Prospera Energy Announces Operations Update

Rhea-AI Summary

Prospera Energy (GXRFF) reports strong operational performance with gross production averaging 880 boe/d (94% oil) from June 1-15, 2025, marking six consecutive months of growth. The company's three main assets show robust performance: Cuthbert pool at 350 boe/d, Hearts Hill at 245 boe/d, and Luseland at 179 boe/d. Western Canadian Select differentials remain favorable at under $9/bbl, enhancing revenue and cash flow. The company is actively optimizing operations through waterflood initiatives and well workovers across its heavy oil properties. Prospera amended its promissory note, increasing it by $1.2M to $16.7M, maintaining 12% interest and two-year maturity. The company also settled $72,765.48 in interest expense through share issuance and announced its AGM for June 19th.

Positive

• Production growth for six consecutive months, reaching 880 boe/d (94% oil)
• Record-low WCS differentials under $9/bbl improving revenue and cash flow
• Strong individual asset performance: Cuthbert (350 boe/d), Hearts Hill (245 boe/d), and Luseland (179 boe/d)
• Successfully transforming NRA wells into producing assets with PDP reserves

Negative

• Increased debt load with promissory note amendment adding $1.2M to reach $16.7M total
• Share dilution through issuance of 1.45M shares for debt settlement
• Pending TSXV approval required for recent loan amendment

CALGARY, Alberta, June 17, 2025 (GLOBE NEWSWIRE) -- Prospera Energy Inc. (TSX.V: PEI, OTC: GXRFF) (“Prospera”, “PEI” or the “Corporation”)

Prospera Energy remains committed to providing stakeholders with transparent, timely, and data-driven updates on operational performance and field developments. This monthly report delivers key insights into the company’s production trends, optimization initiatives, and strategic advancements. All production figures represent the Company’s gross sales, reported in accordance with NI 51-101 and applicable industry standards.

Prospera continues to demonstrate strong operational performance, averaging gross production of 880 boe/d (94% oil) from June 1^st to June 15^th. This sustained growth follows successful spring break-up maintenance, Cuthbert water tank repairs, and extensive well optimizations completed in late May after lease roads dried up and became accessible. This marks the sixth consecutive operations update reporting production growth. Notably, these figures exclude production from the recently acquired White Tundra Petroleum assets, which is pending acceptance by the TSXV. A comprehensive well-by-well analysis and waterflood optimization review have yielded valuable insights, which are being actively implemented throughout the summer. Concurrently, Prospera’s service rig is diligently addressing the company’s inventory of over 150 workover and reactivation wells across its heavy oil properties, further enhancing operational efficiency.

Western Canadian Select (WCS) differentials continue to remain at record-low levels, recently trading at less than $9/bbl under US Benchmark West Texas Intermediate (WTI). Given Prospera’s predominantly heavy oil production base, these favorable pricing conditions are contributing to enhanced revenue and cash flow. This improved netback supports the Corporation’s strategy to reallocate capital efficiently into high-impact projects, as it finalizes plans for its Q3 and Q4 service rig programs.

Cuthbert
Production at the Cuthbert pool has been stable, averaging 350 boe/d (100% oil) from June 1^st to June 15^th, driven by ongoing well speed-ups and waterflood optimization efforts along with completion of infrastructure upgrades. Two disposal wells underwent injector cleanouts using solvent-based chemicals, yielding promising initial results that enhance out-of-zone water disposal and improve waterflood pattern efficiency and injection volumes. Additionally, an overhaul of the third injection pump has been completed, positioning it for immediate service. A high-impact remediation project on the 16-28 HZ well is underway, including the installation of a downhole bridge plug to isolate a section of the well previously drilled into coal and water, further optimizing operational performance.

Hearts Hill
Production at the Hearts Hill pool continues to trend upward, averaging 245 boe/d (89% oil), with oil cuts steadily improving due to effective load fluid recovery, well speed-ups, and ongoing waterflood optimization efforts. The Corporation is conducting a line-by-line review of all pipelines in the area to validate injection volumes, ensure pipeline integrity, and prepare for further field reactivations. Additionally, Prospera is advancing technical studies on conformance gel injections to mitigate water channeling, while exploring uphole potential in zones, including the proven Sparky sand and the prospective Waseca and Rex sands.

Luseland
The Corporation continues to report strong production growth at the Luseland pool, averaging production of 179 boe/d (100% oil), bolstered by successful post-spring break-up workovers and reactivations. Notably, the 01-17 well is consistently producing at 15 bbls/d, while the 03-09 well continues to climb, now producing 17 bbls/d with further upside potential through ongoing optimization efforts. The 04-33 well, carefully managed through a significant sand influx, underscores the company’s operational expertise as it is now producing 22 bbls/d. These achievements reinforce Prospera’s strategic focus on reactivating legacy wells with substantial original oil in place (OOIP). By bringing these wells back online, the company is successfully transforming assets previously classified as No Reserves Associated (NRA), with only Asset Retirement Obligations (ARO), into actively producing wells with meaningful Proved Developed Producing (PDP) reserves and associated cash flow.

Cash Flow and Key Wells Report
Prospera is pleased to publish its inaugural cash flow and key wells report on the website which will be a monthly report released at the same time as our monthly operational update. Critical information including monthly revenue, operating costs, and field operating cash flows will be reported along with capital expenditures. Additionally, production updates including detailed information and graphs will be shared on numerous key wells as the company enhances its transparency and further proves out its workover and reactivation model.

Annual General Meeting
Prospera Energy Inc. invites shareholders to attend its upcoming Annual General Meeting on June 19^th at 11:00 AM MST, held at the Calgary Petroleum Club (Trophy Room), 319 5 Ave SW, Calgary, AB T2P 0L5. Management will provide an overview of recent operational progress and future initiatives. All stakeholders are encouraged to participate.

Loan Amendment Update
The Corporation announces a further amendment to its $11,000,000 promissory note, originally dated June 7, 2024, in collaboration with its principal lender. Following previous increases, an additional $1,200,000 has been added, bringing the total principal amount to $16,700,000. The note retains its original terms, including a 12% interest rate and a two-year maturity, with no other changes. This amendment remains subject to acceptance by the TSXV.

Shares for Debt
As previously announced on March 25^th, 2025, the Corporation settled $72,765.48 in outstanding interest expense owed to debenture holders through the issuance of 1,455,309 common shares at a price of $0.05 per share. The securities are subject to a four month hold period from the date of closing. The transaction was approved by the TSX Venture Exchange.

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 Hills, 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, PR
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.

FAQ

What is GXRFF's current production level and oil percentage?

Prospera Energy's current gross production averages 880 boe/d with 94% oil content from June 1-15, 2025.

How much did Prospera Energy increase its promissory note in June 2025?

Prospera increased its promissory note by $1.2 million, bringing the total principal amount to $16.7 million with a 12% interest rate and two-year maturity.

What is the production breakdown for GXRFF's main assets?

Cuthbert pool produces 350 boe/d (100% oil), Hearts Hill averages 245 boe/d (89% oil), and Luseland generates 179 boe/d (100% oil).

What is the current WCS differential affecting Prospera Energy's revenue?

The Western Canadian Select (WCS) differential is trading at less than $9/bbl under US Benchmark West Texas Intermediate (WTI).

When is Prospera Energy's Annual General Meeting in 2025?

Prospera Energy's AGM is scheduled for June 19th, 2025, at 11:00 AM MST at the Calgary Petroleum Club.