During the first six months of 2024, Prospera generated positive cash flows of $557,068 from operating activities; a vast improvement from the previous year during the same period. Typically, production rates are burdened by adverse cold weather conditions in these quarters, regardless, Prospera attained the highlights for Q2 2024:

• Reported net income of $137,933 in Q2 2024 vs. net loss of ($779,438) in Q2 2023.
• PEI realized average net sales of 696 boe/d (gross 813 boe/d) in Q2 2024, an increase of 34% from Q2 2023 net sales of 478 boe/d (gross 609 boe/d). The increase was due to additional production online from the 2023 development program.
• Due to higher production and price levels, PEI realized a 69% increase in sales revenue of $5,164,586 in Q2 2024 compared to $3,041,561 in Q2 2023.
• Consequently, the higher volumes attributed to an 11% reduction to operating expense per barrel of $32.87/boe in Q2 2024 compared to $36.89/boe in Q2 2023 (includes both operating costs and transportation expense).
• Higher volume, revenue, and lower operating costs contributed to an increase in operating netback of $1,534,079 quarter over quarter ($2,628,444 in Q2 2024; $42.87/boe vs. $1,094,365 in Q2 2023; $25.10/boe).
• As of June 30, 2024, Prospera reduced accounts payable arrears by a total of $2,659,680 from December 31, 2023.
• PEI settled JV receivables + non-core Red Earth property in exchange for an additional 7% working interest in its core Saskatchewan properties (Cuthbert, Luseland & Hearts Hill). As a result of this acquisition, Prospera's weighted average corporate working interest increased to 84%.
• Prospera entered into a loan agreement for $11million CAD in Q2 2024, which subsequently closed in July 2024. In addition, Prospera closed a $3.4million GORR financing in the same quarter. Both financings are dedicated specifically for PEI’s 2024 development program.

2024 Operations Update

Prospera is primarily focused on achieving production and cash flow stability through the optimization of its core assets, infrastructure improvements, and sound reservoir management, all aimed at capturing the significant remaining reserves and reducing its environmental footprint. Furthermore, PEI expects to leverage additional joint venture receivables to increase reported net working interest production & revenue levels.

Prospera has initiated medium-light oil development, successfully drilling three directional wells, all of which have encountered the expected structure and pay. These wells are scheduled to be brought online in the coming weeks. PEI will continue advancing the development of medium-light oil and the heavy oil transformation over the next few months. Multilateral development is also proposed for the two untapped core heavy oil properties.

KeyFacts Energy Industry Directory: Prospera Energy