Prospera Energy (TSX.V: PEI) (OTC: GXRFF) (FRA: OF6B), a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in western Canada, is reporting on drilling progress and has announced a capital raise. The company is undertaking a nonbrokered private placement of debt financing with plans to raise up to $3 million, offering holders’ interest of 14% per annum, with interest payments to be made quarterly for a term of two years. As part of the offering, holders will also receive one common share for each dollar of principal paid at the time of investment. According to the announcement, Prospera Energy has already received multiple-lead orders of more than $1 million. In addition, the company has successfully drilled five horizontal wells of the multi-well infill horizontal development program. Two of the wells have started production while the remaining three will begin production in the coming weeks.
The company is reporting PEI gross production levels reaching 800boepd with 400boepd behind pipe to accommodate development. Prospera anticipates that in the next month a gross production level of 1,500boepd will be reached from the resuming of behind the pipe production combined with additional production from the new horizontal wells. “The new horizontal wells will be brought on strategically in a gentle way to accommodate the heavier viscous oil to achieve steady flow peak rates over the next few months,” the company stated in the press release. “The horizontal infill drilling program will resume in the next few weeks to allow for lease preparations and access. Due to the efficient collaboration of services and results encountered, Prospera has elected to continue beyond the current 10-well program. Prospera will continue the horizontal infill drilling transformation from vertical wells through the winter to next year break up. The quick turnaround to bring this specific horizontal production online allows Prospera to capitalize on the current high Western Canadian Select price of $90 plus per barrel. Therefore, low dilutive capital raise is proposed to continue the drilling that will add significant incremental production to capture substantial recoverable reserves. Furthermore, medium oil development will also commence concurrently.
To view the full press release, visit https://ibn.fm/IJIh9
About Prospera Energy Inc.
Prospera Energy is a publicly traded energy company based in western Canada, specializing in the exploration, development and production of crude oil and natural gas. Prospera Energy has announced a mid-August spud of PEI’s phase 2 restructured development program intended to increase production. The phase 2 development entails the drilling of 10 horizontal wells in heavy oil and 8 slanted wells in medium-light oil to accelerate growth and capture the significant remaining reserves (400 million bbls). These horizontal laterals and slanted wells will allow PEI to increase production by approximately 1,000bpd with recovery of approximately 100Mstb per well. PEI will reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path. Phase 3 of Prospera’s corporate redevelopment strategy will focus on continuing the company’s horizontal modular development to appreciate production and optimize recovery of remaining reserves. Prospera intends to implement full-scale EOR applications based on the results of its phase 2 pilot program, which is forecast to optimize recovery by greater than 10%. Prospera also intends to continue its acquisition strategy to diversify its product mix. Its goal is to attain 50% light oil, 40% heavy oil and 10% gas. PEI continues to apply efforts to minimize its environmental footprint. Also, efforts to reduce and eventually eliminate emissions, alongside pursuing innovative ESG methods to enhance API quality, thereby achieving higher margins and eliminating the need for diluents. For more information, visit the company’s website at www.ProsperaEnergy.com.
NOTE TO INVESTORS: The latest news and updates relating to GXRFF are available in the company’s newsroom at https://ibn.fm/GXRFF
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