2023 was a highly successful year for the restructured Prospera Energy Inc. PEI drilled, completed and tied-in nine horizontal wells in heavy oil reservoir with initial production rates exceeding expectations at 100+bpd per well. The ninth well was rig released on December 24th and was brought online on December 28th. In addition, PEI drilled a directional well accessing medium-light oil flowing at 500+ Bpd. Gross peak rates of 1,800 boepd were attained prior to year-end, excluding the production of the recently drilled and completed horizontals, and the shut-in production for drilling. This production was brought on throughout the month resulting in a monthly average of approximately 1,300 gross boepd. Currently, the total production capability of Prospera is 2,200 boepd that will be optimized in the next few weeks barring any extreme winter weather conditions.
Prospera was effectively able to fund the 2023 development plan with minimal dilution. The Company raised a total of $16.1 million through the issuance of multi-year promissory notes, GORR financing, private placement, and the exercise of previously issued warrants. A significant amount of these funds was raised through insider participation and strategic investment.
PEI’s future development plans are substantiated and encouraged by the 2023 development drilling and production results. Therefore, in 2024, Prospera is proposing robust development and acquisition plans to attain year end production rates of 5,000 boepd. Furthermore, PEI plans to pilot and implement Enhanced Oil Recovery (EOR) methods and add to existing production levels. The strategic acquisitions are to expand the core reserve base and to diversify the product mix. Funding for Prospera’s 2024 development program will be facilitated from cash flow generated from existing operations, debt, and equity financing through private placement.
These successful developments translate to significant additional reserve and appreciation of PEI net present value (NPV) for the year end 2023. This production increase will translate to sustainable revenue for operations, and and remains steadfast in its commitment to eliminating the legacy arrears to landowners, regulators, and the local community anticipated by the year end 2024. The company’s Heavy Oil Joint Venture partners are in receivables and therefore in default position until remedied. Consequently, Prospera assumes 100% of the cash flow received from the partner’s share of oil sales.