Prospera Energy Inc. Launches Game-Changing Phase 2 Development, On-Track to Boost Production and Unlock Significant Remaining Reserves
21 Juillet 2023 - 8:33AM
Prospera Energy Inc. ("
Prospera" or the
"
Corporation") (PEI: TSX-V; OF6A: FRA)
Prospera Energy Inc. is pleased to announce the
mid-August spud of its phase 2 restructured development program
intended to increase production. The Phase 2 development entails
the drilling of 10 horizontal wells in heavy oil and 8 slanted
wells in medium-light oil to accelerate growth and capture the
significant remaining reserves (400 milion bbls). These horizontal
laterals and slanted wells will allow PEI to increase production by
approximately 1,000bpd with recovery of approximately 100Mstb per
well. PEI will reduce its environmental and surface footprint by
eliminating the numerous vertical well leases along the lateral
path.
Two re-entry horizontal well pilots were
completed in Q2, 2022. These laterals encountered structure, pay,
and oil as per geological, seismic, and reservoir prognosis. This
pay was thick, porous and highly permeable, held together by the
medium-heavy oil. PEI also encountered unexpected prolific gas in
the build section. This Phase 2 development of ten conventional
horizontal wells was fine-tuned based on the learnings of these
first two pilots. PEI is pleased with the encouraging results and
the learnings from the two pilots. The Phase 2 development
horizontal well program is expected to deliver initial production
rate 75-100 bpd and to recover 100Mstb at a cost of approximately
850k$ per well. PEI has a large drilling inventory of 150+
horizontal locations.
Prospera previously announced medium-light oil
flowing at 400 barrels per day production test results from the
strategic medium-light oil property acquisition to diversify API
product mix to increase margin and PEI asset value. These two good
performers have proved up two distinct pools for PEI. Phase 2
development includes drilling of eight slanted wells from well
controlled geology and the 3D seismic interpretation. This low-cost
medium-light oil development will diversify PEI’s financial
portfolio and improve corporate profitability.
This ten well program can approximately add an
additional 750 bpd at a low decline. The eight medium-light oil
drilling programs can add an additional 600bpd (gross) at 50% WI.
Overall, this phase 2 development plan will allow PEI to become a
low-cost producer with significant production increase.
Prospera Energy strives to maximize production
while continuously reducing costs to increase profitability in
order to achieve our structured growth plan that focuses on
scalability and driving shareholder value. PEI will continue to
execute the liability management plan to reduce the asset
retirement obligation and fixed operating expense by abandoning the
numerous vertical leases along the lateral path. PEI initiatives
are to increase production, incorporate innovative technologies to
reduce carbon emission, increase carbon capture, and to improve
margin. Prospera takes pride in our capital positioning to achieve
our 2023 outlook and beyond.
2023 Outlook
PEI restructured efforts have resulted in
manageable liabilities, safe operating infrastructure and optimized
critical production rates up to gross 1,000 boepd from vertical
wells. In 2023, PEI has positioned itself to execute the second
phase of PEI development plan that is to increase production
through medium-oil development in Alberta and horizontal wells and
capture the significant remaining reserves in Saskatchewan. While
abandoning vertical wells and reducing the environmental footprint
and ARO obligations.
About Prospera
Prospera is a public oil and gas exploration,
exploitation and development company focusing on conventional oil
and gas reservoirs in Western Canada. Prospera will use its
experience to develop, acquire, and drill assets with potential for
primary and secondary recovery.
For further information:
Shawn Mehler, PREmail:
smehler@prosperaenergy.comWebsite: 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 the 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.
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