Prospera Energy Inc. Announces First Quarter 2022 Financial Results

CALGARY, Alta., Aug. 08, 2022 (GLOBE NEWSWIRE) — Prospera Energy Inc. (“will prosper“or the”society“) (PEI: TSX-V; OF6B: FRA) is pleased to report its first quarter 2022 financial and operating results. The selected financial and operating information presented below should be read in conjunction with the Company’s financial statements and related MD&A for the quarter ended March 31, 2022.

Highlights of the first quarter of 2022:

In the first quarter of 2022, Prince Edward Island continued to optimize wells to increase production while addressing all legacy operational, financial and environmental non-compliances. During this quarter, the company successfully achieved stable production, continued to reduce legacy liability arrears (property tax, surface lease, trade payables) and raised $1.5 million through two placements private. Overall, Prince Edward Island continues to improve its financial position and liquidity while positioning the Company for accelerated growth and development.

• Realized revenue of C$3.5 million, an increase of 414% compared to the same period in 2021

• First quarter average production rate was net 475 boe/d in the first quarter of 2022, a 200% increase over the same period in 2021, reflecting continued leverage from recent working interest acquisitions

• Average realized price of $81.07/boe in Q1 2022 vs. $47.22/boe in Q1 2021

• Reporting positive net operating income of $1.1 million ($25.21/boe), $10.50/boe after G&A + interest

• Achieved positive EBITDA of $195,590 in the first quarter of 2022, up from negative EBITDA of -$209,276 in the same period of 2021

• Raised $1,478,573 through private equity and convertible debt placements demonstrating continued ability to improve liquidity and further reduce legacy and ARO liabilities

• Completion of initial planning, engineering and procurement of Saskatchewan Horizontal Wells Program; the commercial demonstration program was executed in the second quarter of 2022

Summary of operating income:

PEI’s financial information for the first quarter of 2022 can be found under the company’s issuer profile on SEDAR at www.sedar.com.

The story continues

Message to shareholders

PEI continues to restructure in order to appreciate and stabilize production with a secure operating infrastructure and reliable service providers. Legacy backlogs and non-compliance perspectives have been difficult obstacles to overcome. However, PEI’s restructuring efforts. on the operational, financial and environmental levels have made it possible to establish an effective relationship with essential service providers. The 2021 year-end financial audit identified important internal controls and procedures that are being incorporated as policies, thereby restructuring accounting practices to be timely, accurate and reliable in order to be compliant and cost effective.

In the second quarter of 2022, PEI piloted horizontal re-entry to customize the drilling process and mechanical adjustments to be compatible with formation characteristics and conditions. Geological and production risks are low due to well control, interpreted 3D seismic and production history. These pilots will build the horizontal program to begin the second phase of PEI development. in order to capture the large remaining reserves. Prince Edward Island is pleased to announce that horizontal pilot wells are licensed and have begun executing horizontal pilot re-entry tests to confirm Prince Edward Island’s engineering and geological assessments. Edward. The pilots will also help understand the economics of the drilling program. Prince Edward Island looks forward to providing the results of the pilot projects.

About Prospera

Prospera is a public oil and gas exploration, development and exploration company focused on conventional oil and gas reservoirs in Western Canada. Prospera will use its experience to develop, acquire and drill assets with primary and secondary recovery potential.

For more information:

Shawn Mehler, PR
Email: shawn@prosperaenergy.com
Website: www.prosperaenergie.com

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements relating to the Company’s future operations and other statements that are not historical facts. Forward-looking statements are often identified by words such as “will”, “may”, “should”, “anticipate”, “expect” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the Company’s future plans and objectives, 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 forward-looking statements are based are reasonable, undue reliance should not be placed on forward-looking statements because Prospera cannot guarantee that they will prove to be accurate. Because forward-looking statements address future events and conditions, they, by their very nature, 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 (for example, operational risks associated with development, exploration and production; delays or changes in plans for exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of production, cost and expense estimates and projections, and risks to health, safety and the environment), fluctuations in commodity prices and exchange rates and uncertainties resulting from potential delays or changes in plans for exploration or development projects or capital expenditures .

Readers are cautioned that the assumptions used in preparing any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those anticipated due to numerous known and unknown risks, uncertainties and other factors, many of which are beyond Prospera’s control. Accordingly, 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 when prepared, may prove to be incorrect and actual results may differ materially from those anticipated. 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 of the forward-looking statements included, whether as a result of new information, future events or otherwise, except 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.