Core Insights - Prospera Energy Inc. is committed to providing transparent updates on operational performance and field developments, with a focus on production trends and strategic advancements [1] Production Performance - The company reported an average gross production of 880 boe/d (94% oil) from June 1 to June 15, marking the sixth consecutive update of production growth [2] - Production figures exclude contributions from the recently acquired White Tundra Petroleum assets, which are pending acceptance by the TSXV [2] - The Cuthbert pool averaged 350 boe/d (100% oil) during the same period, supported by well speed-ups and waterflood optimization [4] - Hearts Hill pool production averaged 245 boe/d (89% oil), with improvements in oil cuts due to effective recovery and optimization efforts [5] - Luseland pool production averaged 179 boe/d (100% oil), with specific wells showing significant production increases [6] Financial Performance - Western Canadian Select (WCS) differentials are at record-low levels, trading at less than $9/bbl under WTI, positively impacting revenue and cash flow [3] - The company is reallocating capital into high-impact projects, finalizing plans for Q3 and Q4 service rig programs [3] Operational Initiatives - A comprehensive well-by-well analysis and waterflood optimization review are being implemented throughout the summer [2] - The company is addressing over 150 workover and reactivation wells to enhance operational efficiency [2] - Technical studies on conformance gel injections are being advanced to mitigate water channeling in the Hearts Hill area [5] Corporate Developments - Prospera has published its inaugural cash flow and key wells report, which will be released monthly alongside operational updates [7][8] - The company is inviting shareholders to its Annual General Meeting on June 19, where management will discuss operational progress and future initiatives [9] - An amendment to a promissory note has increased the total principal amount to $16,700,000, maintaining a 12% interest rate and a two-year maturity [10]

Financing Update - Prospera Energy has secured commitments for $3 million, primarily from company insiders, through a convertible debenture and existing financing instruments [1] - The funding is designated for a recently initiated capital program and will be released in multiple tranches, reflecting strong internal alignment and confidence in the strategic business plan [1] - This capital injection is expected to accelerate operational plans and support production growth throughout the summer [1] Operational Update - Service rig activity has commenced at Cuthbert, focusing on five well workovers, including a high-impact horizontal well remediation, and multiple water injector cleanouts [2] - At Luseland, a five-well reactivation program is planned, with equipment ordered and preparations underway for building five single well batteries [2] Polymer Flood Pilot Site - The polymer flood pilot site has been finalized following reservoir analysis and compatibility assessments, with lab and core analysis currently in progress [3] - This initiative is being advanced in collaboration with leading polymer partners [3] Q1 2025 Financials - In Q1 2025, Prospera deployed $2.3 million towards reactivation-focused capital for twenty-seven wells, resulting in an additional production capability of 249 boe/d at an average capital efficiency of $9,317/boe [5] - The full benefits of the Q1 capital program are expected to be realized in Q2 2025 [5] - Prospera reported average net sales of 660 boe/d in Q1 2025, a 3% increase from Q1 2024 and a 6% increase from Q4 2024 [16] - Sales revenue for Q1 2025 was $4,598,472, representing a 17% increase from $3,932,190 in Q1 2024 [16] - Operating costs per boe increased by 54% in Q1 2025 to $59.46, attributed to unplanned outages and infrastructure upgrades [16] Strategic Initiatives - Prospera secured an additional $3.3 million in term debt funding to enhance liquidity and support ongoing development programs [6] - The company entered into an agreement to acquire 100% of White Tundra Petroleum, with consideration including 18 million common shares contingent on production milestones [7][8] - A settlement agreement was reached regarding $1.5 million in convertible debt, involving refinancing and issuance of common shares [9][15] - A workforce optimization initiative was completed, streamlining decision-making and reducing operational costs [10]

Core Points - Prospera Energy Inc. plans to raise up to $2,000,000 through a non-brokered private placement of 12% convertible debentures, with conversion prices set at $0.05 for the first year and $0.10 for the second year [1][2] - The funds raised will be allocated for well reactivation, production optimization, strategic acquisitions, and working capital [2][4] - The offering includes a provision for a forced conversion if the company's shares trade at $0.125 for ten consecutive days [2] Financial Details - The convertible debentures will have a two-year term and will be secured by a second-priority lien, subordinate to existing senior debt [2][4] - Interest on the debentures is set at 12%, calculated quarterly and payable at maturity or conversion date, with the option to pay in cash or shares [2][4] - The company may pay finders a fee of 7% in cash and 7% in warrants for their assistance in the offering [2][3] Operational Updates - Prospera has mobilized a service rig to its Cuthbert property for a multi-well program aimed at increasing production [6] - Approximately 20% of the company's oil production is now committed to a seasonal asphalt sales agreement, enhancing netbacks through better pricing and transportation efficiencies [5] - The company is advancing a polymer flood pilot project in the Luseland pool, with three potential locations identified for optimal polymer injection [7] Strategic Initiatives - The corporation is working on consolidating its balance sheet under one senior secured debt instrument to enhance capital flexibility and support its business plan [4] - The company is expected to release its Q1 2025 financial statements on May 21, 2025, followed by an investor conference call on May 22, 2025 [8]

CALGARY, Alberta, April 30, 2025 (GLOBE NEWSWIRE) -- Prospera Energy Inc. (TSX.V: PEI, OTC: GXRFF) (“Prospera”, “PEI” or the “Corporation”) In Q4 2024, Prospera Energy underwent a strategic transformation under new leadership, shifting its focus toward reactivating existing wells within its core Saskatchewan heavy oil assets. This realignment is designed to improve production reliability and predictability, ultimately strengthening cash flow and overall financial stability. As part of this strategic shift, ...