Since 2021 Q1, Restructured Prospera has methodically executed the planned development phases and attained
drilling results exceeding expectations and substantiating the technical and economical applications. The nine
horizontal heavy oil new drills and one medium light oil deviated well delivered initial production exceeding the
expected initial production rates. Medium-light oil well was flowing at 500 bblspd and has stabilized to 300bblspd
substantially exceeding the anticipated 75bblpd. The heavy oil horizontal wells yielded on average 100bblpd of
initial production higher than expected. These results enabled Prospera to attain 2023-year end peak rates of
1,800 bblspd with the capability to 2,200bblpd. Further, Prospera executed the drilling program technically
efficiently and economically under budget. This resulted in a favorable capital payout in less than 6 months for
medium-light oil and an average payout of 9 months for the horizontal heavy oil wells. These results are expected
to increase the reserve valuation substantially from the 2022-year end 2P valuation of 72 million. The third party
2023 year-end reserve valuation is expected in the coming weeks.
Based on the 2023 successful drilling results, Prospera is positioned to increase production primarily in medium
light oil and continue the horizontal transformation to capture the substantial remaining heavy oil reserves. The
horizontals enable Prospera to reduce environmental footprint, operating expense and asset retirement liability
while appreciating production. PEI is proposing a robust 2024 capital development and acquisition plan to achieve
2024 year-end exit target rate of 5,000 boepd. The proposed capital program entails five geologically & seismically
delineated medium-light oil wells and fifteen low risk infill heavy oil horizontal wells. Also, includes light oil
acquisitions to diversify the heavy-light product mix to optimize margins (letter of intent to complete in Q2 of this
year). The 2024 development, ARO reduction and acquisitions are funded through existing cash flow and non-
dilutive credit facilities that are expected to be in place in the second quarter.
Prospera has bolstered the operations and production engineering team with experienced professionals to attain
and sustain a monthly average of 2,000 boepd by end of the first quarter. The 2,000 boepd per month is expected
to equate to gross revenue of $4.2 million CAD per month ($70/bbl) and $2.1 million field netback ($35/bbl). The
heavy oil horizontal wells are currently being optimized gradually, while the medium-light oil infrastructure is
being constructed to accommodate the current and planned 2024 drills. Meanwhile, the development teams are
preparing for the upcoming 2024 capital program to commence after break-up (in the latter part of Q2 2024).
In addition, significant ARO reduction projects are planned for the summer 2024 that include 40+ wells
abandonment and lease reclamations. Also, a facility/pipeline turnaround is planned, which includes maintenance
and calibration to accommodate the proposed development.
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
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: [email protected]
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(403) 454-9010
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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.