Transformed & Restructured Prospera Transitioning to Profitability in 2024

CALGARY, Alberta, Feb. 07, 2024 (GLOBE NEWSWIRE) -- Prospera Energy Inc. (“Prospera” or the “Company”) (TSX.V: PEI, OTC: GXRFF, FRA: OF6B, OF6B.SG, OF6B.F, OF6B.BE)

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 heavy oil horizontal 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.