Prospera Energy Commits to Cleanup Schedule for All Saskatchewan Environmental Obligations and Cancels Equity Financing

Saskatchewan licence suspensions begin in stages November 29, while Prospera seeks a performance-based path to rescind the Order.

Rhea-AI Summary

Prospera Energy (GXRFF) has committed to bringing all named Saskatchewan environmental sites to the monitoring stage by January 22, 2027. The schedule covers 13 sites under Minister's Order MRO 98/26, with topsoil replacement and seeding planned for spring 2027. Since October 31, 2024, remediation spending totals $2.83 million; 11 sites are at or past Phase II assessment.

Minister's Order MRO 196/26 suspends Saskatchewan licences in stages beginning November 29, 2026. Prospera has requested a written, performance-based path to rescind it. All active wells remain online and producing. Prospera cancelled its $12 million equity financing, scheduled to close November 7, because of the Order. Open inspection items have fallen from 146 in October 2024 to 58. The company has confirmed support from its senior secured lender and key stakeholders for its cleanup commitment.

18 points · 0 major

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2 major · 6 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointLuseland production increased from 54 to 284 bbl/d through inactive-well reactivations.
• Moderate pointFirst ten restarted wells generated $2.19 million in profit; nine paid out in about 11 months on average.
• Minor pointAll active wells remain online and producing at this time.
• Minor pointOpen inspection items fell from 146 in October 2024 to 58, with 352 of 410 items closed.
• Minor pointEnvironmental work removed 6,662 tonnes of contaminated soil and isolated or repaired four failed pipelines.

13 minor points

• Minor pointSite assessments place 11 of 13 sites at or past Phase II.
• Minor point. Forward-looking: it has not happened yet and may not happen.Cuthbert spill-pile removal at 08-28, 02-28 and 01-28 is scheduled for November 15, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Monitoring is targeted by November 27, 2026 at Hearts Hill 04-20, 16-28, 05-20 and Luseland 12-28.
• Minor point. Forward-looking: it has not happened yet and may not happen.Monitoring is targeted by December 15, 2026 at Hearts Hill 09-20 and both 09-19 sites.
• Minor point. Forward-looking: it has not happened yet and may not happen.Phase II assessments at Cuthbert 02-02 and 12-27 are scheduled for completion by December 25, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Hearts Hill 08-28 is scheduled to reach monitoring by December 31, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.All five Cuthbert sites are scheduled to reach monitoring by January 22, 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.Topsoil replacement and seeding on reclaimed areas are planned for spring 2027.
• Minor pointAnnulus testing for 2026 is complete, and packer repairs have been completed.
• Minor pointThe Vegetation Management Plan is complete, with all three areas cut and sprayed multiple times.
• Minor pointThe Abandonment, Reclamation, and Reactivation Plan is complete, with a 30-well program costed.
• Minor pointVendors with outstanding balances declined from 660 to 306 since management changed in October 2024.
• Minor pointThe senior secured lender and key stakeholders support the cleanup commitment.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.Minister's Order MRO 196/26 suspends Saskatchewan licences in stages beginning November 29, 2026.
• Major pointThe $12 million equity financing, scheduled to close November 7, 2026, was cancelled because of the Order. 1.4× market cap
• Moderate pointSpill response, assessment and remediation have cost $2.83 million since October 31, 2024. 33% of market cap
• Moderate pointThe first ten restarted wells cost $1.14 million. 13% of market cap
• Minor pointBoth Hearts Hill 09-19 sites await Ministry approval to backfill.
• Minor pointWells that failed annulus testing are shut in.

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Calgary, Alberta--(Newsfile Corp. - November 6, 2026) - Prospera Energy Inc. (TSXV: PEI) (OTC Pink: GXRFF) ("Prospera", "PEI", the "Corporation", or the "Company") reaffirms its commitment to clean up every outstanding environmental obligation site and resolve every compliance issue across its Saskatchewan fields, working closely with the Saskatchewan Ministry of Energy and Resources (the "Ministry"), landowners, rural municipalities and local vendors. The Company has confirmed the support of its senior secured lender and key stakeholders on this commitment and all its active wells remain online and producing at this time.

Prospera's Commitment: Every Site at the Monitoring Stage by January 22, 2027

Prospera is committed to cleaning up the 13 environmental sites named in Minister's Order MRO 98/26, most of which predate current management, and to restoring each to its original condition. To date since Oct 31, 2024, the Company has invested $2.83 million in spill response, site assessment and remediation, logged 1,646 field hours with local crews, hauled 6,662 tonnes of contaminated soil to an approved landfill and isolated or repaired four failed pipelines. 11 of the 13 sites are at or past Phase II assessment. Prospera has given the Ministry the following site-by-site schedule:

• November 15, 2026: legacy spill piles at Cuthbert 08-28, 02-28 and 01-28 removed, with confirmatory testing to begin.
• November 27, 2026: Hearts Hill 04-20, 16-28 and 05-20 and Luseland 12-28 at the monitoring stage, with remediation as laboratory results are received.
• December 15, 2026: Hearts Hill 09-20 and both 09-19 sites at the monitoring stage; results for the 09-19 sites have been submitted to the Ministry's Kindersley office and are awaiting their approval to backfill.
• December 25, 2026: Phase II assessments complete at Cuthbert 02-02 and 12-27.
• December 31, 2026: Hearts Hill 08-28, the site of a September 2026 pipeline release, at the monitoring stage.
• January 22, 2027: all five Cuthbert sites at the monitoring stage.

