Prospera Energy Inc. Announces Q1 2022 Financial Results

CALGARY, Alberta, Aug. 08, 2022 (GLOBE NEWSWIRE) -- Prospera Energy Inc. ("Prospera" or the "Corporation") (PEI: TSX-V; OF6B: FRA) is pleased to release its Q1 2022 financial and operating results. 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 for the quarter ended March 31, 2022.

First Quarter 2022 Highlights:

In the first quarter of 2022 PEI continued to optimize wells to increase production while addressing all legacy non-compliance operationally, financially, and environmentally. During this quarter, the corporation successfully realized steady production, continued to reduce legacy liability arrears (property tax, surface lease, trades payable), 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 Revenue of $3.5 million CAD, an increase of 414% from the same period in 2021
• Q1 average production rate was net 475 boe/d in Q1 2022, a 200% increase from the same period in 2021 reflecting continued leverage of recent working interest acquisitions
• Realized average pricing of $81.07/boe in Q1 2022 vs. $47.22/boe in Q1 2021
• Reporting positive operating netback of $1.1 million ($25.21/boe), $10.50/boe after G&A + Interest 
• Achieved positive EBITDA of $195,590 in Q1 of 2022, up from a negative -$209,276 in the same period of 2021 
• Raised $1,478,573 through share and convertible debt private placements demonstrating continued ability to improve liquidity and further reduce legacy and ARO liabilities
• Completed initial planning, engineering, & procurement of the Saskatchewan horizontal well program; commercial demonstration program was executed in Q2 2022
  

Operating Income Summary:

PEI's Q1 2022 financial information is 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 safe operating infrastructure and reliable service providers. Legacy arrears and non-compliance optics have been difficult hurdles to overcome. However, PEI restructuring efforts operationally, financially, and environmentally have attributed to establishing an effective relationship with the critical service providers. Year-End 2021 financial audit identified significant internal controls and procedures that are being incorporated as policies, thus, restructuring accounting practices to be prompt, accurate, and reliable in order to be compliant and profitable.

In the second quarter of 2022, PEI has piloted re-entry horizontal to customize the drilling process and the mechanical tweaks to be compatible with the formation characteristics and conditions. The geological and production risks are low due to well control, interpreted 3D seismic, and production history. These pilots will architect the horizontal program to commence PEI's second development phase to capture the significant remaining reserves. PEI is pleased to announce pilots' horizontal wells are licenced and have begun executing the test pilot re-entry horizontals to confirm PEI engineering and geological assessments. The pilots will also assist in understanding the scope of the economics of the drilling program. PEI is looking forward to providing the results of the pilots.

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 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.