Prospera Energy Inc. announces cash flow optimization

(MENAFN – GlobeNewsWire – Nasdaq) CALGARY, Alberta, Oct. 3, 2024 (GLOBE NEWSWIRE) – Prospera Energy Inc. (PEI: TSX-V; OF6A: FRA) (” Prospera “or” Corporation “)

Prospera Energy Inc. (PEI) is pleased to announce the prompt and full repayment of its $3,430,000 high-interest financing at 16% and Gross Overriding Royalty Rate (GORR). Repurchasing GORR takes advantage of the early payment discount and eliminates the risk of higher royalties. The GORR buyout also meets the Company’s senior debt requirements.

In addition to settling GORR financing, Prospera has also made significant progress in reducing liabilities. The Company reduced its outstanding AP liabilities from ~$20.5 million as of December 31, 2023 to ~$16.0 million, demonstrating a strong commitment to improving its financial position while continuing to advance its strategic growth initiatives. The repayment of the GORR financing enables Prospera to focus on ongoing development to increase production to optimize cash flow, and favorable commodity prices allow PEI to more effectively meet its current liabilities.

Prospera continues to produce medium-light crude oil and has completed a 4-well drilling program in the Alberta medium-light crude waterway. Geophysical logs confirmed the presence of oil deposits in all deviated wells. The first medium-oil horizontal well hit an excellent, eight-hundred-meter-long porous reservoir with oil slicks in the lateral part. The DST test of the horizontal well showed strong fluid flow of over 50 m3/d with 50% oil loss. The oil quality is 26 to 30 API degrees. So far, three new oil deposits have been discovered. Operational activities are focused on bringing these wells into production, optimizing well run time, accelerating the horizontal transformation of heavy oil and improving the recovery of basic heavy oil properties.

About Prosper

Prospera is a publicly traded energy company based in Western Canada, specializing in the exploration, development and production of crude oil and natural gas. Prospera focuses primarily on optimizing hydrocarbon recovery from older deposits through environmentally safe and efficient reservoir development methods and production practices. Prospera was restructured in the first quarter of 2021 to become profitable and compliant with regulatory, environmental, municipal, landowner and service requirements.

The company is undergoing a three-stage restructuring process, the aim of which is to prioritize profitable operations while utilizing production capacity and reducing liabilities. Prospera has completed the first phase by optimizing low-hang options, achieving free cash flow while ensuring safe operating conditions while remaining compliant. Currently, Prospera is implementing the second phase of the restructuring process, i.e. horizontal transformation, the aim of which is to accelerate growth and take over a significant amount of oil (400 million barrels). These horizontal drilling operations allow PEI to reduce its environmental and surface impact by eliminating numerous vertical drilling leases along the side path. Phase III of Prospera’s redesign strategy involves optimizing data recovery using EOR applications. In addition, Prospera will pursue an acquisition strategy aimed at diversifying its product range and developing its core business area. Its goal is to obtain 50% light oil, 40% heavy oil and 10% gas.

The Corporation continues to make efforts to minimize its impact on the environment. Additionally, efforts to reduce and ultimately eliminate emissions, along with implementing innovative ESG methods to improve API quality, thereby achieving higher margins and eliminating the need for diluents.

Further information:

Shawn Mehler, PR
Email: …
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Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s future operations 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 the Company’s future plans and objectives, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and that 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 them because Prospera can give no assurance that they will prove to be correct. Because forward-looking statements address future events and conditions, by their nature they involve inherent risks and uncertainties. Actual results may 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 generally (e.g., development, exploration and production operational risks; delays or changes in plans for exploration and development projects or capital expenditures; uncertainty in reserve estimates, uncertainty in estimates and forecasts regarding production, costs and expenses, and health, safety and environmental risks), fluctuations in commodity prices and exchange rates, and uncertainties resulting from potential delays or changes in plans for exploration and development projects or capital expenditures.

The reader is cautioned that the assumptions used in preparing any forward-looking information may prove to be incorrect. Events or circumstances could cause actual results to differ materially from those anticipated as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond Prospera’s control. As a result, Prospera cannot guarantee that any forward-looking statements will be realized 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 it was prepared, may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Prospera undertakes no obligation to publicly update or revise any forward-looking statements contained herein, 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.

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