CALGARY, Alberta, Aug. 19, 2022 (GLOBE NEWSWIRE) --
Prospera Energy Inc. PEI: TSX-V; OF6A: FRA
SecondQuarter2022Highlights:
In the second quarter of 2022, the renewed Prospera is pleased to realize milestone positive Net Income and EBITDA in Q2 2022, supported by robust commodity pricing. PEI continued to execute the restructuring objectives of production optimization, compliance, and ARO reduction. However, breakup weather conditions mitigated the activity level in Q2. Nevertheless, PEI initiated and executed the re-entry horizontal pilots to align the upcoming significant development drilling program. During this quarter PEI effectively:
- Achieved Revenue of $4.2 million in Q2 2022 vs. $437,572 in Q2 2021
- Realized average pricing of $125.78/boe in Q2 2022 vs. $63.82/boe in Q2 2021
- Reporting positive operating netback of $1.75 million ($52.44/boe), $29.84/boe after G&A + Interest
- Achieved positive EBITDA of $901,226 in Q2 2022, and $1,088,423 YTD 2022
- Reported Cash Flow from operations of $833,761 in Q2 2022 and $308,463 YTD 2022
- Realized Net Income of $311,335 in Q2 2022 vs. a Net Loss of ($502,721) in Q2 2021
- Attained a net production rate of 368 boe/d in Q2 2022 vs. 75 boe/d in Q2 2021
- Reduced ARO obligations for 10 wells amounting to $229,902 in Q2 2022 and 17 wells amounting to $386,398 YTD 2022
OperatingIncomeSummary:
Q2 2022 | Q2 2021 | Increase(Decrease) Value % | ||||||
| Averagesalesvolumes: | ||||||||
| Natural gas (Mcf/d) | 46 | 13 | 33 | 252 | % | |||
| Oil and condensate (Bbl/d) | 360 | 73 | 287 | 393 | % | |||
| Total Net (Boe/d) | 368 | 75 | 293 | 390 | % | |||
| Liquids Composition (percentage) | 98 | % | 97 | % | 1 | % | 1 | % |
| Averagerealizedprices | ||||||||
| Natural gas ($/Mcf) | 6.48 | 2.92 | 4 | 122 | % | |||
| Oil ($/Bbl) | 127.53 | 65.15 | 62 | 96 | % | |||
| Average realized price ($/Boe) | 125.69 | 63.82 | 62 | 97 | % | |||
| Operatingnetback | ||||||||
| Natural gas | 26,975 | 3,349 | 23,626 | 705 | % | |||
| Oil | 4,177,440 | 434,223 | 3,743,217 | 862 | % | |||
| Total petroleum and natural gas sales | 4,204,416 | 437,572 | 3,766,844 | 861 | % | |||
| Royalties | (695,104 | ) | (66,784 | ) | (628,320 | ) | 941 | % |
| Operating costs | (1,758,049 | ) | (357,368 | ) | (1,400,681 | ) | 392 | % |
| Operatingnetback | 1,751,262 | 13,420 | 1,737,842 | 12950 | % | |||
Above should be read in conjunction with the Company's financial statements and related management's discussion and analysis for the quarter ended June 30, 2022. PEI's Q2 2022 financial information can be found under the Company's issuer profile on SEDAR at www.sedar.com.
Messageto Shareholders
The restructured PEI is focused upon continuously improving its financial position through 2022 by executing the following financial strategies:
- Reduce historical AP liabilities by a further $3million (in addition to the $1 million YTD 2022 reduction already achieved) by using cash flow generated from operations
- Reduce decommissioning liabilities by $5million by the end of 2022 through PEI's ongoing liability management program
- Access additional capital to fund the upcoming significant development drilling program
- Adopt a series of robust internal controls to ensure the reliability and accuracy of PEI's financial information
- Further increasing asset value and production levels through the re-entry horizontal drilling program, well work over/recompletions, additional property acquisition; substantiated through 3rd party reserve valuation
The above financial strategies will improve the profitability of PEI while also reducing historical shareholder deficit.
AboutProspera
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.
ForFurtherInformation:
Shawn Mehler, PR
Email: shawn@prosperaenergy.com
Website: www.prosperaenergy.com
FORWARD-LOOKINGSTATEMENTS
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"andsimilarexpressions.Allstatementsotherthanstatementsofhistorical fact,includedinthisrelease,including,withoutlimitation,statementsregardingfutureplansandobjectivesofthe Corporation,areforwardlookingstatementsthatinvolverisksanduncertainties.Therecanbenoassurancethat such statements willproveto beaccurateand actualresultsand futureevents could differmateriallyfromthose anticipatedinsuchstatements.
AlthoughProsperabelievesthattheexpectationsandassumptionsonwhichtheforward-lookingstatementsare based arereasonable,unduerelianceshould notbeplaced on theforward-looking statements becauseProspera can givenoassurancethattheywillprovetobecorrect.Sinceforward-lookingstatementsaddressfutureeventsand conditions,bytheirverynaturetheyinvolveinherentrisksanduncertainties.Actualresultscoulddiffermaterially fromthosecurrentlyanticipateddueto a numberoffactorsand risks.Theseinclude,butarenot limitedto,risks associatedwith theoilandgas industry in general(e.g.,operationalrisksindevelopment, explorationand 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,andhealth,safetyandenvironmentalrisks),commoditypriceandexchangeratefluctuationsand uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects orcapitalexpenditures.
The reader is cautioned thatassumptions used inthe preparationof any forward-looking information mayprove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a resultofnumerousknownandunknownrisks,uncertainties,andotherfactors,manyofwhicharebeyondthecontrolof 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. Theforward-looking statements contained in this news releaseare madeas of thedate of this news release, and Prospera does not undertake any obligation to update publicly or to revise any of the included forward-lookingstatements,whetheras aresultofnew information, future eventsorotherwise, exceptas expresslyrequiredbyCanadiansecuritieslaw.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibilityfortheadequacyoraccuracyofthisrelease.
