HispanicBusiness

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/13 -- Hemisphere Energy Corporation (TSX VENTURE: HME) is pleased to announce its financial and operating results for the three and nine months ended November 30, 2012. All amounts are expressed in Canadian dollars.

Achievements and Highlights

--  Increased third quarter revenue by 114% to $2.7 million compared to $1.3    million in the same quarter of the previous fiscal year.--  Increased revenue for the first nine months by 293% to $7.2 million    compared to $1.8 million in the same period last year.--  Increased third quarter funds flow from operating activities by 107% to    $1.5 million ($0.03/share) compared to $0.7 million ($0.02/share) during    the same quarter of the previous fiscal year.--  Increased funds flow from operating activities for the first nine months    of the fiscal year by 449% to $3.3 million ($0.07/share) compared to    $0.6 million ($0.02/share) in the same period last year.--  Grew third quarter production by 107% to 430 barrels of oil equivalent    per day ("boe/d") from 208 boe/d in the third quarter of the previous    fiscal year.--  Increased third quarter's oil and natural gas liquids ("NGL") weighting    to 95% from 79% in the previous year's third quarter.--  Increased third quarter operating netback by 35% to $45.62 per barrel of    oil equivalent ("boe") from $33.76 per boe in the second quarter.--  Successfully drilled two horizontal wells and one vertical well    targeting oil-bearing sandstones of Glauconitic formation in Jenner,    Alberta.--  Completed and placed on production one horizontal oil well and one    vertical oil well in Jenner.--  Acquired a new 3D seismic program over prospective farm-in lands in    Jenner.

Selected financial and operational highlights should be read in conjunction with the company's unaudited condensed interim Financial Statements and related Management's Discussion and Analysis which are available on SEDAR at www.sedar.com and on Hemisphere's website at http://www.hemisphereenergy.ca/investors/financial-reports.

Financial and Operating Highlights

----------------------------------------------------------------------------                         Three months ended           Nine months endedFinancial                    November 30                 November 30                              2012          2011          2012          2011----------------------------------------------------------------------------Petroleum and natural gas revenue $   2,730,244 $   1,273,655 $   7,181,046 $   1,827,044Petroleum and natural gas netback $   1,784,702 $     890,541 $   4,292,002 $   1,146,357Funds flow from operating activities          $   1,448,807 $     699,535 $   3,340,926 $     608,407 Per share, basic  and diluted        $        0.03 $        0.02 $        0.07 $        0.02Net income           $     695,833 $     596,508 $     865,183 $     212,161 Per share, basic  and diluted        $        0.01 $        0.02 $        0.02 $        0.01Capital expenditures $   3,905,686 $   2,471,998 $   9,830,352 $   5,356,735Working capital at end of period       $ (3,073,004) $   1,538,869 $ (3,073,004) $   1,538,869Net debt at end of period              $   1,250,000 $           - $   1,250,000 $           ---------------------------------------------------------------------------------------------------------------------------------------------------------                         Three months ended           Nine months endedOperating                    November 30                 November 30                              2012          2011          2012          2011----------------------------------------------------------------------------Average daily production Crude oil (bbl/d)             406           160           375            72 Natural gas (mcf/d)           132           264           163           240 NGL (bbl/d)                     2             4             3             3 Total (boe/d)                 430           208           405           115 Oil & NGL weighting           95%           79%           93%           65%----------------------------------------------------------------------------Average sales prices Crude oil ($/bbl)   $       72.91 $       79.17 $       68.34 $       78.07 Natural gas ($/mcf) $        2.23 $        3.81 $        1.94 $        3.56 NGL ($/bbl)         $       57.84 $       86.91 $       60.59 $       69.72 Combined ($/boe)    $       69.78 $       67.39 $       64.47 $       58.02----------------------------------------------------------------------------Operating netback ($/boe) Petroleum and  natural gas  revenue            $       69.78 $       67.39 $       64.47 $       58.02 Royalties           $        9.33 $        9.50 $       11.15 $        8.10 Operating costs     $       13.20 $        8.49 $       11.71 $       11.84 Transportation  costs              $        1.64 $        2.28 $        3.09 $        1.68 Operating netback   $       45.62 $       47.12 $       38.52 $       36.40----------------------------------------------------------------------------