Prospera Energy Inc. (TSXV: PEI) (OTC Pink: GXRFF)
Calgary, Alberta--(Newsfile Corp. - May 1, 2026) -
Dear Prospera Shareholders,
The last eighteen months have been the most consequential in Prospera Energy's history. Since management and board restructured on October 31, 2024, we have spent every day building the operational, strategic, and cultural foundation of a disciplined heavy oil company designed to compound shareholder value for years to come. This letter is an account of that work and why I believe Prospera is primely positioned to continue to deliver on the strategy we have so relentlessly built.
Eighteen months ago, our new management team took over a Company with promising assets carrying significant latent value waiting to be unlocked. We acted decisively and without delay. We streamlined personnel, re-engineered operations, curated business plans from the ground up, and made the strategic call to rebuild Prospera around a new and reliable business strategy focused on low-risk, capital-efficient reactivations. All of this was in a $60-70 WTI pricing environment during 2025 which left no margin for error.
We have completed 64 workovers and brought 21 wells back online through reactivations. At Luseland, production has climbed from 54 BOE/d to 258 BOE/d, a 378% increase in eighteen months, driven entirely by reactivations, optimizations, and proactive management. Beneath us sits more than 400 million barrels of original oil in place, with current recovery factors at just 2 to 8 percent across much of the pool. More than 140 reactivation targets remain in our inventory, 41 of them ranked Tier 1. Every well we bring back online validates our thesis and generates exceptional netbacks, and every barrel we recover today pays for the capital to bring online the barrels we recover through additional reactivations. These reactivations remain the highest risk-adjusted-return use of capital available to us, and we will keep deploying as such with discipline and conviction.
The price of oil is not within our control. The cost at which we produce a barrel is. Through tighter field execution, renegotiated service agreements, and the operational discipline that now runs through every level of this Company, we have rebuilt our cost structure to into a durable platform for disciplined growth. That discipline protected us through the commodity pricing downturn and is what makes today's incredible price environment so meaningfully accretive with operating cash flows per barrel increasing 700% between February and March, and April commodity pricing trending even higher. As we continue in 2026 after seasonal spring break-up, our capital program is straightforward: continue executing the reactivation queue at Luseland, hold stable base production at Cuthbert and Hearts Hill, and convert every dollar of free cash flow into the next well brought online while bringing down field-operating costs.
On behalf of our entire Prospera team: thank you for your continued support, resilience and for your confidence in Prospera through every chapter of this transformation. The Company you own today is fundamentally different operationally, organizationally, and culturally, from the one that existed eighteen months ago. The work to build Western Canada's next growth-oriented junior heavy oil producer is well underway and I am confident in the path we are on, our team executing it, and the value we are building.
Sincerely,
Shubham Garg
Chairman of the Board
Prospera Energy Inc.
About Prospera
Prospera Energy Inc. is a publicly traded Canadian energy company specializing in the exploration, development, and production of crude oil and natural gas. Headquartered in Calgary, Alberta, Prospera is dedicated to optimizing recovery from legacy fields using environmentally safe and efficient reservoir development methods and production practices. The company's core properties are strategically located in Saskatchewan and Alberta, including Cuthbert, Luseland, Hearts Hill, and Brooks. Prospera Energy Inc. is listed on the TSX Venture Exchange under the symbol PEI and the U.S. OTC Market under GXRFF.
Prospera reports gross production at the first point of sale, excluding gas used in operations and volumes from partners in arrears, even if cash proceeds are received. Gross production represents Prospera's working interest before royalties, while net production reflects its working interest after royalty deductions. These definitions align with ASC 51-324 to ensure consistency and transparency in reporting.
For Further Information:
Shawn Mehler, IR
Email: investors@prosperaenergy.com
Chris Ludtke, CFO
Email: cludtke@prosperaenergy.com
Shubham Garg, Chairman of the Board
Email: sgarg@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 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295415
Source: Prospera Energy Inc.
