Prospera has successfully drilled five horizontal wells of the multi-well infill horizontal development program. Two horizontal wells have commenced production and the remaining three horizontal wells will commence production in the subsequent weeks. Currently, PEI gross production levels are 800boepd with 400boepd behind pipe to accommodate development. Over the next month, Prospera is expected to attain gross production level of 1,500boepd from behind the pipe production resumption and the additional production from the new horizontal wells. The new horizontal wells will be brought on strategically in a gentle way to accommodate the heavier viscous oil to achieve steady flow peak rates over the next few months.
The horizontal infill drilling program will resume in the next few weeks to allow for lease preparations and access. Due to the efficient collaboration of services and results encountered, Prospera has elected to continue beyond the current ten well program. Prospera will continue the horizontal infill drilling transformation from vertical wells through the winter to next year break up. The quick turn-around to bring this specific horizontal production online allows Prospera to capitalize on the current high Western Canadian Select price of $90 plus per barrel. Therefore, low dilutive capital raise is proposed to continue the drilling that will add significant incremental production to capture substantial recoverable reserves. Furthermore, medium oil development will also commence concurrently.
PEI hereby announces that it is undertaking a non-brokered private placement of debt financing. A total of up to $3,000,000 will be raised offering holders’ interest of 14% per annum, with interest payments to be made quarterly for a term of 2 years. In addition to interest, holders will receive one common share for each dollar of principal advanced, at the time of investment. The Company has already received multiple-lead orders of $1,000,000 plus towards this offering.
Prospera’s strategic evaluation suggests equity values are not appropriately accounting for the future potential of its asset value. Thus, the Company is focused on minimal dilution financing options and if fully subscribed, this debt financing would contribute to less than 1% equity dilution to the Company.
Parties interested in participating in this debt offering should contact the Company immediately. Insiders may participate in this offering. Prospera is relying upon exemptions contained in MI61-101 from the requirements for an independent evaluation and minority shareholder approval. This offering is subject to approval from the TSX Venture exchange.