Prospera Energy Inc. announces record profitability in Q3 2022 as restructuring momentum accelerates

18.11.2022  |  GlobeNewswire

CALGARY, Nov. 18, 2022 - Prospera Energy Inc. PEI: TSX-V; OF6A: FRA; OTC: GXRFF

2022 Q3 Highlights:

In the third quarter of 2022, Prospera continued the restructuring efforts to be profitable and compliant, both environmentally & regulatorily. PEI accelerated the restructuring momentum by executing a significant well recompletion and reactivation work over program during Q3. As a result, PEI September exit production rate (gross) of 710 BOE/d is 40% higher than the Q2 2022 production average.

During this quarter the Corporation effectively:

• Achieved oil and gas revenue of $3,752,046 in Q3 2022 vs. $982,966 in Q3 2021
• Achieved positive EBITDA of $1,728,611 in Q3 2022 vs. negative EBITDA of ($1,118,624) in Q3 2021
• Realized Net Income of $938,968 in Q3 2022 vs. Net Loss ($1,270,030) in Q3 2021
• Attained a net production rate of 484 boe/d in Q3 2022 vs. 169 boe/d in Q3 2021; September sales were 710 boe/d (gross), increasing from 557 boe/d (gross) in July with an average net working interest of 78%. On target for 1,500 boe/d (gross) 2022 exit rate
• Reported positive Cash Flow from Operations of $2,801,621 for YTD 2022 vs. negative Cash Flow from Operations of ($3,919,219) for YTD 2021
• Realized average revenue pricing of $85.09/boe in Q3 2022 vs. $63.18/boe in Q3 2021. This represents a 34.7% increase in pricing year over year
• Operating Costs per boe have declined from $52.56/boe to $40.07/boe as restructuring momentum accelerates
• Reported positive operating netback of $1,532,985 or $34.78/boe, $24.74/boe after G&A + Interest

Operating Income Summary:

Above should be read in conjunction with the Company's financial statements and related management's discussion and analysis for the quarter ended September 30, 2022. PEI's Q3 2022 financial information can be found under the Company's issuer profile on SEDAR at www.sedar.com.

Message to Shareholders

• As ESG initiatives continue, PEI has abandoned 16 wells amounting to $599,812 in decommissioning liability (ARO) reduction in Q3 2022; 41 wells amounting to $986,209 in ARO reduction for YTD 2022. PEI's commitment to the environment remains a major focus
• PEI's management and advisors have spent considerable time interpreting the drilling and completion results of the two re-entry horizontal pilot wells resulting in a substantial Q4 development plan. This bodes well for PEI meeting the target 2022 exit production rate

About Prospera

Prospera is a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in Western Canada. Prospera will use its experience to develop, acquire, and drill assets with potential for primary and secondary recovery.

For Further Information:

Shawn Mehler, PR
Email: shawn@prosperaenergy.com
Website: www.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 the 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.