- Prospera Energy recently provided an update on the second phase of the company’s restructuring plan
- With its initial five horizontal wells and incremental crude production tracking ahead of expectations, Prospera have announced plans to continue their second phase beyond its initially mooted ten well program
- The company has now announced that it will proceed with a low dilutive capital raise of $3 million, with proceeds destined to fund the exploration company’s ongoing capex
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, recently provided the market with an update on the second phase of its restructuring program. Boasting a business model centered around optimizing hydrocarbon recovery from legacy fields through innovative production practices and seeking to exploit the over 42,000 cumulative acres of territory across the company’s core assets, Prospera designed its second phase around drilling 10 horizontal well locations at its Cuthbert and Hearty Hills properties.
The second phase of Prospera Energy’s program has quickly advanced beyond initial expectations, with the company having already successfully drilled five horizontal wells of its multi-well infill horizontal development program (https://nnw.fm/zbAc0). Prospera further revealed that with two of its horizontal wells having already commenced production and the three additional horizontal wells set to commence production in subsequent weeks – the latter due to the firm’s desire to bring the wells on in a gentle way to accommodate the steady flow of the heavier viscous oil, Prospera’s gross production levels should touch 1,500 bpd by October (from 800 bpd the previous month).
With the company’s crude production tracking well ahead of initial projections and in a bid to capitalize on the current high Western Canadian Select price of $90 plus per barrel, Prospera have recently announced their intention to continue beyond their initially mooted ten well program, with the horizontal infill drilling program set to resume over the next few weeks. To finance their ongoing endeavors and upcoming capital expenditure plans, Prospera have announced a low dilutive capital raise with the company seeking to unveil a significant boost to their production capacity in the near future.
As such, Prospera Energy have announced that they will be undertaking a non-brokered private debt placement, seeking to raise gross proceeds of up to $3,000,000. Investors will be offered an interest rate of 14% per annum, with interest payments to be made quarterly for a term duration of 2 years. Separately and in addition to a quarterly coupon, debt holders will be in line to receive one common share per dollar of principal advanced at the time of investment – a measure designed to align debt holders’ interests with Prospera Energy’s significant growth ambitions. Nonetheless and in a nod to the company’s conservative capital structure program, Prospera have continued to focus on minimal dilution financing options, with the mooted capital raise plan ultimately leading to less than 1% equity dilution to the company.
Going forward and in 2023, Prospera’s corporate redevelopment strategy will continue its full-scale enhanced oil recovery (“EOR”) strategy, forecast to enhance recovery rates achieved in the ongoing second phase of the program by upwards of 10%. Additionally, the company intends to continue its acquisition strategy to diversify its product mix – with a goal of attaining a production profile comprised of 50% light oil, 40% heavy oil and 10% gas. With record growth in 2023 driving Prospera Energy’s net present value to new historical highs, the company’s designs on achieving an incremental production rate of 2,253 BPD in 2024 coupled with rapidly rising crude prices have set the stage for the company to achieve new highs in the months ahead.
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://nnw.fm/GXRFF
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