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Prospera Energy Inc. Announces Q1 2024 Financial Results

CALGARY, Alberta, May 31, 2024 (GLOBE NEWSWIRE) — Prospera Energy Inc. (“Prospera” or the “Corporation“) (PEI: TSX-V; OF6A: FRA)

Traditionally, Q1 of every year has been burdened by severe cold weather conditions in western Canada and this year was no exception. Consequently, Prospera’s 2023 exiting peak rates of 1,800 boepd were affected by Q1 2024 PEI cold weather conditions. However, PEI was significantly better positioned to resume production on a much quicker timeline than in the same period the year before. In Q1 2024 Prospera continued to focus on operations stability and stable production. Q1 2024 financial highlights are as follows:

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 (MD&A) for the quarter ended March 31, 2024.

Operating Netback Q1 2024 Q1 2023
Total petroleum and natural gas sales 3,932,215 1,562,012
Transportation costs (288,361) (180,449)
Royalties (286,480) (188,727)
Operating costs (1,966,238) (1,742,455)
Operating netback 1,391,137 (549,618)
Dollar per BOE Q1 2024 Q1 2023
Sales 67.48 58.87
Transportation costs (4.95) (6.80)
Royalties (4.92) (7.11)
Operating costs (33.74) (65.67)
Operating netback 23.87 (20.72)
ASSETS   March 31, 2024   December 31, 2023
Current assets        
Cash $ 26,600 $ 118,933
Trade and other receivables   2,894,087   3,244,596
Prepaid expenses and deposits   616,403   548,443
Inventory   642,475   521,426
Total current assets   4,179,565   4,433,398
Non-current assets        
Trade and other receivables   3,606,803   4,387,826
Deposits   1,025,370   1,015,400
Property and equipment   39,875,976   38,827,883
Right-of-use   464,273   503,807
Total assets $ 49,151,987 $ 49,168,314

PEI has submitted its quarter-end financial information for Q1 2024, which will be showcased on May 30th, 2024, within the Company’s issuer profile on SEDAR+ at www.Sedarplus.ca.

2024 Outlook

In 2024, Prospera will continue to extend its horizontal transformational development accessing untapped heavy oil reserves while reducing the environmental footprint. Further, expand these developments to the remaining core properties that have much larger reserves in place. Also, larger focus is on developing medium-oil reserves Q3, 2024.

PEI will be undertaking significant vegetation, abandonment and reclamation program that can result in opex and asset retirement liability reduction.

About Prospera

Prospera is a publicly traded energy company based in Western Canada, specializing in the exploration, development, and production of crude oil and natural gas. Prospera is primarily focused on optimizing hydrocarbon recovery from legacy fields through environmentally safe and efficient reservoir development methods and production practices. Prospera was restructured in the first quarter of 2021 to become profitable and in compliance with regulatory, environmental, municipal, landowner, and service stakeholders.

The company is in the midst of a three-stage restructuring process aimed at prioritizing cost effective operations while appreciating production capacity and reducing liabilities. Prospera has completed the first phase by optimizing low hanging opportunities, attaining free cash flow, while bringing operation to safe operating condition, all while remaining compliant. Currently, Prospera is executing phase II of the restructuring process, the horizontal transformation intended to accelerate growth and capture the significant oil in place (400 million bbls). These horizontal wells allow PEI to reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path. Phase III of Prospera’s corporate redevelopment strategy is to optimize recovery through EOR applications. Furthermore, Prospera will pursue its acquisition strategy to diversify its product mix and expand its core area. Its goal is to attain 50% light oil, 40% heavy oil and 10% gas.

The Corporation continues to apply efforts to minimize its environmental footprint. Also, efforts to reduce and eventually eliminate emissions, alongside pursuing innovative ESG methods to enhance API quality, thereby achieving higher margins and eliminating the need for diluents.

For Further Information:

Shawn Mehler, PR
Email: investors@prosperaenergy.com
Website: www.prosperaenergy.com

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “anticipate,” “expects” and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Although Prospera believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Prospera can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Prospera. As a result, Prospera cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward- looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Prospera does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.


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