CALGARY, Alberta, July 04, 2024 (GLOBE NEWSWIRE) — Prospera Energy Inc. (“Prospera” or “Co., Ltd.(TSX.V: PEI, OTC: GXRFF, FRA: OF6B, OF6B.SG, OF6B.BE)
Prospera will announce its 2024 development drilling program to commence in mid-July. The initial focus is on multi-pad mid-oil infill directional wells, building on the positive drilling results in 2023. The 2023 capital expenditures for the first mid-oil well are expected to be paid off in approximately seven months, demonstrating effective program execution and an efficient return on capital. With existing infrastructure already in place, these follow-on infill mid-oil wells are expected to continue to maintain robust economics. The 2024 mid-oil drilling program will include infill development of two pools and the first drilling of a new pool.
Following mid-water drilling, horizontal conversion will continue to secure the remaining large heavy oil reserves, and multilateral development is also proposed for two other undeveloped core heavy oil assets. Enhanced Oil Recovery (EOR) has been initiated in pilot projects, in addition to enhanced recovery (IR) through horizontal wells and reservoir management.
Prospera's primary focus is to achieve production and cash flow stability through core asset optimization, infrastructure improvements and sound reservoir management. Additionally, PEI expects to leverage its joint venture receivables to increase its reported net working interest production and revenue levels.
The PEI 2024 Optimization and Development Program is being funded through $11 million of non-dilutive debt financing at a recently finalized interest rate of 12% and a two-year term. The capital will be specifically earmarked for the 2024 Development Program to support production and cash flow objectives, enhance the value of reserves, reduce past arrears and reduce regulatory and environmental violations. Assistance was provided to secure investment from a group of investors as part of White Tundra Investments' business development initiative in support of Prospera. No brokerage fees were paid to White Tundra in this transaction.
About Prospera
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's primary focus is optimizing hydrocarbon recovery from existing fields through environmentally safe and efficient reservoir development and production methods. Prospera restructured in the first quarter of 2021 to become more profitable and compliant with regulatory, environmental, municipal, landowner and service stakeholder requirements.
The company is undergoing a three-phase restructuring process aimed at prioritizing cost-efficient operations while evaluating production capacity and reducing debt. Prospera has completed the first phase by optimizing easy opportunities, achieving free cash flow and putting operations in a safe operating state while remaining compliant. Currently, Prospera is executing Phase II of the restructuring process, a horizontal transformation aimed at accelerating growth and acquiring remaining significant reserves (400 million barrels). These horizontal wells will allow PEI to reduce environmental and surface impacts by eliminating a large number of vertical well leases along the lateral pathway. Phase III of Prospera's corporate redevelopment strategy is to optimize recovery from EOR applications. In addition, Prospera will pursue an acquisition strategy to diversify its product mix and expand its core areas. Its goal is to achieve 50% light oil, 40% heavy oil and 10% gas.
PEI continues to strive to minimize its environmental impact, as well as strive to reduce and ultimately eliminate emissions, and pursue innovative ESG methods to improve API quality, resulting in higher profit margins and eliminating the need for diluents.
For more information:
Shawn Mehler, Public Relations
Email: investors@prosperaenergy.com
Website: www.prosperaenergy.com
Forward-Looking Statements
This press release contains forward-looking statements regarding our future operations and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “expects,” “anticipates” and similar expressions. All statements other than statements of historical facts included in this release, including, without limitation, statements regarding our future plans and objectives, are forward-looking statements that involve risks and uncertainties. There can be no assurance that these 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, Prospera can give no assurance that the forward-looking statements will prove correct and therefore undue reliance should not be placed on such statements. Because forward-looking statements relate to future events and circumstances, by their nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently expected due to a number of factors and risks, including, but not limited to, uncertainties resulting from risks associated with the oil and gas industry generally (such as operational risks in development, exploration and production, delays or changes in plans for exploration and development projects or capital expenditures, uncertainties in reserve estimates, and uncertainties in estimates and projections regarding production, costs and expenses, health, safety and environmental risks), fluctuations in commodity prices and currency exchange rates, and potential delays or changes in plans for exploration and development projects or capital expenditures.
Readers are cautioned that assumptions used in preparing the forward-looking information may prove to be inaccurate. Events or circumstances could cause actual results to differ materially from expectations as a result of a number of known and unknown risks, uncertainties and other factors, many of which are beyond Prospera's control. As a result, Prospera cannot give any assurance that forward-looking statements will come to pass, and readers are cautioned not to place undue reliance on forward-looking information. Such information, while believed to be reasonable by management at the time made, may prove to be inaccurate and actual results may differ materially from expectations. 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 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 as expressly required by Canadian securities legislation.
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.