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|
|Operating & restructuring costs||(1,742,455||)||(1,899,856||)|
|Dollar per BOE||Q1 2023||Q1 2022|
Restructured Prospera is positioned for 2023 record growth after 2022 transformational year of production, revenue, and profitability.
|ASSETS||March 31, 2023||December 31, 2022|
|Trade and other receivables||1,463,281||838,500|
|Prepaid expenses and deposits||73,762||59,788|
|Total current assets||4,740,967||2,399,097|
|Trade and other receivables||3,195,935||2,844,129|
|Property and equipment||28,616,943||28,984,586|
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.
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.
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.