Meeting Phase 2 KPIs, Prospera Energy Inc. (TSX.V: PEI) (OTC: GXRFF) (FRA: OF6B) Emerging as a Model for Sustainable Growth in the Oil & Gas Industry

  • Prospera in 2021 launched a new strategy to improve margins and oil and gas production while minimizing environmental impact
  • Horizontal well-technology allows for increase in production and Prospera has now abandoned 60 vertical wells as part of its three-year LMRP to reclaim surface land and reduce environmental footprint that will see 200+ vertical wells abandoned
  • Prospera this month completed the drilling of four horizontal wells of a ten-well multi-pad infill drill program that can add an additional ~750 bpd at a low decline to Prospera’s current 900+boepd

With more than 42,000 cumulative acres across Cuthbert, Luseland and Heart Hills in Saskatchewan and Red Earth and Pouce Coupe in Alberta, Prospera Energy (TSX.V: PEI) (OTC: GXRFF) (FRA: OF6B) has the potential to be a significant North American oil and gas producer. In 2021, the company underwent a top-down reorganization, a strategy to realize this potential and do so with best practices regarding protecting the planet. Less than two years into the three-part plan, Prospera is hitting its key performance indicators (“KPIs”), and growing production with an eye on reducing vertical wells.

With its restructuring, Prospera incorporated innovative ESG (environmental, social, and governance) technologies to support a robust Liability Management Ration Program (“LMRP”) to reduce the environmental footprint, Asset Retirement Obligation (“ARO”), and corresponding control expenses and improve margins. LMRPs are an important tool for managing the financial risks associated with oil and gas abandonment and reclamation. They help to protect taxpayers, encourage companies to be more responsible, and ensure that wells and facilities are abandoned and reclaimed in a timely and environmentally responsible manner.

The Canadian government is supportive of LMRPs, offering financial incentives (e.g., tax credits) and loan guarantee programs to assist companies implement programs.

Prospera’s plan is working. 2021 reorganization efforts as phase one of the strategy resulted in production appreciation and liability reduction. Amongst other things, Prospera’s net asset value increased to $72 million from -$3.4 million prior to restructuring. In 2022, phase 2 of the development plan commenced, delivering net income of $3.1 million. In 2024, Prospera is targeting $26.5 million in net income.

From an environmental view, phase two includes capitalizing on Prospera’s large drilling inventory of 150+ targets that are estimated to hold more 400+ million barrels of heavy oil, with only about 9 percent recovered to date. The company has abandoned 60 vertical wells as part of its three-year LMRP that allows PEI to reclaim surface land and reduce environmental footprint. More broadly, the drilling of the new horizontal wells allows Prospera to abandon more than 200 vertical wells.

Phase three includes reducing carbon emissions with upgraded equipment, increasing carbon capture, and the latest technology to further improve profit margin.

This month, Prospera completed the drilling of four horizontal wells of a ten-well multi-pad infill drill program. These wells, which were completed ahead of schedule, encountered structure, and paid as expected with excellent oil shown throughout the pay.

These drilled horizontals are being completed and tied-in to existing infrastructure. Production will be brought on gently initially to optimize recovery due to the heavier fluid properties. The full deliverability can be attained, approximately, over a three-month period. Weather permitting, the next set of four horizontals are to commence within one week.

The ten-well program can approximately add an additional 750 barrels per day (“bpd”) at a low decline to Prospera’s current 900+boepd (barrels of oil equivalent per day). This infill development is intended to accelerate production and recovery to capture the significant heavy oil reserves in place.

Further, a medium-light oil spud will follow the heavy oil horizontal well transformation from vertical wells in the latter part of this month. These slanted drills are awaiting the preparation of the new leases, surface facilities, and connecting pipelines. The medium-light oil development entails six to eight directional wells that can add an additional 600bpd (gross) at 50%, while diversifying Prospera’s product mix and improving margin.

For more information, visit the company’s website at www.ProsperaEnergy.com.

NOTE TO INVESTORS: The latest news and updates relating to GXRFF are available in the company’s newsroom at https://ibn.fm/GXRFF

About MiningNewsWire

MiningNewsWire (“MNW”) is a specialized communications platform with a focus on developments and opportunities in the Global Mining and Resources sectors. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled recognition and brand awareness.

MNW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.MiningNewsWire.com

Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer

MiningNewsWire
Los Angeles, CA
www.MiningNewsWire.com
310.299.1717 Office
Editor@MiningNewsWire.com

MiningNewsWire is powered by IBN

Archives

Select A Month

Contact us: (310) 299-1717