Canadian Halal Investor.

TSX Shariah screener · October 2026

Is Hemisphere Energy Corporation (HME) Halal?

PASS

Hemisphere Energy Corporation · TSX Venture: HME · Energy

The short answer

Hemisphere Energy Corporation (TSX Venture: HME) is a PASS. The business gate passes: it is a dividend-paying conventional heavy-oil producer (99% oil weighting) using polymer-flood enhanced oil recovery at Atlee Buffalo in southeast Alberta and Marsden in Saskatchewan, with no prohibited segments. The debt gate passes: the company exited the second quarter of 2026 with no bank debt drawn (C$35M extendible credit facility undrawn), so debt is 0% of the ~C$211.1M market cap (94,250,109 shares × C$2.24, October 1, 2026), well under the ~33% ceiling. The income gate passes: separately disclosed interest income of C$85k is about 0.33% of Q1 2026 petroleum and natural gas revenue of C$25.4M, well under the ~5% ceiling. Cash and cash equivalents of C$8.1M (March 31, 2026) are about 3.9% of market cap. No Zoya, Musaffa, or ShariaPortfolio coverage was found. This is a rules-based screen, not a religious ruling.

Gate 1 — Business activity: PASS

Hemisphere is a TSX-V Tier 1 issuer with ~9 employees producing conventional heavy oil (99% oil weighting) via polymer-flood enhanced oil recovery. Its core asset is Atlee Buffalo in southeast Alberta (~85 km north of Medicine Hat; 20,200 net acres, 100% owned and operated), with a second area at Marsden, Saskatchewan (~50 km southeast of Lloydminster; 9,165 net acres, Colony Formation and a Sparky pilot polymer flood). Q2 2026 production averaged 3,576 boe/d with record quarterly revenue of C$33.6M; 2026 guidance targets ~3,900 boe/d. All revenue is petroleum and natural gas sales. There are no alcohol, gambling, weapons, tobacco, cannabis, conventional-lending/insurance, or pork segments. The business gate passes.

Gate 2 — Debt and cash: PASS

Hemisphere has a C$35M two-year extendible credit facility with a Canadian bank that was undrawn at both March 31, 2026 and June 30, 2026 — the August 20, 2026 Q2 results release states the company “exited the quarter with no bank debt.” Against a market cap of ~C$211.1M (94,250,109 shares outstanding × C$2.24, October 1, 2026, TSX Venture), interest-bearing debt is 0% — well under the ~33% ceiling. The company is a net saver here: it earns interest on its cash rather than paying it. Cash and cash equivalents of C$8.1M at March 31, 2026 are about 3.9% of market cap (positive working capital of C$19.5M at June 30, 2026 would cap at ~9.2% even if it were all cash). The debt and cash gates pass.

Gate 3 — Non-compliant income: PASS

The Q1 2026 report (May 12, 2026) separately discloses C$85k of interest income in its Finance Expense note — its own line, not netted away. Against Q1 2026 petroleum and natural gas revenue of C$25.4M, that is about 0.33% — well under the ~5% ceiling. The income gate passes.

Key figures used

Frequently asked questions

Is Hemisphere Energy (HME) halal?

Our October 2026 screen gives Hemisphere Energy Corporation (TSX Venture: HME) a PASS. The business gate passes (dividend-paying conventional heavy-oil producer using polymer-flood enhanced oil recovery at Atlee Buffalo, SE Alberta and Marsden, SK; no prohibited segments). The debt gate passes (no bank debt drawn at June 30, 2026 — the C$35M credit facility was undrawn — so debt is 0% of the ~C$211.1M market cap, far under the ~33% ceiling). The income gate passes (separately disclosed interest income of C$85k is about 0.33% of Q1 2026 petroleum and natural gas revenue of C$25.4M, well under the ~5% ceiling). Cash and cash equivalents of C$8.1M (March 31, 2026) are about 3.9% of market cap. No Zoya, Musaffa, or ShariaPortfolio coverage was found. This is a rules-based screen, not a religious ruling.

What does Hemisphere Energy do?

Hemisphere is a dividend-paying conventional heavy-oil producer (99% oil weighting) that uses polymer-flood enhanced oil recovery. Its core asset is Atlee Buffalo in southeast Alberta (~85 km north of Medicine Hat; 20,200 net acres, 100% owned and operated), with a second area at Marsden, Saskatchewan (~50 km southeast of Lloydminster; 9,165 net acres, Colony Formation and a Sparky pilot polymer flood). Q2 2026 production averaged 3,576 boe/d with record quarterly revenue of C$33.6M; 2026 guidance targets ~3,900 boe/d. All revenue is petroleum and natural gas sales.

How much debt does Hemisphere Energy have?

None drawn. Hemisphere has a C$35M two-year extendible credit facility with a Canadian bank that was undrawn at both March 31, 2026 and June 30, 2026 — the August 20, 2026 Q2 results release states the company “exited the quarter with no bank debt.” Against a market cap of ~C$211.1M (94,250,109 shares outstanding × C$2.24, October 1, 2026, TSX Venture), interest-bearing debt is 0% — well under the ~33% ceiling. The company is a net saver: it earns interest on its cash rather than paying it.

Is Hemisphere Energy’s income compliant?

Yes. The Q1 2026 report (May 12, 2026) separately discloses C$85k of interest income in its Finance Expense note — its own line, not netted away. Against Q1 2026 petroleum and natural gas revenue of C$25.4M, that is about 0.33% — well under the ~5% ceiling. The income gate passes.

What do third-party Shariah screeners say about HME?

No Zoya, Musaffa, or ShariaPortfolio rating was found for HME in public search — none of the three named providers surfaced coverage, so no rating is claimed here.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.