Prospera Energy Inc. (“Prospera” or the “Company”) (TSX.V: PEI,
OTC: GXRFF, FRA: OF6B, OF6B.SG, OF6B.F, OF6B.BE).
Prospera has completed the drilling of four
horizontal wells of the ten well multi-pad infill drill program.
These wells encountered structure and pay as expected with
excellent oil show throughout the pay. The drilling technique
tweaked from the pilot wells were executed efficiently and ahead of
schedule. High praises to Lasso Drilling Corporation for the
effective synergy with Prospera to attain efficiency. These drilled
horizontals are being completed and tied-in to existing
infrastructure. Turnaround time to bring the production online is
approximately two to three weeks; two horizontal wells are already
completed. The production will be brought on gently initially to
optimize recovery due to the heavier fluid properties. The full
deliverability can be attained, approximately, over a three-month
period. The next set of four horizontals are to commence within one
week, barring any weather-related delays.
This multi-pad infill drill program stems from a
comprehensive geological, seismic, and reservoir management
delineation. The infill program is designed to optimize recovery
with optimum wells in a cost-effective manner, while also aligning
with planned enhanced and improved recovery techniques. As
previously announced, this ten well program can approximately add
an additional 750 bpd at a low decline to Prospera’s current
900+boepd. This infill development is intended to accelerate
production and recovery to capture the significant remaining heavy
oil reserves (400 million bbls).
The medium-light oil spud will follow the heavy
oil horizontal well transformation from vertical wells in the
latter part of this month. These slanted drills are awaiting the
preparation of the new leases, surface facilities, and connecting
pipelines. The medium-light oil development entails six to eight
directional wells that can add an additional 600bpd (gross) at 50%,
WI diversifying Prospera’s product mix and improving margin.
Overall, this Phase 2 development plan will
allow Prospera Energy to become a low-cost producer with a
significant increase in production. Restructured Prospera primary
focus subsequent to increased production and corresponding revenue
is to address all legacy arrears (especially, land owners &
local community vendors), stay current with payables, and maintain
services with comparable terms. Meanwhile, PEI will continue to
execute its liability management plan to reduce the asset reduction
obligations.
Interest Payable Reduction
Settlement
PEI announces that the Corporation has accrued
indebtedness to the Corporation’s convertible debenture holders
(the “Creditors”) in the amount of $376,050.76 (the “Debt”) for
interest expenses. The Corporation has the option to pay Creditors
interest in either cash or in shares at market price, at the
Corporation’s discretion, and has agreed to settle the Debt by the
issuance of fully paid common shares in the capital of the
Corporation (“Common Shares”).
This interest payable will reduce the current
liabilities, in turn further improving its current ratio and
liabilities related to the settlement of historical arrears. The
Corporation intends to settle the Debt at a price per Common Share
of $0.105, for an aggregate amount of 3,581,434 Common Shares. The
common shares will be subject to a four-month hold period. The
transaction is subject to the approval of the TSX Venture
Exchange.
About Prospera Energy Inc.
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 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. Phase III of Prospera’s corporate
redevelopment strategy will focus on continuing the company’s
horizontal modular development to appreciate production and
optimize recovery of remaining reserves.
Prospera intends to implement full-scale EOR
applications based on the results of its Phase II pilot program,
which is forecasted to optimize recovery by greater than 10%.
Prospera also intends to continue its acquisition strategy to
diversify its product mix. 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, please
contact:
Shawn Mehler, PR
shawn@prosperaenergy.comwww.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. Th 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.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/cb97d755-cbd4-4073-b783-26a2979c3486
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