Prospera Energy Inc. Announces Milestone Q2 2022 Revenue (Increase of 860% over Q2 2021)
August 19 2022 - 12:45AM
Prospera Energy Inc. PEI: TSX-V; OF6A: FRA
Second Quarter
2022 Highlights:
In the second quarter of 2022, the renewed
Prospera is pleased to realize milestone positive Net Income and
EBITDA in Q2 2022, supported by robust commodity pricing. PEI
continued to execute the restructuring objectives of production
optimization, compliance, and ARO reduction. However, breakup
weather conditions mitigated the activity level in Q2.
Nevertheless, PEI initiated and executed the re-entry horizontal
pilots to align the upcoming significant development drilling
program. During this quarter PEI effectively:
- Achieved Revenue of $4.2 million in
Q2 2022 vs. $437,572 in Q2 2021
- Realized average pricing of $125.78/boe
in Q2 2022 vs. $63.82/boe in Q2 2021
- Reporting positive operating netback
of $1.75 million ($52.44/boe), $29.84/boe after G&A +
Interest
- Achieved positive EBITDA of $901,226 in
Q2 2022, and $1,088,423 YTD 2022
- Reported Cash Flow from operations
of $833,761 in Q2 2022 and $308,463 YTD 2022
- Realized Net Income of $311,335 in
Q2 2022 vs. a Net Loss of ($502,721) in Q2 2021
- Attained a net production rate of 368
boe/d in Q2 2022 vs. 75 boe/d in Q2 2021
- Reduced ARO obligations for 10 wells
amounting to $229,902 in Q2 2022 and 17 wells amounting to $386,398
YTD 2022
Operating Income
Summary:
|
Q2 2022 |
|
Q2 2021 |
|
Increase
(Decrease)Value % |
Average sales
volumes: |
|
|
|
|
Natural gas (Mcf/d) |
46 |
|
13 |
|
33 |
|
252 |
% |
Oil and condensate (Bbl/d) |
360 |
|
73 |
|
287 |
|
393 |
% |
Total Net (Boe/d) |
368 |
|
75 |
|
293 |
|
390 |
% |
Liquids Composition (percentage) |
98 |
% |
97 |
% |
1 |
% |
1 |
% |
Average realized
prices |
|
|
|
|
Natural gas ($/Mcf) |
6.48 |
|
2.92 |
|
4 |
|
122 |
% |
Oil ($/Bbl) |
127.53 |
|
65.15 |
|
62 |
|
96 |
% |
Average realized price ($/Boe) |
125.69 |
|
63.82 |
|
62 |
|
97 |
% |
Operating netback |
|
|
|
|
Natural gas |
26,975 |
|
3,349 |
|
23,626 |
|
705 |
% |
Oil |
4,177,440 |
|
434,223 |
|
3,743,217 |
|
862 |
% |
Total petroleum and natural gas sales |
4,204,416 |
|
437,572 |
|
3,766,844 |
|
861 |
% |
Royalties |
(695,104 |
) |
(66,784 |
) |
(628,320 |
) |
941 |
% |
Operating costs |
(1,758,049 |
) |
(357,368 |
) |
(1,400,681 |
) |
392 |
% |
Operating netback |
1,751,262 |
|
13,420 |
|
1,737,842 |
|
12950 |
% |
Above should be read in conjunction with the
Company’s financial statements and related management’s discussion
and analysis for the quarter ended June 30, 2022. PEI’s Q2 2022
financial information can be found under the Company’s issuer
profile on SEDAR at www.sedar.com.
Message to
Shareholders
The restructured PEI is focused upon continuously improving its
financial position through 2022 by executing the following
financial strategies:
- Reduce historical AP liabilities by
a further $3million (in addition to the $1 million YTD 2022
reduction already achieved) by using cash flow generated from
operations
- Reduce decommissioning liabilities by
$5million by the end of 2022 through PEI’s ongoing liability
management program
- Access additional capital to fund
the upcoming significant development drilling program
- Adopt a series of robust internal
controls to ensure the reliability and accuracy of PEI’s financial
information
- Further
increasing asset value and production levels through the re-entry
horizontal drilling program, well work over/recompletions,
additional property acquisition; substantiated through 3rd party
reserve valuation
The above financial strategies will improve the
profitability of PEI while also reducing historical shareholder
deficit.
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: shawn@prosperaenergy.com Website:
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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