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Prospera Energy Inc. Announces 98% Increase in Current Assets in Q1 2023 Financial Results


Prospera Energy Inc. (GXRFF), PEI:CA, has announced its financial and operating results for the first quarter of 2023. The company reports a significant increase in working capital by $7,788,265 from various funding sources. This positive development will support Prospera's capital development and has led to a 98% increase in current assets in Q1 2023, totaling $4,740,967.


Increase in Working Capital:

Prospera is pleased to announce that working capital has increased by $7,788,265, sourced from various funding sources, including:

- Exercise of warrants provided $4,459,265 to PEI without affecting fully diluted shares.

- The principal investor extended matured convertible debt of $1,500,000 by two years until 2025, allowing for PEI's capital development without affecting working capital.

- An 8% debt with equity bonus added $2,015,000, resulting in only 0.3% dilution to fully diluted shares.

- An equity private placement contributed $1,314,000, resulting in 6.7% dilution to fully diluted shares.


Financial Results and Operational Information:

PEI's Q1 2023 revenue was impacted by reduced commodity pricing, widened heavy oil differentials, and lower production due to winter conditions, resulting in net revenue of $1,562,012 compared to $3,444,996 in Q1 2022. Extreme cold weather and heavy snowfall curtailed net sales to 295 boe/d (363 gross) in Q1 2023. Currently, PEI has restored production levels to approximately 800 boe/d, with an additional 200 boe/d being reinstated. Prospera's robust capital development program, consisting of 8 medium oil vertical wells and 10 medium-heavy horizontal wells, is expected to commence at the end of Q2 and contribute an additional 1,000 bpd.


Outlook for 2023:

Prospera continues to increase its asset value by executing its development program and capturing the significant remaining reserves. The company has positioned itself for record growth in 2023 after a transformational year in 2022 in terms of production, revenue, and profitability. With manageable liabilities, a safe operating infrastructure, and optimized production rates, Prospera is ready to execute the second phase of its development plan. This includes increasing production through medium-oil development in Alberta, medium-heavy-oil horizontal wells, and capturing the remaining significant reserves in Saskatchewan while abandoning vertical wells to reduce environmental footprint and abandonment and reclamation obligations.


Conclusion:

Prospera Energy Inc. made significant progress in Q1 2023, with a strong increase in current assets and improved working capital. With diverse funding sources and a solid capital development program, Prospera is well-positioned for growth and success in 2023. The company's focus on increasing production and capturing reserves demonstrates its commitment to maximizing asset value and promoting sustainable oil and gas extraction in Western Canada.

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