PEI’s
The 2023 Reserves Report demonstrates substantial upside for PEI, with highlights as follows:
- PDP reserves increased 508% from 4.4MM$ to 27.1MM$ at a discount rate of 10%.
- 2P reserves increased by 60.8MM$ from 72.5MM$ to 133.3MM$ at a discount rate of 10%.
- Total proved and probable reserves value increased by 25% from 4,306 to 5,403 Mboe (97% liquids).
- The reserve life index increased by 6% from 28 to 30 years.
- PEI elected to apply modest price of 79$/bbl (WCS) for NPV estimation, allowing for substantial NPV appreciation if oil price sustains.
- 2024 TPP F&D costs of
$5.7 /boe (4.3x recycle ratio). - Net asset value per share:
- TP of
$0.21 &TPP of$0.31
- TP of
NI 51-101 Table 2.1.1
The following table discloses, in the aggregate, the Corporation’s gross and net proved and probable reserves estimated using forecast prices and costs by product type. “Forecast prices and costs” means future prices and costs in the InSite Report that are generally accepted as being a reasonable outlook of the future or fixed or currently determinable future ,prices or costs to which the Corporation is bound.
Summary of Oil and Gas Reserves as of | ||||||||
Reserves Category | Light and Medium Oil (Mbbl) | Heavy Oil (Mbbl) | (MMcf) | Gas (MMcf) | ||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | |
Proved Developed Producing | 232 | 200 | 1,044 | 994 | 50 | 19 | 70 | 65 |
Proved Developed Non-Producing | 23 | 20 | 305 | 301 | 25 | 19 | 58 | 54 |
Proved Undeveloped | 99 | 80 | 1,934 | 1,855 | 32 | 32 | ||
Total Proved | 354 | 300 | 3,283 | 3,149 | 106 | 69 | 128 | 119 |
Total Probable | 266 | 218 | 1,364 | 1,231 | 30 | 20 | 555 | 498 |
Total Proved + Probable | 620 | 518 | 4,647 | 4,380 | 136 | 89 | 683 | 617 |
Gross reserves are the working interest share only. Net reserves are the working interest gross reserves plus all royalty interest reserves receivable less all royalty burdens payable. Conventional natural gas (solution) includes all gas produced in association with light, medium and heavy crude oil.
Remaining Reserves
Remaining reserves of oil and gas have been determined as of
Summary of Reserves as of | ||||
Proved Developed Producing | Total Proved Plus Probable | |||
Oil – Mbbl | ||||
Property Gross | 1,748 | 7,311 | ||
Company WI | 1,276 | 5,267 | ||
Company Net | 1,194 | 4,898 | ||
Gas – MMcf | ||||
Property Gross | 145 | 987 | ||
Company WI | 120 | 819 | ||
Company Net | 84 | 706 | ||
BOEs – MBOE | ||||
Property Gross | 1,772 | 7,476 | ||
Company WI | 1,296 | 5,403 | ||
Company Net | 1,208 | 5,015 |
Product Prices
The
Economic Results
Summarized as follows is the NPV of the Corporation’s future net revenue attributable to the reserves categories previously tabulated, estimated using forecast prices and costs, before deducting future income tax expenses, and without discount and using discount rates of 5%, 10%, 15% and 20%. Future net revenue includes all resource income and is after capital investments, operating expenses, and royalties.
NPV of Future Net Revenue as of NPV before Income Taxes (M$C) | ||||||||
Proved Developed Producing | Total Proved | Proved Plus Probable | ||||||
Undiscounted | 0 | % | 30,905 | 131,261 | 209,549 | |||
Discounted | 5 | % | 29,857 | 108,092 | 164,900 | |||
10 | % | 27,051 | 89,920 | 133,312 | ||||
15 | % | 24,407 | 76,147 | 110,652 | ||||
20 | % | 22,196 | 65,581 | 93,893 |
Future operating costs are based on historical data. Wherever unavailable, they were estimated from analogous operations in the vicinity of the properties. The inflation of capital and operating costs is assumed to be 2.0% per annum after 2024.
After Tax Results
As mandated by NI 51-101, after tax results are shown in the various tables of the InSite Report. After-tax calculations at the company level incorporated tax legislation and tax pool details for the Company, complying with the guidelines and philosophy of NI 51-101 in all material aspects. All future capital cost estimates herein have been categorized by tax pool definitions and used to supplement the year-end tax pool information provided by the Company. The year-end tax pool, as provided by the Company, is summarized below:
- Canadian Oil and Gas Property Expense (COGPE)
$11,902,793 - Canadian Development Expense (CDE)
$19,743,881 - Capital Cost Allowance (CCA Class 8,10,13,41,45)
$2,274 . - Non-Capital Losses (100%)
$8,846,004
Qualification
To prepare their evaluation, a technical presentation of properties was made by the Company to
Production & Development
As per the Corporate Production Diagram (above) Prospera attained peaks rates of approximately 1,800 boepd in late
The success from PEI’s 2023 drilling program supports the 2024 robust development plan to drill vertical / directional / horizontal wells in the medium oil property and horizontals in the core
About Prospera
The company is in the midst of a three-stage restructuring process aimed at prioritizing cost effective operations while appreciating production capacity and reducing liabilities. Prospera has completed the first phase by optimizing low hanging opportunities, attaining free cash flow, while bringing operation to safe operating condition, all while remaining compliant. Currently, Prospera is executing phase II of the restructuring process, the horizontal transformation intended to accelerate growth and capture the significant oil in place (400 million bbls). These horizontal wells allow PEI to reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path. Phase III of Prospera’s corporate redevelopment strategy is to optimize recovery through EOR applications. Furthermore, Prospera will pursue its acquisition strategy to diversify its product mix and expand its core area. Its goal is to attain 50% light oil, 40% heavy oil and 10% gas.
PEI continues to apply efforts to minimize its environmental footprint. Also, efforts to reduce and eventually eliminate emissions, alongside pursuing innovative ESG methods to enhance API quality, thereby achieving higher margins and eliminating the need for diluents.
For Further Information:
Shawn Mehler, PR
Email: investors@prosperaenergy.com
Website: www.prosperaenergy.com
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “anticipate,” “expects” and similar expressions. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Although Prospera believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Prospera can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Prospera. As a result, Prospera cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward- looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Prospera does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/1f5bbad9-207d-4acf-ba37-888fb01c7b1e
https://www.globenewswire.com/NewsRoom/AttachmentNg/f70f9e28-3e34-45bc-83f0-e2780a4ccbfe
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