Letter to Prospera Shareholders: Eighteen Months of Transformational Execution

Prospera Energy Inc. (TSXV: PEI) (OTC Pink: GXRFF)
Calgary, Alberta--(Newsfile Corp. - May 1, 2026) -

Dear Prospera Shareholders,

The last eighteen months have been the most consequential in Prospera Energy's history. Since management and board restructured on October 31, 2024, we have spent every day building the operational, strategic, and cultural foundation of a disciplined heavy oil company designed to compound shareholder value for years to come. This letter is an account of that work and why I believe Prospera is primely positioned to continue to deliver on the strategy we have so relentlessly built.

Eighteen months ago, our new management team took over a Company with promising assets carrying significant latent value waiting to be unlocked. We acted decisively and without delay. We streamlined personnel, re-engineered operations, curated business plans from the ground up, and made the strategic call to rebuild Prospera around a new and reliable business strategy focused on low-risk, capital-efficient reactivations. All of this was in a $60-70 WTI pricing environment during 2025 which left no margin for error.

We have completed 64 workovers and brought 21 wells back online through reactivations. At Luseland, production has climbed from 54 BOE/d to 258 BOE/d, a 378% increase in eighteen months, driven entirely by reactivations, optimizations, and proactive management. Beneath us sits more than 400 million barrels of original oil in place, with current recovery factors at just 2 to 8 percent across much of the pool. More than 140 reactivation targets remain in our inventory, 41 of them ranked Tier 1. Every well we bring back online validates our thesis and generates exceptional netbacks, and every barrel we recover today pays for the capital to bring online the barrels we recover through additional reactivations. These reactivations remain the highest risk-adjusted-return use of capital available to us, and we will keep deploying as such with discipline and conviction.

The price of oil is not within our control. The cost at which we produce a barrel is. Through tighter field execution, renegotiated service agreements, and the operational discipline that now runs through every level of this Company, we have rebuilt our cost structure to into a durable platform for disciplined growth. That discipline protected us through the commodity pricing downturn and is what makes today's incredible price environment so meaningfully accretive with operating cash flows per barrel increasing 700% between February and March, and April commodity pricing trending even higher. As we continue in 2026 after seasonal spring break-up, our capital program is straightforward: continue executing the reactivation queue at Luseland, hold stable base production at Cuthbert and Hearts Hill, and convert every dollar of free cash flow into the next well brought online while bringing down field-operating costs.

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