CALGARY, Alberta, Aug. 8, 2022 (GLOBE NEWSWIRE) — Prospera Energy Inc. (“Prosper” or the “corporation“) (PEI: TSX-V; OF6B: FRA) is pleased to release its financial and operating results for the first quarter of 2022. The selected financial and operating information described below should be read in conjunction with the financial statements of the company and related management’s discussion and analysis for the quarter ended March 31, 2022.
Highlights of the first quarter of 2022:
During the first quarter of 2022, PEI continued to optimize wells to increase production while addressing all legacy operational, financial and environmental non-compliances. During this quarter, the corporation achieved consistent production, continued to reduce property liability arrears (property tax, space lease, trade payables) and raised $1.5 million through two private placements. Overall, PEI continues to improve its financial position and liquidity while positioning the Corporation for accelerated growth and development.
Achieved revenues of CAD $3.5 million, up 414% YoY 2021Q1 Average production rate was 475 boe/d net in 1Q 2022, up 200% YoY 2021 reflecting continued leverage from recent working interest acquisitions Average realized price of $81.07/boe in Q1 2022 vs $47.22/boe in Q1 2021, with a net yield of ‘positive exp of $1.1m ($25.21/bop), $10.50/bop after G&A + interest. It earned positive EBITDA of $195,590 in Q1, up from negative $195,590. $209,276 in the same period in 2021 Raised $1,478,573 through private placements of equity and convertible debt demonstrating continued ability to improve liquidity and further reduce legacy liabilities and AROs. Completed initial planning, engineering and procurement of the Saskatchewan horizontal well program; The commercial demonstration program ran in the second quarter of 2022
Summary of operating income:
PEI’s first quarter 2022 financial information is available under the company’s issuer profile on SEDAR at www.sedar.com.
Message to shareholders
PEI continues to restructure in order to appreciate and stabilize production with a secure operational infrastructure and reliable service providers. Legacy backlogs and the perception of non-compliance have been difficult obstacles to overcome. However, PEI’s operational, financial and environmental restructuring efforts have been attributed to establishing an effective relationship with critical service providers. The 2021 year-end financial audit identified significant internal controls and procedures that are being incorporated as policies, thereby restructuring accounting practices to be fast, accurate and reliable in order to be compliant and cost-effective.
During the second quarter of 2022, PEI piloted the horizontal reentry to customize the drilling process and mechanical adjustments to be compatible with formation characteristics and conditions. Production and geological risks are low due to well control, interpreted 3D seismic and production history. These pilots will design the horizontal program to begin the second phase of PEI development to capture the remaining significant reserves. PEI is pleased to announce that the horizontal pilot wells have been licensed and have begun running re-entry test pilot horizontals to confirm PEI’s geological and engineering assessments. The pilots will also help understand the scope of the economics of the drilling program. PEI is looking forward to delivering the results of the pilots.
Prospera is a public oil and gas exploration, exploitation and development company focused on conventional oil and gas reservoirs in Western Canada. Prospera will use its expertise to develop, acquire and drill assets with primary and secondary recovery potential.
For more information:
Shawn Mehler, PR
This press release contains forward-looking statements relating to the Corporation’s future operations and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “could,” “should,” “anticipate,” “expect” and similar expressions. All statements, other than statements of historical fact, included in this release, including, without limitation, statements about the Corporation’s future plans and objectives, are forward-looking statements that involve risks and uncertainties. There can be no assurance that these statements are accurate and that actual results and future events may differ materially from those anticipated in these 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 cannot guarantee that they are correct. Because 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 (for example, 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 related to production, costs and expenses, and risks to health, safety and the environment), price fluctuations of commodities and exchange rates and uncertainties arising from possible delays or changes in plans with respect to exploration or development projects or capital expenditures.
The reader is cautioned that the assumptions used in the preparation of any forward-looking information may turn out to be incorrect. Events or circumstances may cause actual results to differ materially from those anticipated as a result of numerous risks, uncertainties and other known and unknown factors, many of which are beyond Prospera’s control. As a result, Prospera cannot guarantee that any forward-looking statements will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. This information, although management believes it to be reasonable at the time of preparation, may be incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this press 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 of the forward-looking statements included, whether as a result of new information . , future events or otherwise, except as expressly required by Canadian securities law.
Neither the TSXV nor its regulation service provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.