CALGARY, Alberta, Sept. 5, 2024 (GLOBE NEWSWIRE) — Prospera Energy Inc. (PEI: TSX-V; OF6A: FRA) (the “Prospero“or”Corporation“)

Prospera Energy is pleased to announce a 17% increase in the Working Interest (WI) in its core heavy oil assets. As part of this strategic initiative, Prospera Energy has entered into agreements with two joint venture partners. The restructured Prospera has increased its WI from an average of 35% WI to a current average of 95% WI.

Acquisition of 7% of the share capital:

Prospera Energy has acquired an additional 7% working interest in the Hearts Hill, Luseland and Cuthbert properties from the joint venture partner. In exchange, Prospera Energy has agreed to forgive all outstanding debts totaling $1,233,000 owed by the partner and 100% of the working interest in the non-primary Red Earth property, including all related liabilities.

Acquisition of 10% shares:

In addition, Prospera Energy has completed the acquisition of a 10% working interest in the Cuthbert, Luseland and Hearts Hill assets from another joint venture partner. The total purchase price for this transaction is CAD$600,000, consisting of CAD$400,000 in cash, to be paid over 16 months, and CAD$200,000 in equity through the issuance of 3,076,923 common shares of PEI.V at a price of $0.065 per share. These shares will be subject to a six-month waiting period and TSX approval. In addition, 3,076,923 warrants will be issued, which will allow the holder to acquire one common share of PEI.V at a price of $0.10 in the first year and $0.15 in the second year until expiration, also subject to TSX approval. As part of the agreement, Prospera Energy agreed to forgive all outstanding debts totaling $215,628 owed by the joint venture partner.

Prospera now has a 100% interest in the Luseland asset, which has the largest oil reserves, estimated at 280 million barrels of Original Oil in Place (OOIP). In addition, Prospera has acquired a 100% interest in the Hearts Hill property, which contains the highest API oil (17API) of the three heavy oil assets and has growth potential in the Sparky formation. The working interest in Cuthbert has increased from 69% to 86%. Both the Hearts Hill and Cuthbert assets have full infrastructure with facilities that can handle 75,000 barrels of emulsion each. This acquisition significantly increases Prospera’s control over its largest asset, enabling optimized development and management of these reserves.

Following the current medium oil development, Prospera has moved on to the Hearts Hill Bakken horizontal drilling program. Sparky Waterflood pilot, including re-completions and conversions, has commenced. Multilateral horizontal pilot drilling at Luseland is scheduled to commence following the Hearts Hill horizontal drilling. Enhanced recovery pilot has also commenced.

As part of White Tundra Investments’ business development initiatives in support of Prospera, assistance was provided, including analysis of the working interest valuation, transaction structuring strategy and acting as a liaison between the company and the JV partners. White Tundra continues to support Prospera through a number of initiatives and did not receive any fees as part of this transaction.

These strategic acquisitions further strengthen Prospera Energy’s position in the market for its core assets, consistent with the company’s ongoing commitment to maximizing shareholder value through focused growth and asset optimization.

About Prosper

Prospera is a publicly traded energy company headquartered in Western Canada specializing in the exploration, development and production of crude oil and natural gas. Prospera is primarily focused on optimizing the recovery of hydrocarbons from legacy reserves through environmentally sound and efficient reservoir development methods and production practices. Prospera was restructured in the first quarter of 2021 to become profitable and aligned with regulatory, environmental, municipal, landowner and utility stakeholders.

The company is in the midst of a three-phase restructuring process designed to prioritize profitable operations while increasing production capacity and reducing liabilities. Prospera has completed Phase I, optimizing low-yield opportunities, generating free cash flow, while bringing the business to safe operating conditions, all while maintaining compliance. Prospera is currently executing Phase II of the restructuring process, a horizontal transformation designed to accelerate growth and capture a significant amount of oil in place (400 million barrels). These horizontal wells allow PEI to reduce its environmental and surface footprint by eliminating numerous vertical drilling leases along the lateral path. Phase III of Prospera’s business turnaround strategy is designed to optimize recovery through EOR applications. Additionally, Prospera will pursue its acquisition strategy to diversify its product mix and expand its core footprint. Its goal is to achieve 50% light oil, 40% heavy oil, and 10% gas.

The corporation continues to strive to minimize its environmental footprint. In addition, it is making efforts to reduce and ultimately eliminate emissions, and is pursuing innovative ESG methods to improve API quality, thereby achieving higher margins and eliminating the need for diluents.

More information:

Shawn Mehler, PR
E-mail address: [email protected]
Website: www.prosperaenergy.com

FORECAST STATEMENTS
This press release contains forward-looking statements regarding 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,” “anticipates,” “expects” 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. 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 forecasts are based are reasonable, undue reliance should not be placed on the forecasts because Prospera can give no assurance that they will prove to be correct. Because forecasts address future events and conditions, by their nature they are subject to inherent risks and uncertainties. Actual results may 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 generally (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; uncertainty of reserve estimates; uncertainty of estimates and forecasts of production, costs and expenses; and health, safety and environmental risks), commodity price and currency 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 preparing any forward-looking information may prove to be incorrect. Events or circumstances could cause actual results to differ materially from those projected, 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 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 could differ materially from those projected. 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 forward-looking statement, whether as a result of new information, future events or Otherwiseexcept as expressly required by Canadian securities laws.

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.