Prospera Energy Inc (GXRFF)

[geodan]

Have finished the Prospera video today. Not Sam's smoothest presentation but the facts were what I was after. The key thing is early on in video he points out thet can self fund the 18 wells. About $12 million from FCF and receivables and $3 million from warrant exercising.

The first 40,000 barrels per each horz wells has no royalties and after that about 2.5%, so gov is giving much better deal on horz wells, Drilling cost is $800k for horz wells and $500k for vert. He hinted that are working on deal that would double their reserves. How would they pay for that as drilling would use up all their money? By the additional production after drilling creating a lot of free cash flow, plus he expects the shareprice to go up by then and the deal is timed for when then can afford it. This is very agressive. It is fine with me.
They are projecting $5 million netback for Nov-Dec on $65 oil, I think $80 is more likely. Their FCF breakeven is 500 bopd, right now they are doing 800 bopd. End of year conservative is 1,600 bopd. Right now even with 800 bopd they have about 400 bopd behind pipe as they repair wells or optimize them. https://register.gotowebinar.com/register/6627860923139675992 has the replay