CALGARY, Alberta, July 27, 2023 (GLOBE NEWSWIRE) — Prospera Energy Inc. (“Prospera” or the “Corporation“) (PEI: TSX-V; OF6B: FRA)
Prospera announces its second quarter 2023 financial and operating results. In Q2 PEI rebounded to 478 boe/d (603 boe/d gross) and net revenue of $3.1M from Q1 production shortfalls caused by extreme cold weather. Prospera is pleased to announce the financial milestones achieved as follows:
- Realized positive Operating Netback of $1,094,364 ($25.14/boe) in Q2 compared to -$549,618 (-$20.72/boe) in the first quarter of 2023.
- Operating Expenses were reduced to $33.13/bbl in Q2 2023 compared to Q2 2022 of $47.33/bbl.
- PEI realized average Sales Prices of $69.87/boe in Q2 2023, compared to $58.87/boe in Q1. PEI Oil prices have further increased to ~$75-80/boe and Prospera anticipates stable sale prices for the remainder of the year.
- Raised $3,015,000 through an 8% debt with equity bonus offering. In Q2, PEI has received $1,494,950 through warrant exercises.
- Q2 Restructuring efforts continue to improve Prospera’s balance sheet:
- Further contributed to a reduction of Total Current Liabilities by $5.8 million from December 31, 2022.
- Increased Property and Equipment balance of $38.4 million from $35.8 million on December 31, 2022.
- Reported a positive Shareholders Equity balance of $0.6 million (for the first time since Q3 2016).
| Operating Netback | Q2 2023 | Q2 2022 | ||
| Total Petroleum and Natural Gas Sales Revenue | $ | 3,041,561 | $ | 4,204,416 |
| Transportation Costs | (162,305) | (174,680) | ||
| Royalties | (342,507) | (695,104) | ||
| Operating Costs | (1,442,385) | (1,583,369) | ||
| Operating Netback | 1,094,364 | 1,751,262 | ||
| Operating Netback | Q2 2023 | Q2 2022 | ||
| Sales Revenue | $ | 69.87 | $ | 125.78 |
| Transportation Costs | (3.73) | (5.22) | ||
| Royalties | (7.87) | (20.78) | ||
| Operating Costs | (33.13) | (47.33) | ||
| Operating Netback | $ | 25.14 | $ | 52.44 |
| Assets | June 30, 2023 | December 31, 2022 | ||
| Current assets | ||||
| Cash | $ | 811,820 | $ | 1,050,960 |
| Trade and other receivables | 3,439,948 | 838,500 | ||
| Prepaid expenses and deposits | 285,906 | 59,788 | ||
| Inventory | 465,804 | 449,849 | ||
| Total current assets | 5,003,478 | 2,399,097 | ||
| Non-current assets | ||||
| Trade and other receivables | 1,618,104 | 2,844,129 | ||
| Deposits | 903,853 | 918,902 | ||
| Property and equipment | 30,291,472 | 28,984,586 | ||
| Right-of-use | 582,874 | 661,941 | ||
| Total assets | $ | 38,399,781 | $ | 35,808,655 |
Selected financial and operational information outlined below should be read in conjunction with the Company’s financial statements and related management’s discussion and analysis (MD&A) for the quarter ended June 30, 2023.
PEI has submitted its quarter-end financial information for 2023, within the Company’s issuer profile on SEDAR at www.sedar.com.
Q3/Q4 2023 Outlook
Prospera Energy Inc. has announced a mid-August spud of PEI’s phase 2 restructured development program intended to increase production. The Phase 2 development entails the drilling of 10 horizontal wells in heavy oil and 8 slanted wells in medium-light oil to accelerate growth and capture the significant remaining reserves (400 million bbls). These horizontal laterals and slanted wells will allow PEI to increase production by approximately 1,000bpd with recovery of approximately 100Mstb per well. PEI will reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path.
Restructured Prospera continues to increase its asset value by executing its development program to capture the significant remaining reserves. Prospera is positioned for 2023 record growth after 2022 transformational year of production, revenue, and profitability.
Incentive Options Granted Summary
In June 2023, Prospera Energy granted incentive share options to maintain continuity to execute the restructured Prospera’s development plans.
Prospera has issued a total of 100,000 options at $0.11 and 1,100,000 options at $0.10 pursuant to its incentive stock option plan (“Plan”) to integral, employees, directors and consultants. Each option entitles the holder to subscribe for one common share of the Company for a period of 5 years, subject to the terms of the Plan. The total dilution associated with these options is less than 1% of total shares outstanding.
The issuance of PEI’s share options minimizes the rise in the general administration expenses. While in the coming months the incentivized PEI team can focus on executing PEI’s high return capital development program ARO reduction liability management ratio plan in a safe and environmentally friendly manner.
About Prospera
Prospera is a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in Western Canada. Prospera will use its experience to develop, acquire, and drill assets with potential for primary and secondary recovery.
For further information:
Shawn Mehler, PR
Email: [email protected]
Website: www.prosperaenergy.com
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “anticipate,” “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, 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 correct. Since forward-looking statements address 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 in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Prospera. As a result, 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. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. 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 does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
Neither 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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