Letter to Prospera Shareholders: Eighteen Months of Transformational Execution
Rhea-AI Summary
Prospera Energy (OTC: GXRFF) reports 18 months of restructuring and operational execution after management and board changes on October 31, 2024. Key outcomes include 64 workovers, 21 reactivated wells, Luseland production rising to 258 BOE/d (a 378% increase), and an inventory of >140 reactivation targets, 41 ranked Tier 1. The company cites a rebuilt cost structure, renegotiated service agreements, and a capital plan to reinvest free cash flow into additional reactivations while holding base production at Cuthbert and Hearts Hill.
The letter highlights a 700% increase in operating cash flow per barrel between February and March and notes >400 million barrels of original oil in place with current recovery factors of 2–8% across much of the pool.
Positive
- Luseland production +378% to 258 BOE/d
- Completed 64 workovers and reactivated 21 wells
- Inventory of >140 reactivation targets; 41 Tier 1
- Operating cash flow per barrel +700% Feb–Mar
Negative
- Commodity price exposure at $60–70 WTI left thin margins
- Current recovery factors are low at 2–8% across pools
- Growth depends heavily on successful reactivations
News Market Reaction – GXRFF
In the May 1 session, GXRFF gained 11.70%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Prospera Energy Inc. (TSXV: PEI) (OTC Pink: GXRFF)
Calgary, Alberta--(Newsfile Corp. - May 1, 2026) -
Dear Prospera Shareholders,
The last eighteen months have been the most consequential in Prospera Energy's history. Since management and board restructured on October 31, 2024, we have spent every day building the operational, strategic, and cultural foundation of a disciplined heavy oil company designed to compound shareholder value for years to come. This letter is an account of that work and why I believe Prospera is primely positioned to continue to deliver on the strategy we have so relentlessly built.
Eighteen months ago, our new management team took over a Company with promising assets carrying significant latent value waiting to be unlocked. We acted decisively and without delay. We streamlined personnel, re-engineered operations, curated business plans from the ground up, and made the strategic call to rebuild Prospera around a new and reliable business strategy focused on low-risk, capital-efficient reactivations. All of this was in a
We have completed 64 workovers and brought 21 wells back online through reactivations. At Luseland, production has climbed from 54 BOE/d to 258 BOE/d, a
The price of oil is not within our control. The cost at which we produce a barrel is. Through tighter field execution, renegotiated service agreements, and the operational discipline that now runs through every level of this Company, we have rebuilt our cost structure to into a durable platform for disciplined growth. That discipline protected us through the commodity pricing downturn and is what makes today's incredible price environment so meaningfully accretive with operating cash flows per barrel increasing
On behalf of our entire Prospera team: thank you for your continued support, resilience and for your confidence in Prospera through every chapter of this transformation. The Company you own today is fundamentally different operationally, organizationally, and culturally, from the one that existed eighteen months ago. The work to build Western Canada's next growth-oriented junior heavy oil producer is well underway and I am confident in the path we are on, our team executing it, and the value we are building.
Sincerely,
Shubham Garg
Chairman of the Board
Prospera Energy Inc.
About Prospera
Prospera Energy Inc. is a publicly traded Canadian energy company specializing in the exploration, development, and production of crude oil and natural gas. Headquartered in Calgary, Alberta, Prospera is dedicated to optimizing recovery from legacy fields using environmentally safe and efficient reservoir development methods and production practices. The company's core properties are strategically located in Saskatchewan and Alberta, including Cuthbert, Luseland, Hearts Hill, and Brooks. Prospera Energy Inc. is listed on the TSX Venture Exchange under the symbol PEI and the U.S. OTC Market under GXRFF.
Prospera reports gross production at the first point of sale, excluding gas used in operations and volumes from partners in arrears, even if cash proceeds are received. Gross production represents Prospera's working interest before royalties, while net production reflects its working interest after royalty deductions. These definitions align with ASC 51-324 to ensure consistency and transparency in reporting.
For Further Information:
Shawn Mehler, IR
Email: investors@prosperaenergy.com
Chris Ludtke, CFO
Email: cludtke@prosperaenergy.com
Shubham Garg, Chairman of the Board
Email: sgarg@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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295415