Hemisphere Energy Completes Acquisition of Atlee Buffalo and Announces Record Production

VANCOUVER, BRITISH COLUMBIA–(Marketwired – November 18, 2013) – Hemisphere Energy Corporation (TSX VENTURE:HME) (“Hemisphere”) is pleased to announce that it has completed its previously announced $3.35 million acquisition of oil and gas assets in the Atlee Buffalo area of ​​southeastern Alberta from an intermediate Canadian producer, effective from June 1, 2013 (“Atlee Buffalo Acquisition”).

The acquisition of Atlee Buffalo provides Hemisphere with the opportunity to leverage its technical experience and successful track record in drilling horizontal wells and implementing pressurization programs to achieve higher recovery rates from existing oil reservoirs.

Highlights of the Atlee Buffalo takeover:

• 100% operating interest in 8.25 adjacent sections covering two significant glauconitic oil deposits

• It is located 25 kilometers east of Jenner’s main oil-producing estate in the hemisphere

• Estimated original oil instead of up to 49 million barrels based on Hemisphere’s internal mapping of acquired lands at a current recovery rate of just 4%⁽¹⁾

• Stable, operational production of approximately 60 boe/d (75% oil)⁽²⁾

• Proven and probable reserves amount to 224 Mboe ⁽³⁾

• Net present value of proved and probable reserves of $5.1 million, pre-tax and discounted at 10%.⁽³⁾

• Up to 75 horizontal drilling locations have been identified to develop the deposit

• Significant benefit in terms of future reserve expansion by implementing water and/or polymer flooding

Comments:

1. Based on Hemisphere internal estimates.

2. Based on average sales volumes in the third quarter of 2013.

3. Reserve report of GLJ Petroleum Consultants Ltd. effective from December 31, 2012

Operational update

Following completion of the Atlee Buffalo acquisition, Hemisphere achieved record production volumes of approximately 675 boe/d (75% crude). Hemisphere expects to complete upgrades to the main oil battery to increase drainage capacity by the end of November. This operation will enable the fluid volume of many existing wells to be optimized to increase oil production and will ensure the production capacity of new wells in the future.

About Hemisphere Energy Corporation

Hemisphere is an oil and gas exploration and production company focused on developing key areas providing low-to-moderate risk drilling opportunities to increase production, reserves and cash flow. Hemisphere’s continued growth plan includes pursuing existing potential customers and pursuing strategic acquisitions and settlements. Hemisphere is listed on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME”.

Please visit the Hemisphere website at www.hemisphereenergy.ca to view our updated corporate presentation.

Forward-looking statements

This press release contains “forward-looking statements” based on Hemisphere’s current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding Hemisphere’s prospects for our future operations, plans and timing of initiating or advancing exploration and development activities on our properties, and other expectations, intentions and plans that are not historical facts. The words “estimates,” “projects,” “expects,” “intends,” “believes,” “plans” or the negative thereof or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of the hemisphere. Accordingly, all forward-looking statements contained in this press release are qualified by this cautionary statement, and there can be no assurance that the actual results or developments anticipated by Hemisphere will be realized. For the reasons set out above, investors should not place undue reliance on such forward-looking statements. Hemisphere disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

A barrel of oil equivalent (“boe”) can be misleading, especially when used in isolation. The boe conversion factor of 6 Mcf:1 Bbl is based on an energy equivalence conversion method primarily used at the burner tip and does not reflect equivalence values ​​at the wellhead.

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