CALGARY, Alberta, June 01, 2024 (GLOBE NEWSWIRE) — Prospera Energy Inc. (“Prospera” or “Co., Ltd.(PEI: TSX-V; OF6A: FRA)
2023 was a transformational year for Prospera as it converted to horizontal well technology in its heavy oil fields in Saskatchewan. It also began medium-light oil development to diversify from a primarily heavy oil producer. The company successfully drilled, completed and connected nine horizontal wells in its heavy oil fields in Saskatchewan and one directional well in its light-medium oil fields in Alberta. PEI achieved a total peak rate of more than 1,800 bbl/d with an estimated total capacity of 2,200 bbl/d. However, lower commodity prices and cold weather conditions in the first quarter of 2023 offset the increased production in PEI.
Financial highlights for 2023 include:
-
PEI is expected to deliver average net sales of 723 boe/d (847 boe/d total sales) in the fourth quarter of 2023, an increase of 86% from fourth quarter 2022 levels, and average net sales of 505 boe/d (621 boe/d total sales) in 2023, an increase of 18% from 2022 levels.
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PEI realized an average selling price of $71.48 per barrel in 2023 compared to $89.13 per barrel in 2022.
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In 2023, we realized an operating netback of $3,356,774.
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Highlights from PEI's 2023 Third Party Reserves Report include:
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Pre-tax PDP reserves will increase 508% from $4.4 million to $27.1 million in 2023 at a 10% discount rate
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The pre-tax 2P reserve will increase by $60.8 million in 2023, from $72.5 million to $133.3 million, at a discount rate of 10%.
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Total proven and probable reserves increased 25% from 4,306 Mboe to 5,403 Mboe.
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In 2023, PEI raised $16 million in financing and extended $1.5 million of maturing convertible notes through 2025, allowing for PEI's capital development without impacting working capital.
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9.1 million upon exercise of the warrants, at an average price of $0.068 per share.
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$3.6 million from the issuance of two-year promissory notes.
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3 million through the issuance of GORR.
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1.3 million through the issuance of units consisting of common shares and warrants.
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Prospera's capital development program consisted of nine heavy oil horizontal wells and one medium oil vertical well, contributing an additional 1,000 bpd of additional production capacity.
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Restructuring efforts continue to improve Prospera's balance sheet.
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The property, plant and equipment balance as of December 31, 2022 increased from $29.0 million to $38.8 million.
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As of December 31, 2022, the stockholders' equity balance was a deficit of $6.2 million compared to a surplus of $1.2 million.
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Sales Netback |
2023 |
|
2022 |
|
Total oil and natural gas sales |
13,183,464 |
13,904,287 |
||
Transportation costs |
(1,083,591 |
) |
(645,817 |
) |
royalty |
(1,365,520 |
) |
(1,847,917 |
) |
Operational costs |
(7,377,579 |
) |
(6,926,832 |
) |
Sales Netback |
3,356,774 |
4,483,721 |
||
USD/BOE |
2023 |
2022 |
||
sale |
71.48 |
89.17 |
||
Transportation costs |
(5.88 |
) |
(4.14 |
) |
royalty |
(7.41 |
) |
(11.85 |
) |
Operating Costs |
(40.10 |
) |
(38.66 |
) |
Sales Netback |
18.09 |
34.52 |
The restructured Prospera continues to grow its asset value as it executes a development program to acquire its remaining significant reserves. In 2023, its total assets in PEI increased by $12.4 million.
assets |
2023 |
2022 |
||
current assets |
||||
cash |
$ |
118,933 |
$ |
1,050,960 |
Accounts and other receivables |
3,244,596 |
838,500 |
||
Prepaid Expenses and Deposits |
548,443 |
59,788 |
||
stock |
521,426 |
449,849 |
||
Total current assets |
4,433,398 |
2,399,097 |
||
Non-current assets |
||||
Trading and Accounts Receivable |
4,387,826 |
2,844,129 |
||
deposit |
1,015,400 |
918,902 |
||
Property and Facilities |
38,827,883 |
28,984,586 |
||
Usage Rights |
503,807 |
661,941 |
||
Total assets |
$ |
49,168,314 |
$ |
35,808,655 |
PEI is filing financial information for the fiscal year end 2023, which will be publicly available within the company's issuer profile on SEDAR+ at www.Sedarplus.ca.
