are subject to a number of material factors, expectations, or assumptions of Hemisphere that may prove incorrect. While the Company believes these expectations are reasonable, caution should be exercised when relying on them. Various factors and assumptions have been considered in developing these forward-looking statements, including the timing of the special dividend payment, completion of drilling operations, and the evaluation of production response at the pilot EOR project in Marsden, Saskatchewan.
Actual results may differ materially from these forward-looking statements due to known and unknown risks and uncertainties, including changes in project timelines, commodity prices, operating results, tax laws, and regulatory matters. Detailed risks are outlined periodically in Hemisphere’s public disclosure documents.
The forward-looking statements mentioned in this news release are accurate as of the release date, and Hemisphere disclaims any obligation to update or revise them, except as required by applicable securities laws.
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.
For the original source of this press release, please visit https://www.newsfilecorp.com/release/224341
