Prospera Energy Inc. ("Prospera") (FRA) is pleased to release its Q1 2022 financial and operating results. Selected financial and operational information outlined below should be read in conjunction with the Company’s financial statements and related management’s discussion and analysis for the quarter ended March 31, 2022.
First Quarter 2022 Highlights:
In the first quarter of 2022 PEI continued to optimize wells to increase production while addressing all legacy non-compliance operationally, financially, and environmentally. During this quarter, the corporation successfully realized steady production, continued to reduce legacy liability arrears (property tax, surface lease, trades payable), and raised $1.5 million through two private placements. Overall, PEI continues to improve its financial position and liquidity while positioning the Corporation for accelerated growth and development.
- Achieved Revenue of $3.5 million CAD, an increase of 414% from the same period in 2021
- Q1 average production rate was net 475 boe/d in Q1 2022, a 200% increase from the same period in 2021 reflecting continued leverage of recent working interest acquisitions
- Realized average pricing of $81.07/boe in Q1 2022 vs. $47.22/boe in Q1 2021
- Reporting positive operating netback of $1.1 million ($25.21/boe), $10.50/boe after G&A + Interest
- Achieved positive EBITDA of $195,590 in Q1 of 2022, up from a negative -$209,276 in the same period of 2021
- Raised $1,478,573 through share and convertible debt private placements demonstrating continued ability to improve liquidity and further reduce legacy and ARO liabilities
- Completed initial planning, engineering, & procurement of the Saskatchewan horizontal well program; commercial demonstration program was executed in Q2 2022
Message to Shareholders
PEI continues to restructure in order to appreciate and stabilize production with safe operating infrastructure and reliable service providers. Legacy arrears and non-compliance optics have been difficult hurdles to overcome. However, PEI restructuring efforts operationally, financially, and environmentally have attributed to establishing an effective relationship with the critical service providers. Year-End 2021 financial audit identified significant internal controls and procedures that are being incorporated as policies, thus, restructuring accounting practices to be prompt, accurate, and reliable in order to be compliant and profitable.
In the second quarter of 2022, PEI has piloted re-entry horizontal to customize the drilling process and the mechanical tweaks to be compatible with the formation characteristics and conditions. The geological and production risks are low due to well control, interpreted 3D seismic, and production history. These pilots will architect the horizontal program to commence PEI’s second development phase to capture the significant remaining reserves. PEI is pleased to announce pilots’ horizontal wells are licenced and have begun executing the test pilot re-entry horizontals to confirm PEI engineering and geological assessments. The pilots will also assist in understanding the scope of the economics of the drilling program. PEI is looking forward to providing the results of the pilots.