Prospera Energy Inc. Announces Low Dilutive Development Capital Raise
September 27 2023 - 1:59AM
Prospera Energy Inc. (“Prospera” or the “Company”)(TSX.V: PEI, OTC:
GXRFF, FRA: OF6B, OF6B.SG, OF6B.F, OF6B.BE).
Prospera has successfully drilled five
horizontal wells of the multi-well infill horizontal development
program. Two horizontal wells have commenced production and the
remaining three horizontal wells will commence production in the
subsequent weeks. Currently, PEI gross production levels are
800boepd with 400boepd behind pipe to accommodate development. Over
the next month, Prospera is expected to attain gross production
level of 1,500boepd from behind the pipe production resumption and
the additional production from the new horizontal wells. The new
horizontal wells will be brought on strategically in a gentle way
to accommodate the heavier viscous oil to achieve steady flow peak
rates over the next few months.
The horizontal infill drilling program will
resume in the next few weeks to allow for lease preparations and
access. Due to the efficient collaboration of services and results
encountered, Prospera has elected to continue beyond the current
ten well program. Prospera will continue the horizontal infill
drilling transformation from vertical wells through the winter to
next year break up. The quick turn-around to bring this specific
horizontal production online allows Prospera to capitalize on the
current high Western Canadian Select price of $90 plus per barrel.
Therefore, low dilutive capital raise is proposed to continue the
drilling that will add significant incremental production to
capture substantial recoverable reserves. Furthermore, medium oil
development will also commence concurrently.
Capital Raise
PEI hereby announces that it is undertaking a
non-brokered private placement of debt financing. A total of up to
$3,000,000 will be raised offering holders’ interest of 14% per
annum, with interest payments to be made quarterly for a term of 2
years. In addition to interest, holders will receive one common
share for each dollar of principal advanced, at the time of
investment. The Company has already received multiple-lead orders
of $1,000,000 plus towards this offering.
Debt Term Sheet
Issuer: |
Prospera Energy Inc. (“Prospera” or the
“Company”). |
Issue: |
Low-dilutive offering (the "Offering") of debt
financing with equity bonus. |
Target Close Date: |
October 31st, 2023. |
Offering Amount: |
$3,000,000 CAD. |
Equity Bonus: |
Principal amount loaned will be granted an equity bonus. 1 share
for every $1 of debt provided for a total of 3,000,000 shares. |
Interest: |
14% interest, calculated and paid quarterly in cash starting after
the 3rd quarter (interest in the first quarter is compounded). |
Term: |
2 years. |
Repayment: |
Principle repaid at the end of the term. |
Underlying Equity Bonus: |
Common shares of the Company listed on the TSX Venture Exchange
under the symbol PEI (the “Common Shares”). |
Use of Proceeds: |
Prospera intends to use the net proceeds of the Offering for
development capital (covering default partner portion) – Drilling,
Completion & Tie-in, well abandonment & reclamation costs,
and ongoing ESG initiatives. |
Finders Fees: |
The Corporation may pay qualified finders a fee of 7% cash and 7%
warrants. |
Offering Basis: |
Private placement debt offering with equity bonus. |
Prospera’s strategic evaluation suggests equity
values are not appropriately accounting for the future potential of
its asset value. Thus, the Company is focused on minimal dilution
financing options and if fully subscribed, this debt financing
would contribute to less than 1% equity dilution to the
Company.
Parties interested in participating in this debt
offering should contact the Company immediately. Insiders may
participate in this offering. Prospera is relying upon exemptions
contained in MI61-101 from the requirements for an independent
evaluation and minority shareholder approval. This offering is
subject to approval from the TSX Venture exchange.
About Prospera
Prospera Energy Inc. (TSX.V: PEI, OTC: GXRFF,
FRA: OF6B) is a publicly traded energy company based in Western
Canada, specializing in the exploration, development, and
production of crude oil and natural gas. 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. Phase III of Prospera’s corporate
redevelopment strategy will focus on continuing the company’s
horizontal modular development to appreciate production and
optimize recovery of remaining reserves.
Prospera intends to implement full-scale EOR
applications based on the results of its Phase II pilot program,
which is forecasted to optimize recovery by greater than 10%.
Prospera also intends to continue its acquisition strategy to
diversify its product mix. Its goal is to attain 50% light oil, 40%
heavy oil and 10% gas.
PEI continues to apply efforts to minimize its
environmental footprint. Also, efforts to reduce and eventually
eliminate emissions, alongside pursuing innovative ESG methods to
enhance API quality, thereby achieving higher margins and
eliminating the need for diluents.
For Further Information:
Shawn Mehler, PR Email:
shawn@prosperaenergy.comWebsite: www.prosperaenergy.com
FORWARD-LOOKING STATEMENTSThis
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.
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