Transformed & Restructured Prospera
Transitioning to Profitability in 2024
Calgary, Alberta, Canada -- February 7, 2024 -- InvestorsHub
NewsWire -- Prospera Energy Inc. ("Prospera" or the
"Company")(TSX.V:
PEI,
OTC: GXRFF, FRA: OF6B, OF6B.SG, OF6B.F, OF6B.BE).
Since 2021 Q1, Restructured Prospera has methodically executed
the planned development phases and attained drilling results
exceeding expectations and substantiating the technical and
economical applications. The nine heavy oil horizontal drills and
one medium light oil deviated well delivered initial production
exceeding the expected initial production rates. Medium-light oil
well was flowing at 500 bblspd and has stabilized to 300bblspd
substantially exceeding the anticipated 75bblpd. The heavy oil
horizontal wells yielded on average 100bblpd of initial production
higher than expected. These results enabled Prospera to attain
2023-year end peak rates of 1,800 bblspd with the capability to
2,200bblpd. Further, Prospera executed the drilling program
technically efficiently and economically under budget. This
resulted in a favorable capital payout in less than 6 months for
medium-light oil and an average payout of 9 months for the
horizontal heavy oil wells. These results are expected to increase
the reserve valuation substantially from the 2022-year end 2P
valuation of 72 million. The third party 2023 year-end reserve
valuation is expected in the coming weeks.
Based on the 2023 successful drilling results, Prospera is
positioned to increase production primarily in medium light oil and
continue the horizontal transformation to capture the substantial
remaining heavy oil reserves. The horizontals enable Prospera
to reduce environmental footprint, operating expense and asset
retirement liability while appreciating production. PEI is
proposing a robust 2024 capital development and acquisition plan to
achieve 2024 year-end exit target rate of 5,000 boepd. The proposed
capital program entails five geologically & seismically
delineated medium-light oil wells and fifteen low risk infill heavy
oil horizontal wells. Also, includes light oil acquisitions to
diversify the heavy-light product mix to optimize margins (letter
of intent to complete in Q2 of this year). The 2024 development,
ARO reduction and acquisitions are funded through existing cash
flow and non-dilutive credit facilities that are expected to be in
place in the second quarter.
Prospera has bolstered the operations and production engineering
team with experienced professionals to attain and sustain a monthly
average of 2,000 boepd by end of the first quarter. The 2,000 boepd
per month is expected to equate to gross revenue of $4.2 million
CAD per month ($70/bbl) and $2.1 million field netback ($35/bbl).
The heavy oil horizontal wells are currently being optimized
gradually, while the medium-light oil infrastructure is being
constructed to accommodate the current and planned 2024 drills.
Meanwhile, the development teams are preparing for the upcoming
2024 capital program to commence after break-up (in the latter part
of Q2 2024).
In addition, significant ARO reduction projects are planned for
the summer 2024 that include 40+ wells abandonment and lease
reclamations. Also, a facility/pipeline turnaround is planned,
which includes maintenance and calibration to accommodate the
proposed development.
About Prospera
Prospera Energy Inc. (TSX.V: PEI, OTC: GXRFF, FRA: OF6B) is a
publicly traded energy company based in Western Canada,
specializing in the exploration, development, and production of
crude oil and natural gas. Prospera is primarily focused on
optimizing hydrocarbon recovery from legacy fields through
environmentally safe and efficient reservoir development methods
and production practices. Prospera was restructured in the first
quarter of 2021 to become profitable and in compliance with
regulatory, environmental, municipal, landowner, and service
stakeholders.
The company is in the midst of a three-stage restructuring
process aimed at prioritizing cost effective operations while
appreciating production capacity and reducing liabilities. Prospera
has completed the first phase by optimizing low hanging
opportunities, attaining free cash flow, while bringing operation
to safe operating condition, all while remaining compliant.
Currently, Prospera is executing phase II of the restructuring
process, the horizontal transformation intended to accelerate
growth and capture the significant remaining reserves (400 million
bbls). These horizontal wells allow PEI to reduce its environmental
and surface footprint by eliminating the numerous vertical well
leases along the lateral path. Phase III of Prospera's corporate
redevelopment strategy is to optimize recovery through EOR
applications. Furthermore, Prospera will pursue its acquisition
strategy to diversify its product mix and expand its core area. Its
goal is to attain 50% light oil, 40% heavy oil and 10% gas.
PEI continues to apply efforts to minimize its environmental
footprint. Also, efforts to reduce and eventually eliminate
emissions, alongside pursuing innovative ESG methods to enhance API
quality, thereby achieving higher margins and eliminating the need
for diluents.
For Further Information:
Shawn Mehler, PR
Email: investors@prosperaenergy.com
Website: www.prosperaenergy.com
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating
to the future operations of the Corporation and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "will," "may," "should," "anticipate,"
"expects" and similar expressions. All statements other than
statements of historical fact included in this release, including,
without limitation, statements regarding future plans and
objectives of the Corporation, are forward-looking statements that
involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements.
Although Prospera believes that the expectations and assumptions
on which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because Prospera can give no assurance that they will
prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited to, risks
associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), commodity price and exchange rate
fluctuations and uncertainties resulting from potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures.
The reader is cautioned that assumptions used in the preparation
of any forward-looking information may prove to be incorrect.
Events or circumstances may cause actual results to differ
materially from those predicted, as a result of numerous known and
unknown risks, uncertainties, and other factors, many of which are
beyond the control of Prospera. As a result, Prospera cannot
guarantee that any forward-looking statement will materialize, and
the reader is cautioned not to place undue reliance on any forward-
looking information. Such information, although considered
reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this news
release are expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release, and Prospera does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by Canadian securities law.
Neither TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.