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Prospera Energy Inc. Announces 2023 Financial Results

Prospera Energy Inc.Prospera Energy Inc.

Prospera Energy Inc.

CALGARY, Alberta, June 1, 2024 (GLOBE NEWSWIRE) — Prospera Energy Inc. (“Prosperity“or the”Company“) (PEI: TSX-V; OF6A: FRA)

2023 was a transformational year for Prospera as it pivoted to horizontal well technology in Saskatchewan’s heavy oil fields. Additionally, initiate the development of medium/light oil in order to diversify from a primarily heavy oil producer. The company has successfully drilled, completed and tied 9 horizontal wells in its Saskatchewan heavy oil fields and 1 inclined well in its Alberta medium/light oil field. Prince Edward Island achieved a gross peak throughput of over 1,800 boe/d, with total capacity estimated at 2,200 boe/d. However, weak commodity prices and cold weather conditions in the first quarter of 2023 offset Prince Edward Island’s production increases.

Financial highlights for 2023 include:

  • Prince Edward Island achieved average net sales of 723 boe/d (847 boe/d gross) in the fourth quarter of 2023, an increase of 86% from fourth quarter 2022 levels, and sales net average of 505 boe/d (621 boe/d gross) in 2023, an increase of 18% compared to 2022 levels.

  • Prince Edward Island achieved average sales prices of $71.48/boe in 2023, compared to $89.13/boe in 2022.

  • Achievement of positive net operating income of $3,356,774 in 2023.

  • Highlights from the 2023 Prince Edward Island Third-Party Reserves Report include:

    • Before taxes, PDP reserves increase by 508%, from $4.4 million to $27.1 million in 2023 using a 10% discount rate.

    • Before taxes, 2P reserves increased by $60.8 million from $72.5 million to $133.3 million in 2023 using a 10% discount rate.

    • The total value of proven and probable reserves increased by 25%, from 4,306 to 5,403 Mboe.

  • In 2023, Prince Edward Island raised $16 million in financing while extending maturing convertible debt of $1.5 million until 2025, enabling capital development of the Prince Edward Island without affecting working capital:

    • $9.1 million through the exercise of warrants, at an average price of $0.068/share.

    • $3.6 million through the issuance of promissory notes over two years.

    • $3.0 million through the issuance of a GORR.

    • $1.3 million through the issuance of units composed of common shares and warrants.

  • Prospera’s capital development program included 9 horizontal heavy oil wells and 1 vertical medium oil well and brought in an additional 1,000 b/d of additional production capacity.

  • Restructuring efforts continue to improve Prospera’s balance sheet:

    • Increase in property, plant and equipment balance to $38.8 million from $29.0 million as of December 31, 2022.

    • Positive equity balance of $1.2 million compared to a deficit of $6.2 million as of December 31, 2022.

Operational netback

2023

2022

Total oil and natural gas sales

13,183,464

13,904,287

Transport costs

(1,083,591

)

(645,817

)

Royalty fee

(1,365,520

)

(1,847,917

)

Operating costs

(7,377,579

)

(6,926,832

)

Net operating income

3,356,774

4,483,721

Dollar per BOE

2023

2022

Sales

71.48

89.17

Transport costs

(5.88

)

(4.14

)

Royalty fee

(7.41

)

(11:85 a.m.

)

Operating cost

(40.10

)

(38.66

)

Net operating income

18.09

34.52

Restructured Prospera continues to increase the value of its assets by executing development programs to capture significant remaining reserves. In 2023, Prince Edward Island saw a $12.4 million increase in total assets.

ASSETS

2023

2022

Current assets

Species

$

118,933

$

1,050,960

Customers and other debtors

3,244,596

838,500

Prepaid Expenses and Deposits

548 443

59,788

Inventory

521 426

449,849

Total current assets

4,433,398

2,399,097

Non-current assets

Transactions and receivables

4,387,826

2,844,129

Deposits

1,015,400

918 902

Property and equipment

38,827,883

28,984,586

Right of use

503 807

661,941

Total assets

$

49,168,314

$

35,808,655

PEI has submitted its year-end financial information for 2023, which can be presented in the company’s issuer profile on SEDAR+ at www.Sedarplus.ca.

Outlook 2024

The transformational development of 2023 has yielded initial production rates well above planned production rates. As a result, the asset value of Prospera increased to $133 million (NPV10-2P 2023 reserve value). This large increase results from the initial exploitation of the medium oil property and only one of the three main oil properties. The benefit of leveraging Prospera is significant. In 2024, Prospera will continue to expand its transformational development by accessing untapped reserves while reducing its environmental footprint. Additionally, expand these developments to remaining prime properties that have much larger reserves in place.

About Prospera

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 primarily focuses on optimizing hydrocarbon recovery from existing fields through efficient and environmentally friendly 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 utility requirements.

The company is in the midst of a three-step restructuring process aimed at prioritizing profitable operations while appreciating production capacity and reducing liabilities. Prospera completed the first phase by optimizing easy opportunities, achieving free cash flow, while bringing the operation into safe operating conditions while remaining compliant. Currently, Prospera is executing phase II of the restructuring process, the horizontal transformation intended to accelerate growth and capture the significant existing oil (400 million barrels). These horizontal wells allow Prince Edward Island to reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the side path. Phase III of Prospera’s corporate redevelopment strategy involves optimizing recovery through EOR applications. Furthermore, Prospera will continue its acquisition strategy aimed at diversifying its product mix and expanding its core business. Its goal is to achieve 50% light oil, 40% heavy oil and 10% gas.

The Company continues to make efforts to minimize its environmental footprint. Additionally, efforts are being made to reduce or even eliminate emissions, while pursuing innovative ESG methods to improve API quality, thereby achieving higher margins and eliminating the need for diluents.

For more information:

Shawn Mehler, PR
Email: [email protected]
Website: www.prosperaenergy.com

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”, “expect” 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 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 accurate. Because forward-looking statements relate to 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 generally (e.g. operational risks relating to development, exploration and production; delays or changes in plans regarding exploration or development projects or capital expenditures; uncertainty of estimates and projections relating to production, costs and expenditures, as well as risks; for health, safety and the environment), fluctuations in commodity prices and exchange rates and uncertainties resulting from delays or potential changes in plans for exploration or development projects or capital expenditures .

The reader is cautioned that assumptions used in preparing any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those anticipated, due to numerous known and unknown risks, uncertainties and other factors, many of which are beyond Prospera’s control. Therefore, 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. This information, although considered reasonable by management at the time of its preparation, 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 included forward-looking statements, whether as a result of new information. , future events or otherwise, except to the extent expressly required by Canadian securities laws.

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.