2022 Q3 Highlights:
In the third quarter of 2022, Prospera continued the restructuring efforts to be profitable and compliant, both environmentally & regulatorily. PEI accelerated the restructuring momentum by executing a significant well recompletion and reactivation work over program during Q3. As a result, PEI September exit production rate (gross) of 710 BOE/d is 40% higher than the Q2 2022 production average.
During this quarter the Corporation effectively:
- Achieved oil and gas revenue of $3,752,046 in Q3 2022 vs. $982,966 in Q3 2021
- Achieved positive EBITDA of $1,728,611 in Q3 2022 vs. negative EBITDA of ($1,118,624) in Q3 2021
- Realized Net Income of $938,968 in Q3 2022 vs. Net Loss ($1,270,030) in Q3 2021
- Attained a net production rate of 484 boe/d in Q3 2022 vs. 169 boe/d in Q3 2021; September sales were 710 boe/d (gross), increasing from 557 boe/d (gross) in July with an average net working interest of 78%. On target for 1,500 boe/d (gross) 2022 exit rate
- Reported positive Cash Flow from Operations of $2,801,621 for YTD 2022 vs. negative Cash Flow from Operations of ($3,919,219) for YTD 2021
- Realized average revenue pricing of $85.09/boe in Q3 2022 vs. $63.18/boe in Q3 2021. This represents a 34.7% increase in pricing year over year
- Operating Costs per boe have declined from $52.56/boe to $40.07/boe as restructuring momentum accelerates
- Reported positive operating netback of $1,532,985 or $34.78/boe, $24.74/boe after G&A + Interest
Operating Income Summary:
Message to Shareholders
- As ESG initiatives continue, PEI has abandoned 16 wells amounting to $599,812 in decommissioning liability (ARO) reduction in Q3 2022; 41 wells amounting to $986,209 in ARO reduction for YTD 2022. PEI’s commitment to the environment remains a major focus
- PEI’s management and advisors have spent considerable time interpreting the drilling and completion results of the two re-entry horizontal pilot wells resulting in a substantial Q4 development plan. This bodes well for PEI meeting the target 2022 exit production rate
