PROSPERA ENERGY – THE FINANCING FOR 2024 IS IN PLACE

Due to the rapidly growing population and the base effect in the global economy, energy consumption will remain high. Canada is a rich resource country with billions of oil and gas barrels in underground rock formations and oil sands. Technological possibilities allow these reserves to be exploited without causing major environmental damage. On the contrary, many smaller exploration and production companies create jobs in regions with low population density and historically low economic potential.

One of the up-and-coming Canadian oil producers is Prospera Energy. The Company will have increased its daily production to around 1,800 barrels of oil equivalent (BOE) by the end of the year following several re-activations of drilling fields. Seven horizontal wells were recently drilled, with three more expected before the end of the year. Prospera was completely restructured in 2023 and has a new CEO, Samuel David. He has done a great job and, in addition to operational progress, has also been able to demonstrate success on the financing side.

Prospera has completed a CAD 3 million financing with the participation of White Tundra, which includes a 1% royalty on Prospera’s revenue from the Cuthbert properties and can be repurchased within 12 months for CAD 3.48 million. Amortization payments will increase by approximately 4.6% after November 30, 2024, unless at least CAD 250,000 is received from royalties each quarter. Funds from the transaction will be used to complete the horizontal well development program on the Company’s Cuthbert properties. The initial royalty rate of 1% up to and including November 30, 2024, will increase to 16% after that date up to and including May 31, 2025, and 22% after May 31, 2025, if the royalty has not been repurchased by then. In addition to the above financing, an additional CAD 583,000 was raised in a private placement.

Prospera intends to use the funds raised for drilling, completion and tie-in, as well as for reclamation costs and the continuation of environmental, social and governance initiatives. The Company is thus committed to maintaining a high ESG standard. Prospera Energy currently has 400 million shares in circulation, valuing the oil producer’s equity at CAD 32 million. Many projects are on the agenda for 2024. If the development continues as quickly as currently shown, the low company valuation should soon be history.