Prospera Announces the Completion of Strategic Light Oil Property Acquisition
01 September 2022 - 2:30PM
Prospera Energy Inc. (PEI): TSX: PEI-V; OTC (USA): GXRFF; FRA
(Germany): OF6A
Message to Shareholders
PEI has strategically acquired this light oil
property to diversify its oil product mix and to realize higher
margin. This acquisition is entirely success-based eliminating any
requirement for large up front capital investment. This asset
provides PEI with a significant development opportunity along the
light-oil formation fairway. This light-oil asset is composed of
shallow pools that can be developed with vertical wells and
recompletion of existing wells. Operations of these wells can be
maintained with solution gas and pressure supported through water
injection resulting in low capital deployment and low operating
expense to maintain.
Light Oil Acquisition Summary
Prospera Energy wishes to provide details in
respect to its recent property acquisitions. Readers are referred
to its July 21, 2022, press release. The parties have amended a
purchase and sale agreement dated April 7, 2022, pursuant to which
the Corporation agreed to purchase an undivided 50% working
interest in exploration lands located near Cassels, Alberta for
$302,000 payable by the issuance of that number of convertible
debentures. The convertible debentures are now convertible into
common share units at the option of the holder at $0.075 during the
first year and $0.10 during the second year, bear interest at 8%
per annum, and are for a two-year term. Each unit consists of one
common share and one warrant exercisable at $0.075 for two years
from issuance, subject to the Corporation’s right to accelerate the
expiry date if the common shares of the Corporation trade at $0.30
for a period of 20 consecutive days. Applicable interest will be
payable in cash or shares at the then market price, at the option
of the Corporation. The vendor in this transaction was a private
Alberta corporation of which Sam David, the president of the
Corporation, had an ownership interest. The Corporation’s
independent directors negotiated the transaction and relied on
exemptions contained in MI 61-101 in that the market value did not
meet the 25% of the Corporation’s market cap.
The Corporation has the right to recomplete an
additional well, on the basis of such costs being split equally
with the Vendor. If successful, the Corporation will pay an
additional $405,500 (half cash and half in common shares at the
then 30-day weighted average) to purchase a 50% interest in such
well and lands.
If the first Option is exercised, the
Corporation will have the right to recomplete 2 further wells on
the same basis. If successful, the Corporation will pay $1,776,000
on the same basis as above for a 50% working interest in the
additional wells and property.
These transactions are subject to TSXV exchange
approval.
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 more information, please
contact:
Shawn Mehler, PREmail: 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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