Prospera Energy Inc. Announces Q1 2022 Financial Results
08 August 2022 - 3:15PM
Prospera Energy Inc. ("
Prospera" or the
"
Corporation") (PEI: TSX-V; OF6B: FRA) is pleased
to release its Q1 2022 financial and operating results. Selected
financial and operational information outlined below should be read
in conjunction with the Company’s financial statements and related
management’s discussion and analysis for the quarter ended March
31, 2022.
First Quarter 2022
Highlights:
In the first quarter of 2022 PEI continued to
optimize wells to increase production while addressing all legacy
non-compliance operationally, financially, and environmentally.
During this quarter, the corporation successfully realized steady
production, continued to reduce legacy liability arrears (property
tax, surface lease, trades payable), and raised $1.5 million
through two private placements. Overall, PEI continues to improve
its financial position and liquidity while positioning the
Corporation for accelerated growth and development.
- Achieved Revenue of
$3.5 million CAD, an increase of 414% from the same period in
2021
- Q1 average
production rate was net 475 boe/d in Q1 2022, a 200% increase from
the same period in 2021 reflecting continued leverage of recent
working interest acquisitions
- Realized average
pricing of $81.07/boe in Q1 2022 vs. $47.22/boe in Q1 2021
- Reporting positive
operating netback of $1.1 million ($25.21/boe), $10.50/boe after
G&A + Interest
- Achieved positive
EBITDA of $195,590 in Q1 of 2022, up from a negative -$209,276 in
the same period of 2021
- Raised $1,478,573
through share and convertible debt private placements demonstrating
continued ability to improve liquidity and further reduce legacy
and ARO liabilities
- Completed initial
planning, engineering, & procurement of the Saskatchewan
horizontal well program; commercial demonstration program was
executed in Q2 2022
Operating Income Summary:
|
|
|
Increase
(Decrease) |
|
Q1 2022 |
Q1 2021 |
Value |
% |
Average sales
volumes: |
|
|
|
|
Natural gas (Mcf/d) |
46 |
|
30 |
|
16 |
|
52 |
% |
Oil and condensate (Bbl/d) |
467 |
|
153 |
|
314 |
|
205 |
% |
Total Net (Boe/d) |
475 |
|
158 |
|
317 |
|
200 |
% |
Liquids Composition (percentage) |
98 |
% |
97 |
% |
2 |
% |
2 |
% |
Average realized prices |
|
|
|
|
Natural gas ($/Mcf) |
4.40 |
|
2.91 |
|
1 |
|
51 |
% |
Oil ($/Bbl) |
81.96 |
|
48.21 |
|
34 |
|
70 |
% |
Average realized price ($/Boe) |
81.07 |
|
47.22 |
|
34 |
|
72 |
% |
Operating netback |
|
|
|
|
Natural gas |
18,052 |
|
7,977 |
|
10,075 |
|
126 |
% |
Oil |
3,444,996 |
|
665,171 |
|
2,779,825 |
|
418 |
% |
Total petroleum and natural gas sales |
3,463,047 |
|
673,148 |
|
2,789,899 |
|
414 |
% |
Royalties |
(391,498 |
) |
(44,562 |
) |
(346,936 |
) |
779 |
% |
Operating costs |
(1,994,809 |
) |
(538,039 |
) |
(1,456,770 |
) |
271 |
% |
Operating netback |
1,076,740 |
|
90,548 |
|
986,192 |
|
1089 |
% |
PEI’s Q1 2022 financial information is under the
Company’s issuer profile on SEDAR at www.sedar.com.
Message to Shareholders
PEI continues to restructure in order to
appreciate and stabilize production with safe operating
infrastructure and reliable service providers. Legacy arrears and
non-compliance optics have been difficult hurdles to overcome.
However, PEI restructuring efforts operationally, financially, and
environmentally have attributed to establishing an effective
relationship with the critical service providers. Year-End 2021
financial audit identified significant internal controls and
procedures that are being incorporated as policies, thus,
restructuring accounting practices to be prompt, accurate, and
reliable in order to be compliant and profitable.
In the second quarter of 2022, PEI has piloted
re-entry horizontal to customize the drilling process and the
mechanical tweaks to be compatible with the formation
characteristics and conditions. The geological and production risks
are low due to well control, interpreted 3D seismic, and production
history. These pilots will architect the horizontal program to
commence PEI’s second development phase to capture the significant
remaining reserves. PEI is pleased to announce pilots’ horizontal
wells are licenced and have begun executing the test pilot re-entry
horizontals to confirm PEI engineering and geological assessments.
The pilots will also assist in understanding the scope of the
economics of the drilling program. PEI is looking forward to
providing the results of the pilots.
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.comWebsite: 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.
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