Core Viewpoint - Prospera Energy Inc. has demonstrated strong operational performance with significant production increases and strategic acquisitions, positioning itself for future growth in the oil and gas sector. Production and Operations - The company averaged gross production of 775 boe/d (97% oil) from August 1 to August 21, excluding the recently acquired White Tundra Petroleum assets [1] - Production at the Cuthbert pool averaged 295 boe/d (100% oil) during the same period, with enhanced winterization efforts underway [5] - Hearts Hill production averaged 202 boe/d (90% oil) and is undergoing waterflood pattern optimization [7] - Luseland production averaged 217 boe/d (99% oil), supported by ongoing workovers and field optimizations [8] Project Execution and Enhancements - Over 60 projects have been completed, with plans for additional reactivations and enhancements in Q4 [4] - Successful remediation projects have increased oil production from specific wells by over 300% [6] - The company is actively optimizing more than 10 wells daily, with various initiatives to improve production efficiency [9][10] Strategic Acquisitions - Prospera has successfully acquired White Tundra Petroleum for a total consideration of $2,620,000, enhancing its production base and providing new reactivation opportunities [13][14] - The acquisition includes a performance-based bonus contingent on achieving specific production targets [14] Joint Ventures and Partnerships - The company has entered a joint venture to develop its Mannville stack formation assets, with operations expected to commence by October 31, 2025 [16][18] - The partnership allows Prospera to maintain operational control while mitigating capital requirements [18] Reporting and Transparency - Prospera has published updated production and workover trackers, providing detailed insights into production rates and capital expenditures [12]

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]