Topsoil replacement and seeding on reclaimed areas will follow in spring 2027.

Resolving Compliance Items

The Ministry's inspection records show open items reduced from 146 in October 2024 to 58 today, with 352 of 410 items closed.

• All 2026 annulus testing is complete; failed wells are shut in and packer repairs have been completed.
• The Vegetation Management Plan is complete, with all three areas cut and sprayed multiple times this season.
• Inspection corrections and fixes have been uploaded consistently to the Ministry's IRIS system for re-inspection.
• The Abandonment, Reclamation, and Reactivation Plan is complete, and a 30-well program has been costed.
• Every well on an expired freehold lease has been reviewed and is being renewed or abandoned.

Working with the Ministry

Prospera is working hand in hand with the Ministry to see this through. It has met with the Ministry and filed a written progress report every two weeks for the past 2 years, has offered weekly reporting until every site is at monitoring stage or closed, has invited Ministry staff to visit the sites, and follows the Ministry's written guidance on what each site must show to reach the monitoring stage. A dedicated compliance team reports directly to the CEO and reviews every obligation weekly.

Minister's Order MRO 196/26 suspends Prospera's Saskatchewan licences in stages beginning November 29, 2026. Prospera has asked the Province for a written, performance-based path to rescind the Order, based on the milestones the Company meets over the next 7 to 21 days and the significant environmental field work that was already underway throughout September, October, and early November.

Working with the Community

Prospera is a long-term partner to the communities around its fields:

• Landowners: Prospera has paid $6.6 million in surface lease payments to area farmers and landowners since 2021, and an active reclamation program is cleaning up leases left by prior operators.
• Local vendors: Since new management took over in October 2024, Prospera has reduced the legacy and active vendors it inherited who still have outstanding balances from 660 to 306, settling one creditor at a time through active communication. Its field work is carried out by local trucking, service-rig, chemical and field-service companies whose outstanding balances have been brought down considerably both in dollar amounts and aging schedule.
• Reactivating existing wells: Through reactivations of inactive wells, Prospera has taken Luseland production from 54 to 284 bbl/d. Its first ten restarted wells cost $1.14 million and have generated $2.19 million in profit, and nine of the ten have paid out in about 11 months on average, bringing work and commerce back to the towns around Luseland, Macklin and Kindersley.
• Beyond the field: Prospera sponsors Stigma-Free Mental Health's ILLUMINATE event on oil-sector and rural mental health; charity events for Brown Bagging for Calgary's Kids, pediatric cancer care and youth sport; the Straz Strong Foundation of Humboldt Broncos survivors; and University of Alberta Petroleum Engineering student events.

"We are committed to restoring every one of these sites and resolving every outstanding compliance item at an accelerated pace, and our crews have been and are on site today," said Shubham Garg, Chairman and CEO of Prospera. "We have given the Province a firm schedule, with every site at the monitoring stage by January 22, and we will meet it. Saskatchewan's landowners, municipalities and local businesses are our partners in this, and we intend to have our fields clean, compliant and a source of good work for the communities around them, including obligations we inherited when our new management team came into Prospera in October 2024."

Cancellation of Equity Financing

As a result of Minister's Order MRO 196/26 (the "Order"), Prospera has cancelled its previously announced $12 million equity financing which had been scheduled to close on November 7, 2026.

Commitment to Updates

Prospera will issue a further update on its environmental remediation program and progress at every key milestone, and issue a further update on its discussions with the Ministry regarding the Order as material developments occur. The update will report progress against each milestone in the schedule above, including the removal of the Cuthbert spill piles by November 15 and the sites reaching monitoring stage by November 27. Prospera will continue to report regularly to the Ministry and will keep shareholders, landowners and the communities where it operates informed as the work proceeds.

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 CSA Staff Notice 51-324 to ensure consistency and transparency in reporting.

For Further Information:

Shawn Mehler, PR
Email: shawn@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. Forward-looking statements in this news release include, without limitation, statements regarding the Corporation's environmental remediation program and its targeted completion dates, its compliance program and engagement with the Ministry, its request for a performance-based path to rescind Minister's Order MRO 196/26 and the potential effect of that Order on the Corporation's operations, production, cash flow, financing and lenders, and the cancellation, postponement and any relaunch of the Corporation's equity financing. Achievement of the remediation schedule is subject to, among other things, weather and winter field conditions, laboratory turnaround, the availability of contractors, equipment and capital, and the timing of regulatory reviews, and there is no assurance that the Ministry will rescind, suspend or amend the Order, or on what terms.

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/322977

FAQ

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When does Prospera Energy plan to bring its Saskatchewan environmental sites to monitoring?

Prospera has committed to bringing all 13 named sites to the monitoring stage by January 22, 2027. Topsoil replacement and seeding on reclaimed areas are planned for spring 2027.

Why did Prospera Energy cancel its $12 million equity financing?

Prospera cancelled the $12 million equity financing because of Minister's Order MRO 196/26. The financing had been scheduled to close on November 7, 2026. The Order suspends Saskatchewan licences in stages beginning November 29, 2026.

How is Prospera Energy reporting cleanup progress to Saskatchewan regulators?

Prospera has met with the Ministry and filed written progress reports every two weeks for the past two years. It has offered weekly reporting until every site reaches monitoring or closure, invited Ministry staff to visit the sites, and assigned a dedicated compliance team reporting directly to the CEO to review obligations weekly.