Traditionally, Q1 of every year has been burdened by severe cold weather conditions in western Canada and this year was no exception. Consequently, Prospera’s 2023 exiting peak rates of 1,800 boepd were affected by Q1 2024 PEI cold weather conditions. However, PEI was significantly better positioned to resume production on a much quicker timeline than in the same period the year before. In Q1 2024 Prospera continued to focus on operations stability and stable production. Q1 2024 financial highlights are as follows:
PEI realized average gross sales of 935 boe/d gross (net 640 boe/d) in Q1 2024, an increase of 158% from Q1 2023 gross sales of 363 boe/d (net 295 boe/d). The increase was due to additional production online from the 2023 development program, however, the Q1 2024 production average was affected from the Q1 cold weather conditions.
Due to higher production and price levels, PEI realized a 168% increase in sales revenue of $4,180,901 in Q1 2024 compared to $1,562,012 in Q1 2023.
Consequently, the higher volumes attributed to a 49% reduction to operating expenses of $33.74/boe in Q1 2024 compared to $65.67/boe in Q1 2023.
Higher volume, revenue, and lower operating costs contributed to an operating income increase of $1,555,747 from a loss of -$995,840 in Q1 2023 to $559,907 in Q1 2024.
Net cash flow from operating activities increased by $6,198,666 quarter over quarter from -$5,404,465 in Q1 2023, to cash provided of $794,201 in Q1 2024.
Capital Expenditures of $1,893,257 were incurred in Q1 2024 related to well optimization, facilities, pipelines & commissioning related activities.
PEI has submitted its quarter-end financial information for Q1 2024, which will be showcased on May 30th, 2024, within the Company's issuer profile on SEDAR+ at www.Sedarplus.ca.
2024 Outlook
In 2024, Prospera will continue to extend its horizontal transformational development accessing untapped heavy oil reserves while reducing the environmental footprint. Further, expand these developments to the remaining core properties that have much larger reserves in place. Also, larger focus is on developing medium-oil reserves Q3, 2024.
PEI will be undertaking significant vegetation, abandonment and reclamation program that can result in opex and asset retirement liability reduction.
