Prospera Energy Announces a +500 bbls per Day Flowing Well and Continued Horizontal Drilling Success
December 14 2023 - 2:00AM
Prospera Energy Inc. (“Prospera” or the “Company”)(TSX.V: PEI, OTC:
GXRFF, FRA: OF6B, OF6B.SG, OF6B.F, OF6B.BE).
Prospera Energy Inc. is pleased to announce a
medium light oil +500 barrels per day flowing well from a full day
of production testing. This above gradient pressure reservoir will
typically flow for a few months and will transition into an
artificial lift system production of approximately +150 bblspd of
stabilized rate. A second well is also to come online within the
next few days expecting similar production rates. Prospera will
continue the medium light oil drilling development to increase
production and diversify the heavy-light oil product mix to
increase shareholder value.
Prospera is also delighted to announce the heavy
oil drilling success of attaining lateral pay greater than 500
meters (m) that has realized initial production rates higher than
100+ bblspd. The second group of horizontal transformation wells
drilled has attained consistently +500m of lateral pay and the most
recent (the 8th horizontal well) has attained +700m of lateral pay.
The 9th well is expected to commence in the next few days.
Pleasantly, based on the drilling and
optimization success PEI has achieved a high daily gross production
rate of 1,577 BOEPD. As a result, Prospera is expected to exceed
the year-end exit target of 1,800 BOEPD. These successful
developments translate to significant additional reserve and
appreciation of PEI net present value (NPV). Prospera’s Joint
Venture partners are in receivable and therefore in default
position until remedied. Consequently, Prospera assumes 100% of the
cash received from the partner’s share of oil sales.
Prospera Energy will continue the phase 2
development transformation to optimize recovery from the
significant remaining reserves and achieve operational excellence
to become a low-cost producer. In 2024, PEI plans to further
enhance recovery through (EOR) Enhanced Oil Recovery methods and
add to existing production levels through strategic acquisitions to
expand the core reserve base and to diversify the product mix.
The restructured Prospera remains steadfast in
its commitment to eliminating the legacy arrears to landowners,
regulators, and the local community. Prospera is sincerely thankful
to all stakeholders for their cooperation and collaboration for
PEI’s continued growth. On behalf of the entire PEI team, Prospera
wishes you and your family a very Merry Christmas, the best of the
festive season, and safe holidays.
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 is primarily
focused on optimizing hydrocarbon recovery from legacy fields
through environmentally safe and efficient reservoir development
methods and production practices. Prospera was restructured in the
first quarter of 2021 to become profitable and in compliance to
regulation, environment, landowners, and service providers.
The company is in the midst of a three-stage
restructuring process aimed at prioritizing cost effective
operations while appreciating production capacity and reducing
liabilities. Prospera has completed the first phase by optimizing
low hanging opportunities, attaining free cash flow, while bringing
operation to safe operating condition, all while remaining
compliant. Currently, Prospera is executing phase II of the
restructuring process, the horizontal transformation intended to
accelerate growth and capture the significant remaining reserves
(400 million bbls). These horizontal laterals allow PEI to 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 is to optimize recovery
through EOR applications. Further, Prospera will pursue 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:
investors@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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