Prospera Energy Inc. Provides Operations Update

Core Viewpoint - Prospera Energy Inc. is demonstrating strong operational performance with significant production growth and ongoing optimization projects across its properties, indicating a positive trajectory for the company’s future operations [1][3]. Production Performance - The company averaged gross production of 859 boe/d (97% oil) from July 1 to July 23, with nine additional wells coming online recently [1]. - Production at the Cuthbert pool averaged 356 boe/d (100% oil) during the same period, supported by waterflood optimization and maintenance [4]. - Hearts Hill pool production remained stable at 230 boe/d (91% oil), with ongoing initiatives to enhance reservoir performance [6]. - Luseland pool production averaged 193 boe/d (100% oil), bolstered by workovers and field optimizations [7]. Operational Enhancements - The company is conducting weekly well-by-well analyses and implementing production enhancement changes daily [2]. - Prospera's service rig is working through over 150 remaining workover and reactivation candidates, improving operational efficiency [2]. - Numerous optimization efforts are underway, including the installation of recycle pumps and increased pump speeds to enhance fluid drawdown [8]. Strategic Projects - High-impact remediation projects are being executed, including the installation of downhole bridge plugs and casing cuts to block water production [5]. - The company has completed over 50 projects and has finalized plans for Q3 and Q4 service rig programs, including nine reactivations [3]. Financial Management - Prospera has hedged 100 barrels of oil per day at an average price of approximately USD $67.00 per barrel from September 2025 through February 2026 to stabilize cash flow [12]. - The company has entered agreements to settle outstanding trade payables through the issuance of common shares, totaling $36,292 [13]. - An amendment to a promissory note has increased the total principal amount to $18,700,000, earmarked for production-increasing capital projects [14]. Transparency and Reporting - Prospera is enhancing transparency by publishing updated production, workover tracker, and key wells reports, with monthly production volumes and corporate revenue information [11].