CALGARY, Alberta – 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 $386,398 YTD 2022
Operating Income Summary:
Q2 2022 | Q2 2021 | Increase (Decrease) Value % |
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Average sales volumes: | ||||||||
Natural gas (Mcf/d) | 46 | 13 | 33 | 252 | % | |||
Oil and condensate (Bbl/d) | 360 | 73 | 287 | 393 | % | |||
Total Net (Boe/d) | 368 | 75 | 293 | 390 | % | |||
Liquids Composition (percentage) | 98 | % | 97 | % | 1 | % | 1 | % |
Average realized prices | ||||||||
Natural gas ($/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.