Restructured Prospera Energy announces Q2 2023 financials with continued improvements to operating performance
27 Juillet 2023 - 8:07AM
Prospera Energy Inc. ("
Prospera" or the
"
Corporation") (PEI: TSX-V; OF6B: FRA)
Prospera announces its second quarter 2023
financial and operating results. In Q2 PEI rebounded to 478 boe/d
(603 boe/d gross) and net revenue of $3.1M from Q1 production
shortfalls caused by extreme cold weather. Prospera is pleased to
announce the financial milestones achieved as follows:
-
Realized positive Operating Netback of $1,094,364 ($25.14/boe) in
Q2 compared to -$549,618 (-$20.72/boe) in the first quarter of
2023.
-
Operating Expenses were reduced to $33.13/bbl in Q2 2023 compared
to Q2 2022 of $47.33/bbl.
-
PEI realized average Sales Prices of $69.87/boe in Q2 2023,
compared to $58.87/boe in Q1. PEI Oil prices have further increased
to ~$75-80/boe and Prospera anticipates stable sale prices for the
remainder of the year.
-
Raised $3,015,000 through an 8% debt with equity bonus offering. In
Q2, PEI has received $1,494,950 through warrant exercises.
-
Q2 Restructuring efforts continue to improve Prospera’s balance
sheet:
-
Further contributed to a reduction of Total Current Liabilities by
$5.8 million from December 31, 2022.
-
Increased Property and Equipment balance of $38.4 million from
$35.8 million on December 31, 2022.
-
Reported a positive Shareholders Equity balance of $0.6 million
(for the first time since Q3 2016).
Operating Netback |
|
Q2 2023 |
|
Q2 2022 |
|
|
|
|
|
Total Petroleum and Natural Gas Sales Revenue |
$ |
3,041,561 |
$ |
4,204,416 |
Transportation Costs |
|
(162,305) |
|
(174,680) |
Royalties |
|
(342,507) |
|
(695,104) |
Operating Costs |
|
(1,442,385) |
|
(1,583,369) |
Operating Netback |
|
1,094,364 |
|
1,751,262 |
Operating Netback |
|
Q2 2023 |
|
Q2 2022 |
|
|
|
|
|
Sales Revenue |
$ |
69.87 |
$ |
125.78 |
Transportation Costs |
|
(3.73) |
|
(5.22) |
Royalties |
|
(7.87) |
|
(20.78) |
Operating Costs |
|
(33.13) |
|
(47.33) |
Operating Netback |
$ |
25.14 |
$ |
52.44 |
Assets |
|
June 30, 2023 |
|
December 31, 2022 |
Current assets |
|
|
|
|
Cash |
$ |
811,820 |
$ |
1,050,960 |
Trade and other receivables |
|
3,439,948 |
|
838,500 |
Prepaid expenses and deposits |
|
285,906 |
|
59,788 |
Inventory |
|
465,804 |
|
449,849 |
Total current assets |
|
5,003,478 |
|
2,399,097 |
Non-current assets |
|
|
|
|
Trade and other receivables |
|
1,618,104 |
|
2,844,129 |
Deposits |
|
903,853 |
|
918,902 |
Property and equipment |
|
30,291,472 |
|
28,984,586 |
Right-of-use |
|
582,874 |
|
661,941 |
Total assets |
$ |
38,399,781 |
$ |
35,808,655 |
Selected financial and operational information
outlined below should be read in conjunction with the Company’s
financial statements and related management’s discussion and
analysis (MD&A) for the quarter ended June 30, 2023.
PEI has submitted its quarter-end financial
information for 2023, within the Company's issuer profile on SEDAR
at www.sedar.com.
Q3/Q4 2023 Outlook
Prospera Energy Inc. has announced a mid-August
spud of PEI’s 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 million 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.
Restructured Prospera continues to increase its
asset value by executing its development program to capture the
significant remaining reserves. Prospera is positioned for 2023
record growth after 2022 transformational year of production,
revenue, and profitability.
Incentive Options Granted Summary
In June 2023, Prospera Energy granted incentive
share options to maintain continuity to execute the restructured
Prospera’s development plans.
Prospera has issued a total of 100,000 options
at $0.11 and 1,100,000 options at $0.10 pursuant to its incentive
stock option plan (“Plan”) to integral, employees, directors and
consultants. Each option entitles the holder to subscribe for one
common share of the Company for a period of 5 years, subject to the
terms of the Plan. The total dilution associated with these options
is less than 1% of total shares outstanding.
The issuance of PEI’s share options minimizes
the rise in the general administration expenses. While in the
coming months the incentivized PEI team can focus on executing
PEI’s high return capital development program ARO reduction
liability management ratio plan in a safe and environmentally
friendly manner.
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 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.
Prospera Energy (TSXV:PEI)
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