Prospera Energy Inc. announces 98% increase in current assets in Q1 2023 financial results
31 Mai 2023 - 8:00AM
Prospera Energy Inc. ("
Prospera" or the
"
Corporation") (PEI: TSX-V; OF6B: FRA)
Prospera announces its first quarter 2023
financial and operating results. Selected financial and operational
information outlined below should be read in conjunction with the
Company’s financial statements and related management’s discussion
and analysis (MD&A) for the quarter ended March 31, 2023.
Prospera is pleased to announce increased
working capital by $7,788,265 from various sources of funding as
follows:
- Warrants exercised provided
$4,459,265 to PEI without affecting fully diluted shares.
- Principle investor extended matured
convertible debt of $1,500,000 by two years to 2025 to allow for
PEI capital development without affecting working capital.
- 8% debt with equity bonus added
$2,015,000 resulting in only 0.3% dilution to fully diluted
shares.
- Equity private placement
contributed $1,314,000 resulting in 6.7% dilution to fully diluted
shares.
- Improved working capital increased
the Q1 2023 current assets by 98% to $4,740,967 from $2,399,097 (Q4
2022).
PEI Q1 2023 revenue was affected by reduced
commodity pricing, widened heavy oil differentials and winter
affected lower production resulting in $1,562,012 net revenue
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 resurrected
production levels to approximately 800 boe/d with an additional 200
boe/d being reinstated. Subsequently, Prospera’s robust capital
development program is expected to commence at the end of Q2. This
program consisting of 8 medium oil vertical wells and 10
medium-heavy horizontal wells is predicted to contribute an
additional 1,000 bpd.
-
Low global commodity prices in Q1 2023 reduced PEI’s sales price to
$58.87/boe vs. $81.07/boe in Q1 2022. Currently, these oil prices
have recovered to $70/boe and Prospera anticipates stable or
strengthening sales prices for the remainder of the year.
Operating Netback |
Q1 2023 |
|
Q1 2022 |
|
Total petroleum and natural gas sales |
1,562,012 |
|
3,463,047 |
|
Transportation Costs |
(180,449 |
) |
(94,953 |
) |
Royalties |
(188,727 |
) |
(391,498 |
) |
Operating & restructuring costs |
(1,742,455 |
) |
(1,899,856 |
) |
Operating netback |
(549,618 |
) |
1,076,740 |
|
Dollar per BOE |
Q1 2023 |
|
Q1 2022 |
|
Sales |
58.87 |
|
81.07 |
|
Transportation Costs |
(6.80 |
) |
(2.22 |
) |
Royalties |
(7.11 |
) |
(9.16 |
) |
Operating cost |
(65.67 |
) |
(44.48 |
) |
Operating netback |
(20.72 |
) |
25.21 |
|
Restructured Prospera is positioned for 2023
record growth after 2022 transformational year of production,
revenue, and profitability.
ASSETS |
|
March 31, 2023 |
|
December 31, 2022 |
Current
assets |
|
|
|
|
Cash |
$ |
2,754,075 |
$ |
1,050,960 |
Trade and other
receivables |
|
1,463,281 |
|
838,500 |
Prepaid expenses and
deposits |
|
73,762 |
|
59,788 |
Inventory |
|
449,849 |
|
449,849 |
Total current assets |
|
4,740,967 |
|
2,399,097 |
Non-current assets |
|
|
|
|
Trade and other
receivables |
|
3,195,935 |
|
2,844,129 |
Deposits |
|
874,706 |
|
918,902 |
Property and equipment |
|
28,616,943 |
|
28,984,586 |
Right-of-use |
|
622,407 |
|
661,941 |
Total assets |
$ |
38,050,959 |
$ |
35,808,655 |
Restructured Prospera continues to increase its
asset value by executing its development program to capture the
significant remaining reserves.
PEI has submitted its quarter-end financial
information for 2023, within the Company's issuer profile on SEDAR
at www.sedar.com.
2023 Outlook
PEI restructured efforts have resulted in
manageable liabilities, safe operating infrastructure and optimized
critical production rates up to gross 1,000 boepd from vertical
wells. In 2023, PEI has positioned itself to execute the second
phase of PEI development plan that is to increase production
through medium-oil development in Alberta and medium-heavy-oil
horizontal wells and capture the significant remaining reserves in
Saskatchewan. While abandoning vertical wells and reducing the
environmental footprint and ARO obligations.
About Prospera
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.
For further information:
Shawn Mehler, PREmail:
smehler@prosperaenergy.comWebsite: www.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 the 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.
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