Prospera Energy Inc. Announces Cash Flow Optimization

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CALGARY, Alberta, Oct. 03, 2024 (GLOBE NEWSWIRE) — Prospera Energy Inc. (PEI: TSX-V; OF6A: FRA) (“Thrive“or”institution“)

Prospera Energy Inc. is pleased to… (PEI) announces the immediate full repayment of its financing of $3,430,000 at 16% high interest and gross controlling equity (GORR). A GORR buyback takes advantage of the early payment discount and eliminates the risk of increased royalties. This GORR repurchase also meets the company’s senior debt requirement.

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In addition to reconciling GORR financing, Prospera also made significant progress in reducing its accounts payable. The Company reduced its outstanding loan liabilities from ~$20.5 million at December 31, 2023 to ~$16.0 million, demonstrating its strong commitment to improving its financial position while continuing to advance its strategic growth initiatives. Repaying the GORR financing enables Prospera to focus on current development to ramp up production to improve cash flow, while commodity prices allow PEI to address current liabilities more efficiently.

Prospera continues to develop medium-light oil and has completed a 4-well drilling program in Alberta’s medium-light oil corridor. Geophysical records confirmed the presence of oil reservoirs in all deviated wells. The first horizontal intermediate oil well encountered an eight-hundred-meter excellent porosity reservoir with oil visible in the lateral section. This horizontal well DST test showed a robust flow of over 50 cubic meters per day of fluids at a 50% oil cut. Oil quality ranges from 26 to 30 API grade. Three new oil pools have been discovered so far. Operations focus on bringing these wells into production, improving well operation time, enhancing the horizontal transformation of heavy oil, and improving the extraction process in the basic heavy oil properties.

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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 is primarily focused on improving the process of recovering hydrocarbons from old fields through safe and efficient production methods and practices for developing reservoirs. Prospera was restructured in the first quarter of 2021 to become profitable and aligned with its regulatory, environmental, municipal, landowner and service stakeholders.

The company is in the midst of a three-phase restructuring process aimed at prioritizing cost-effective operations while valuing production capacity and reducing liabilities. Prospera completed Phase 1 by optimizing low outstanding opportunities, achieving free cash flow, while returning the operation to a safe operating condition, all while maintaining compliance. Currently, Prospera is implementing the second phase of the restructuring process, a horizontal transformation aimed at accelerating growth and acquiring existing significant oil (400 million barrels). These horizontal wells allow PEI to reduce its environmental and surface footprint by eliminating numerous vertical well leases along the bypass. The third phase of Prospera’s redevelopment strategy is to improve the recovery process through enhanced oil recovery applications. Furthermore, Prospera will continue its acquisition strategy to diversify its product mix and expand its core area. Its goal is to obtain 50% light oil, 40% heavy oil, and 10% gas.

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The company continues to make efforts to reduce its environmental footprint. In addition to efforts to reduce and ultimately eliminate emissions, along with innovative ESG approaches to enhance API quality, thus achieving higher 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 the future operations of the Company and other statements that do not represent historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “expect,” “anticipate” and similar expressions. All statements other than statements of historical fact contained in this release, including, without limitation, statements regarding the future plans and objectives of the Corporation, are forward-looking statements that involve risks and uncertainties. Such statements cannot be guaranteed to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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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 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 risks include, but are not limited to, risks associated with the oil and gas industry generally (e.g., operational risks in development, exploration and production; delay or change in plans in connection with exploration or development projects or capital expenditures; uncertainty about reserve estimates). certainty of estimates and forecasts relating to production, costs and expenditures, health, safety and environmental risks), fluctuations in commodity prices and exchange rates and uncertainties resulting from potential delays or changes in plans in connection with exploration or development projects or capital expenditures.

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The reader is cautioned that the assumptions used in preparing any forward-looking information may prove to be incorrect. Events or conditions may 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 statement will come true, and the reader is cautioned not to place undue reliance on any forward-looking information. Although such information is considered reasonable by management at the time of preparation, it may prove incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this news 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. or future events or OtherwiseExcept 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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