Hemisphere Energy Announces 64% Increase in Proved Plus Probable Reserves in 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 1, 2014) - Hemisphere Energy Corporation (TSX VENTURE:HME) is pleased to announce the results of its year-end independent reserves evaluation in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") as at December 31, 2013.

The independent reserves evaluation covers the twelve month period ended December 31, 2013. During the year Hemisphere drilled and placed on production two horizontal wells, acquired the Atlee Buffalo property and completed upgrades at its main facility in Jenner.

Highlights - December 31, 2013 compared to December 31, 2012

Proved Reserves

• Increased Proved reserves by 57% to 1,272.8 Mboe (90% oil & liquids).
• Increased NPV of Proved reserves by 37% to $24.6 million (before tax, discounted at 10%).
• Reserve replacement⁽¹⁾ of 271%.

Proved plus Probable Reserves

• Increased Proved plus Probable reserves by 64% to 2,073.7 Mboe (89% oil & liquids).
• Increased NPV of Proved plus Probable reserves by 44% to $38.2 million (before tax, discounted at 10%).
• Reserve replacement⁽¹⁾ of 476%.

Note:
	(1) Based on estimated 12 month 2013 production of 169,034 boe.

Summary of Reserves

The reserves data set forth below is based upon an independent reserves evaluation prepared by McDaniel & Associates Consultants Ltd. ("McDaniel") with an effective date of December 31, 2013 (the "McDaniel Report"). The following presentation summarizes Hemisphere's crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for Hemisphere's reserves using forecast prices and costs based on the McDaniel Report. The McDaniel Report has been prepared in accordance with definitions, standards, and procedures contained in the Canadian Oil and Gas Evaluation Handbook and NI 51-101.