Prospera Energy Inc. (TSX.V: PEI,) ("
Prospera",
“
PEI” or the "
Corporation")
Prospera Energy is pleased to announce the
completion and continuation of production optimization activities
in its heavy oil properties, with both immediate increases in
production and bolstering of field uptime and reliability. Five (5)
wells have been successfully completed with the service rig out of
an eight (8) well program, with a focus on pump changes, rod
repairs, and tubing cleanouts. Additionally, two (2) of these wells
have resulted in increased natural gas production, which is now
used as fuel gas for the fields, significantly improving field
reliability going forward. Furthermore, one high water-cut well was
repaired, resulting in increased water production and enabling the
Luseland Battery to more effectively separate emulsion. This
enhancement ensures the shipment of pipeline-spec oil resulting in
lower water hauling costs and improved netbacks.
The entire fields of Cuthbert, Luseland, and
Hearts Hill have been winterized including the installation of heat
trace systems, insulation, glycol pumps, road and gravel work, and
the implementation of chemical programs. Equipment such as engines,
hydraulic systems, and drives are in the process of tune-up work,
with part of the field already complete and the remainder still in
progress. These efforts will lead to improved operational runtime,
reduced costs due to better maintenance, and fewer operational
staff required on-site.
Work on the Brooks property is scheduled to
begin next week with an acid frac on the 15-02 Horizontal well
drilled in August, with a focus on stimulating the toe portion of
the well and perforating plus acidizing the heel portion of the
well where significant oil was observed in the shakers. The 5-31
directional well was brought back online on December 2nd following
optimization work and is currently producing, with a workover on
the 16-11 well to be completed to repair a hole in tubing. The
11-36 well, drilled this July, is currently being equipped with
production infrastructure, with acid frac operations commencing
shortly thereafter.
25+ critical vendors have been completely caught
up with all accrued account balances brought current and further
work being either pre-paid or operating on pre-approved credit
arrangements. Extensive discussions with other vendors are ongoing,
resulting in agreements with an additional 25+ vendors who have
agreed to 3-24 month payment plans, allowing account arrears to be
settled within that timeframe.
Regarding compliance efforts, Prospera Energy
began November with 133 MER non-compliances and ended the month
with only 22 remaining. Plans are in place, with execution pending
on the remaining infractions which will be addressed in a timely
and cost-effective manner. Renewed attention has been given to
regulatory alignment and environmental impacts, resulting in better
acting as a responsible operator and licensee going forward. A
comprehensive engineering assessment of the company’s properties,
with a particular focus on pipeline systems, is underway in
collaboration with a third-party, with results expected shortly.
Additionally, 18 cut-and-caps, and 84 Phase 1 assessments have been
identified and finalized to be completed in Spring 2025 towards
reducing abandonment liabilities, surface and property tax costs,
and administrative burdens. The company has also completed an
abandonment on an inter-provincial pipeline between Alberta and
Saskatchewan, which is under CER authority, and is in the process
of finalizing paperwork to recover a $94,000 deposit.
Prospera’s 2024 reserves process has commenced
in collaboration with InSite Petroleum Consultants, while the 2024
year-end audit is currently in its pre-study period with auditor
MNP, in an effort towards smoother and timely completion.
Internal adjustments have been implemented,
streamlining the team while securing the expertise of two highly
experienced contracted engineers, bringing a combined 50 years of
industry knowledge, connections, and business acumen. Further to
its initiatives towards free cash flow profitability, Prospera has
reduced monthly G&A expenses by 30% and adapted to a more
efficient and streamlined operational approach, emphasizing
pre-planning of field work and quick decision-making.
About Prospera
Prospera Energy Inc. is a publicly traded
Canadian energy company specializing in the exploration,
development, and production of crude oil and natural gas.
Headquartered in Calgary, Alberta, Prospera is dedicated to
optimizing recovery from legacy fields using environmentally safe
and efficient reservoir development methods and production
practices. The company’s core properties are strategically located
in Saskatchewan and Alberta, including Cuthbert, Luseland, Hearts
Hill, Red Earth, and Pouce Coupe. Prospera Energy Inc. is listed on
the TSX Venture Exchange under the symbol PEI and the U.S. OTC
Market under GXRFF.
For Further Information: Shawn Mehler, PR
Email: Investors@prosperaenergy.comWebsite:
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 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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