Prospera has resumed the phase two development of the horizontal infill drilling program. The sixth horizontal well spudded last Sunday and the horizontal infill drilling transformation from vertical wells will continue through the winter to next year’s break up. Prospera’s quick turn-around in bringing this specific horizontal production online enables the company to sustain its momentum and capitalize on the current strong oil price environment.
The first 5 horizontal wells drilled have performed higher than the estimated type curve and the IP60 has exceeded PEI expectations. Prospera’s current gross production are 1,100 boepd, with 400 boepd shut-in to accommodate development, and another 300 boepd behind pipe on minor repairs and optimization.
The development of light oil slanted wells has received permits and the lease has been constructed. This development is to commence over the next few weeks, subject to weather conditions, etc. Prospera will continue the Phase 2 development program to increase production, aiming to achieve year-end targets and enhance Prospera’s share value.
In addition to the first closing of debt financing, PEI has received a robust response to the non-brokered private placement of debt financing up to $3,000,000. The financing is to accommodate joint venture partner deficit and to extend drilling. Prospera’s Joint Venture partners are in receivables and therefore in default payables until remedied. Consequently, Prospera assumes 100% of production and revenue.