Prospera Announces Significant Development Plan to Increase Production
CALGARY, Alberta, Sept. 28, 2022 (GLOBE NEWSWIRE) -- Prospera Energy Inc. (PEI): TSX: PEI-V; OTC (USA): GXRFF; FRA (Germany): OF6B
The reorganized efforts of Prospera have resulted in increased gross production from 80bpd to 800bpd, Q2 revenue grew by 860%, reserve asset value grew from -3.4m$ to 56.2m$ from the previous year. Settled 14m$ of legacy arrears, reduced ARO liability by 1.5m$ and addressed over 400 legacy non-compliances to be fully regulatory & environmentally compliant. Further, PEI acquired 50% light oil interests to diversify product mix and to realize higher margin. In addition, strategic acquisition to expand in the core area that can double the current operation and inventory to attain 5,000bpd over the next 24 months. PEI is expected to exit this year at 1,500bpd.
PEI is now positioned to accelerate growth with the reserve base at hand. PEI planned three horizontal pilot wells to assess and improve technical and economic efficiency to effectively capture the significant remaining reserves (400million bbls). These horizontal laterals allow PEI to optimize production and recovery while reducing the environmental footprint by eliminating the numerous vertical leases along the lateral path.
Two pilots were completed in Q2, 2022. These laterals encountered structure, pay, and oil as per geological, seismic, and reservoir prognosis. This pay was porous and highly permeable held together by the medium heavy oil. Also, encountered unexpected prolific gas in the build section. The final pilot is expected to spud in the middle of October 2022 tweaked from the learnings of the first two pilots. PEI is pleased with the encouraging results and the learnings from the two pilots. The final pilot is expected to deliver initial production rate 75-100bpd to recover 100Mstb at a cost of approximately 800k$ per well.
PEI has a large drilling inventory of 150+ horizontal locations. This winter drilling program will commence with a ten well program that can approximately add an additional 750bpd at a low decline. PEI will continue to execute the liability management plan to reduce the asset retirement obligation and fixed operating expense by abandoning the numerous vertical leases along the lateral path. Prospera initiatives are to incorporate innovative technologies to reduce carbon emission, increase carbon capture, and to improve margin.
This horizontal development plan will allow PEI to become a low-cost producer with significant production increase.
About Prospera Energy
Prospera Energy Inc. is a public oil and gas exploration, exploitation, and development company focusing on conventional oil and gas reservoirs in Western Canada. Prospera uses its experience to develop, acquire, and drill assets with potential for primary and secondary recovery.
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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.
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