Kelowna, British Columbia, Canada, November 27, 2018: ("Prospera" or the "Corporation") (PEI:TSX-V; OF6A:FRA) Prospera is pleased to announce that the ongoing strategic objective to strengthen shareholder value through continued expansion and acquisitions has resulted in significant increases in the Corporation’s overall production and revenue. The newly acquired properties in Saskatchewan and Alberta are successfully producing above management’s expectations.
Please refer to the press release dated June 13, 2018 for detailed information regarding the transaction and the agreement surrounding the acquisition of the three new properties: Cuthbert, Hearts Hill and Luseland, located approximately 160 km south of Lloydminster, Saskatchewan.
Gross revenue from June 11, 2018 to September 30, 2018 for the newly acquired oil and gas properties amounted to 87,006 BOE. Gross revenues from sales for this period were $4,726,609.
The average commodity price received was $54.32 per barrel of oil.
The assets generated a Q3 Net Operating Income after deduction of royalties and expenses of $1,102,410 for the Corporation and participating partners.
“Prospera has mitigated exposure to apportionments by implementing an oil marketing strategy through an alliance with independent, third party marketing firm, Boomerang Energy Marketing. Our crude oil is now being marketed to two alternative locations in Southern Alberta and Saskatchewan with two separate midstream providers. The alliance with Boomerang has allowed us to receive a premium on our oil sales when compared with some other E&P companies that are currently exposed to suppressed market conditions.”
Prospera will continue to aggressively develop its prolific Cuthbert, Hearts Hill and Luseland oil properties in the last quarter of 2018 and throughout 2019. The Corporation is accelerating its ongoing review of wells and further well reactivations and workovers are projected at a rate of 5-8 per month moving forward.
In the coming days, the Corporation will also be providing shareholders with an update on the operations at its other three currently producing oil and gas properties in Northern Alberta and Eastern Saskatchewan, as this information becomes available. Detailed information summarizing all Prospera’s operations will be forthcoming in the completed Q3 financial reports and accompanying MD&A to be issued later this week.
Prospera’s interim audit of its Q3 - 2018 financial statements is not yet complete, and accordingly all financial amounts referred to in this news release are unaudited and represent management's estimates. Readers are advised that these financial estimates are subject to audit and may be subject to change as a result.
Prospera Inc is a Canadian natural resource Corporation engaged in the acquisition, exploration, development and production of oil and gas properties with operations in Alberta and Western Saskatchewan.
For further information:
President and Chief Executive Officer
Production volumes are commonly expressed on a barrel of oil equivalent ("BOE") basis whereby natural gas volumes are converted at a ratio of six thousand cubic feet to one barrel of oil. The intention is to convert oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants. The term BOE may be misleading, particularly if used in isolation. The conversion ratio is based on an energy equivalent method and does not represent an economic value equivalency at the wellhead.
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. More particularly, it contains forward-looking statements concerning: (i) production (ii) planned drilling, reactivation, development and waterflood activities, (iii) the potential number of drilling locations at certain of the Transactions properties, (iv) timing and completion of the Transaction, including expectations and assumptions concerning timing of receipt of required regulatory approvals and the satisfaction of other conditions to the completion of the Transaction, and (v) potential development opportunities associated with the Transaction.
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 Inc. 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.
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