Prospera Energy Inc. announced a medium light oil +500 barrels per day flowing well from a full day of production testing. This above gradient pressure reservoir will typically flow for a few months and will transition into an artificial lift system production of approximately +150 bblspd of stabilized rate. A second well is also to come online within the next few days expecting similar production rates.

Prospera will continue the medium light oil drilling development to increase production and diversify the heavy-light oil product mix to increase shareholder value. Prospera is also delighted to announce the heavy oil drilling success of attaining lateral pay greater than 500 meters (m) that has realized initial production rates higher than 100+ bblspd. The second group of horizontal transformation wells drilled has attained consistently +500m of lateral pay and the most recent (the 8th horizontal well) has attained +700m of lateral pay.

The 9th well is expected to commence in the next few days. Pleasantly, based on the drilling and optimization success PEI has achieved a high daily gross production rate of 1,577 BOEPD. As a result, Prospera is expected to exceed the year-end exit target of 1,800 BOEPD.

These successful developments translate to significant additional reserve and appreciation of PEI net present value (NPV). Prospera?s Joint Venture partners are in receivable and therefore in default position until remedied. Consequently, Prospera assumes 100% of the cash received from the partner?s share of oil sales.

Prospera Energy will continue the phase 2 development transformation to optimize recovery from the significant remaining reserves and achieve operational excellence to become a low-cost producer. In 2024, PEI plans to further enhance recovery through (EOR) Enhanced Oil Recovery methods and add to existing production levels through strategic acquisitions to expand the core reserve base and to diversify the product mix. The restructured Prospera remains steadfast in its commitment to eliminating the legacy arrears to landowners, regulators, and the local community.

Prospera is sincerely thankful to all stakeholders for their cooperation and collaboration for PEI?s continued growth.