Prospera Energy Inc. ("Prospera" or the "Corporation") (TSX.V: PEI, OTC: GXRFF, FRA: OF6B, OF6B.SG, OF6B.BE)
Prospera is pleased to announce the 2024 development drilling program commencing in mid-July. The initial focus will be on multi-pad medium-oil infill directional wells based on 2023 positive drilling results. The 2023 capital outlay for the initial medium-oil well is on target to pay out in approximately 7 months demonstrating effective program execution and efficient return on capital. Due to existing infrastructure already in place, these subsequent infill medium-oil wells are expected to continue robust economics. The 2024 medium-oil drilling program includes infill development of two pools and the initial drilling of a new pool.
The horizontal transformation to capture the substantial remaining heavy oil reserves will be continued subsequent to the medium-oil drills. Multilateral development is also proposed for the untapped other two core heavy oil properties. In addition to the improved recovery (IR) via horizontal wells and reservoir management, enhanced oil recovery (EOR) is commencing with a pilot project.
Prospera is primarily focused on achieving production and cash flow stability through optimization of its core assets, infrastructure improvements and sound reservoir management. Furthermore, PEI expects to leverage joint venture receivables to increase reported net working interest production & revenue levels.
The PEI 2024 optimization and development program is being financed through non-dilutive debt financing of $11 million, with a 12% interest rate and a two-year term that was recently finalized. This capital is specifically dedicated to the 2024 development program, in turn supporting production and cash flow targets, increasing reserve values, lowering legacy arrears, and reducing regulatory and environmental non-compliances. As part of White Tundra Investments business development initiatives supporting Prospera, assistance was provided in securing the investment from the investor group. White Tundra was not paid any finder’s fee in this transaction.
