Prospera announced that two of the five horizontal wells have commenced production over a week and have each yielded 125bpd/well with less than one percent water cut. These new horizontals were brought on strategically at a low pump efficiency of approximately thirty percent to accommodate the heavier viscous oil to achieve steady flow to peak over the next few months. These initial rates are exceeding the expectations especially at the low RPM and efficiency. The remaining three horizontal wells will commence production in the subsequent week. Currently, PEI gross production levels are 1,000+boepd with 300boepd behind pipe to accommodate development. Over the next month, Prospera is expected to attain gross production level of 1,500 boepd from behind the pipe production resumption and the additional production from the new horizontal wells. The horizontal infill drilling program will resume in the next few weeks and will continue the horizontal infill drilling transformation from vertical wells through the winter to next year break up. Prospera's quick turn-around to bring this specific horizontal production online allows Prospera to maintain momentum to capitalize on the current strong oil price environment. Furthermore, medium oil development consents are near completion to proceed to permits and to commence drilling. PEI has received a robust response to the non-brokered private placement of debt financing. A total of up to $3,000,000 will be raised offering holders' interest of 14% per annum, with interest payments to be made quarterly for a term of 2 years. In
addition to interest, holders will receive one common share for each dollar of principal advanced, at the time of investment. The Company has already received multiple-lead orders of $1,000,000 plus towards this offering. The financing is to accommodate joint venture partner deficit and to extend drilling.