Prospera Energy Inc. Exceeds 2023 Year-End
Target with 2,200 Boepd Capability Leading to Robust 2024
Development Outlook.
Calgary, Alberta, January
5th, 2024 -- InvestorsHub NewsWire -- Prospera Energy Inc.
("Prospera" or the "Company") (TSX.V: PEI, OTC: GXRFF, FRA: OF6B)2023 was a highly successful
year for the restructured Prospera Energy Inc. PEI drilled,
completed and tied-in nine horizontal wells in heavy oil reservoir
with initial production rates exceeding expectations at 100+bpd per
well. The ninth well was rig released on December 24th and was
brought online on December 28th. In addition, PEI drilled a
directional well accessing medium-light oil flowing at 500+ Bpd.
Gross peak rates of 1,800 boepd were attained prior to year-end,
excluding the production of the recently drilled and completed
horizontals, and the shut-in production for drilling. This
production was brought on throughout the month resulting in a
monthly average of approximately 1,300 gross boepd. Currently, the
total production capability of Prospera is 2,200 boepd that will be
optimized in the next few weeks barring any extreme winter weather
conditions.
Prospera was effectively
able to fund the 2023 development plan with minimal dilution. The
Company raised a total of $16.1 million through the issuance of
multi-year promissory notes, GORR financing, private placement, and
the exercise of previously issued warrants. A significant amount of
these funds was raised through insider participation and strategic
investment.
PEI's future development
plans are substantiated and encouraged by the 2023 development
drilling and production results. Therefore, in 2024, Prospera is
proposing robust development and acquisition plans to attain year
end production rates of 5,000 boepd. Furthermore, PEI plans to
pilot and implement Enhanced Oil Recovery (EOR) methods and add to
existing production levels. The strategic acquisitions are to
expand the core reserve base and to diversify the product mix.
Funding for Prospera's 2024 development program will be facilitated
from cash flow generated from existing operations, debt, and equity
financing through private placement.
These successful
developments translate to significant additional reserve and
appreciation of PEI net present value (NPV) for the year end 2023.
This production increase will translate to sustainable revenue for
operations, development and remains steadfast in its commitment to
eliminating the legacy arrears to landowners, regulators, and the
local community anticipated by the year end 2024. The
company's Heavy Oil Joint Venture partners are in
receivables and therefore in default position until remedied.
Consequently, Prospera assumes 100% of the cash
flow received from the partner's share of oil
sales.
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.