Outlook for 2024
The 2023 transformational development had much higher initial production rates than expected. As a result, Prospera's asset value has increased to $133 million (2023 NPV10-2P reserves value). This strong increase comes from the initial development of the medium reservoir and only one of the three core reservoirs. For Prospera, the near-term development benefits are significant. In 2024, Prospera will continue to expand the transformational development to access undeveloped reserves while reducing environmental impact. Additionally, it will extend these developments to the remaining core reservoirs, which have much larger reserves.
About Prospera
Prospera is a publicly traded energy company based in Western Canada specializing in the exploration, development and production of crude oil and natural gas. Prospera's primary focus is optimizing hydrocarbon recovery from existing oil fields through environmentally safe and efficient reservoir development and production methods. Prospera restructured in the first quarter of 2021 to become more profitable and compliant with regulatory, environmental, municipal, landowner and service stakeholder requirements.
The company is in the midst of a three-phase restructuring process aimed at prioritizing cost-efficient operations while evaluating production capacity and reducing debt. Prospera has completed the first phase by optimizing easy opportunities, achieving free cash flow and putting operations in a safe operating state while remaining compliant. Currently, Prospera is executing Phase II of the restructuring process, a horizontal transformation aimed at accelerating growth and capturing existing large volumes of oil (400 million barrels). These horizontal wells will allow PEI to reduce environmental and surface impacts by eliminating a large number of vertical well leases along lateral paths. Phase III of Prospera's corporate redevelopment strategy is to optimize recovery from EOR applications. In addition, Prospera will pursue an acquisition strategy to diversify its product mix and expand its core areas. Its goal is to achieve 50% light oil, 40% heavy oil and 10% gas.
The company continues to strive to minimize its environmental impact, working to reduce and ultimately eliminate emissions, and pursuing innovative ESG techniques to improve API quality, achieve higher profit margins and eliminate the need for diluents.
For more information:
Shawn Mehler, Public Relations
Email: investors@prosperaenergy.com
Website: www.prosperaenergy.com
Forward-Looking Statements
This press release contains forward-looking statements regarding our future operations and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “expects,” “anticipates” and similar expressions. All statements other than statements of historical facts included in this release, including, without limitation, statements regarding our future plans and objectives, are forward-looking statements that involve risks and uncertainties. There can be no assurance that these 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, Prospera can give no assurance that the forward-looking statements will prove correct and therefore undue reliance should not be placed on such statements. Because forward-looking statements relate to future events and circumstances, by their nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently expected due to a number of factors and risks, including, but not limited to, uncertainties resulting from risks associated with the oil and gas industry generally (such as operational risks in development, exploration and production, delays or changes in plans for exploration and development projects or capital expenditures, uncertainties in reserve estimates, and uncertainties in estimates and projections regarding production, costs and expenses, health, safety and environmental risks), fluctuations in commodity prices and currency exchange rates, and potential delays or changes in plans for exploration and development projects or capital expenditures.
Readers are cautioned that assumptions used in preparing the forward-looking information may prove to be inaccurate. Events or circumstances could cause actual results to differ materially from expectations as a result of a number of known and unknown risks, uncertainties and other factors, many of which are beyond Prospera's control. As a result, Prospera cannot guarantee that forward-looking statements will come to pass and readers are cautioned not to place undue reliance on forward-looking information. Such information, even if believed to be reasonable by management at the time it was made, may prove to be inaccurate and actual results may differ materially from expectations. 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 undertakes no obligation to publicly update or revise any contained forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities legislation.
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.