PROSPERA: IS IT NOW SET FOR GROWTH AFTER THE TURNAROUND?

As a reminder, Warren Buffett first invested in Occidental Petroleum when the oil company faced difficulties a few years ago. The turnaround was successful, and today, Occidental is one of Berkshire Hathaway’s top 5 shareholdings. Prospera Energy is, of course, much smaller than Occidental, but the growth story has only just begun. The turnaround has been achieved in recent years with a new management team. The Company is concentrating on the production of medium and light oil. In the past third quarter, the Canadians slightly increased turnover to around CAD 4 million. Despite the low oil price, the operating result amounted to CAD 1.3 million.

A few days ago, Prospera Energy announced an important milestone for revenue and earnings growth in 2024. Another well was put into operation. After stabilization, it should be possible to produce around 150 barrels per day. Another well with similar production potential is to be commissioned by the end of the year. Due to the successful development, Prospera expects the daily gross production rate to exceed 1,800 barrels of oil equivalent by the end of the year. This would exceed the annual target. The Company is currently valued at around CAD 36 million on the stock exchange. Given current production and potential growth in the coming years, this seems anything but a lot. The Company aims not only to advance its own drilling program but also to grow through acquisitions.