Prospera Energy, a publicly traded energy company based in Western Canada, specializing in the exploration, development, and production of crude oil and natural gas is has announced a 17% working interest (WI) increase in its core heavy oil assets. As part of this strategic initiative, Prospera Energy has executed agreements with two joint venture partners. Restructured Prospera has elevated its ownership from an average of 35% WI to the current average 95% WI.
Acquisition of 7% Working Interest:
Prospera Energy has acquired an additional 7% working interest in the Hearts Hill, Luseland, and Cuthbert properties from a joint venture partner. In exchange, Prospera Energy has agreed to forgive all outstanding debts totaling $1,233,000 owed by the partner, and a 100% working interest on the non-core Red Earth property, including all associated liabilities.
Acquisition of 10% Working Interest:
Additionally, Prospera Energy has finalized the acquisition of a 10% working interest in the Cuthbert, Luseland, and Hearts Hill assets from another joint venture partner. The total purchase price for this transaction is $600,000 CAD, consisting of $400,000 in cash to be paid over 16 months and $200,000 in equity through the issuance of 3,076,923 PEI.V common shares at a price of $0.065 per share. These shares will be subject to a six-month hold period and TSX approval. Furthermore, 3,076,923 warrants will be issued, allowing the holder to acquire one PEI.V common share at a price of $0.10 in the first year and $0.15 in the second year until expiry, also subject to TSX approval. As part of this agreement, Prospera Energy has agreed to forgive all outstanding debts totaling $215,628 owed by the joint venture partner.
Now, Prospera has 100% ownership of the Luseland asset that has largest oil reserve of an estimated 280 million barrels of Original Oil in Place (OOIP). Additionally, Prospera has gained 100% ownership of the Hearts Hill property, which contains the highest API oil (17API) among the three heavy-oil assets and holds upside potential in the Sparky formation. In Cuthbert working interest has increased from 69% to 86%. Both Hearts Hill and Cuthbert assets have full infrastructure in place with facilities that can handle 75,000-barrels of emulsion each. This acquisition significantly enhances Prospera’s control over its most substantial resource, enabling optimized development and management of these reserves.
Subsequent to current medium-oil development, Prospera transitioned to the Hearts Hill Bakken horizontal drilling program. The Sparky Waterflood pilot has been initiated, including recompletions and conversions. Multi-lateral pilot horizontals at Luseland are scheduled to begin after the Hearts Hill horizontals. Improved recovery pilot has been also initiated.
As part of White Tundra Investments' business development initiatives supporting Prospera, assistance including working interest valuation analysis, deal structure strategy, and acting as liaison between the company and JV partners was provided. White Tundra continues to support Prospera through a variety of initiatives and was not paid any fees in this transaction.
These strategic acquisitions further strengthen Prospera Energy’s position in its core properties, aligning with the company’s ongoing commitment to maximizing shareholder value through targeted growth and asset optimization.
Source: Prospera Energy Via GlobeNewswire
