Value Microcaps Junior Energy

[Bobwins]

Prospera Energy GXRFF/PEI.v US$.0959

Prospera Energy is a Canadian micro producing around 900boepd of heavy oil. Company has been restructuring for the past two years and recently began a 18 well drill program to increase production from around 900boepd to around 2,000boepd by 12/23.

Here is an update PR regarding the program so far:
https://www.globenewswire.com/news-release/2023/09/12/2741280/0/en/Prospera-Energy-Inc-Announces-Horizontal-Infill-Drilling-Program-Update-and-Interest-Payable-Reduction-Settlement.html

Prospera is attempting to recover from the low oil prices of several years ago. The company was heavily in debt to vendors and was a victim of the low oil prices of a couple years ago. Since it's heavy oil, they get a discounted price from WTI.

In addition to working with the vendors to get them repaid, the company has been studying how to efficiently increase production and recovery of the significant 400million barrels of heavy oil reserves. The wells the company inherited were shallow vertical wells. The company has decided to reduce their footprint by drilling horizontal wells to replace the many vertical wells. As they complete their horizontal wells, they can dismantle and abandon the vertical wells and eliminate the liability and work required to service the many vertical wells.

The severe winter last year drastically reduced production from around 1,000boepd in Q3 2022 to 250boepd in Q1 2023. This delayed their drill program but the current program should provide significant increases in production and revenues, which should allow Prospera to bring payables current and grow the company on a profitable basis.