(TSX.V: PEI, OTC: GXRFF, FRA: OF6B, OF6B.SG, OF6B.F, OF6B.BE).
GORR Financing
The Company signed an arms-length Purchase and Sale, Overriding Royalty Agreement and Agreement to Purchase Royalty, all dated
$1,000,000 upon closing;$1,000,000 to be paid within 10 days;$1,000,000 to be paid within 10 days from the first date of production of wells #8 and #9 in PEI’s drilling program located in Cuthbert,Saskatchewan .
The Company has the right of first refusal to repurchase the royalty back for
The initial royalty rate of 1% up to and including
As a part of White Tundra's business development initiatives supporting Prospera,
Debt Financing
Additionally,
The debt financing with an equity bonus was previously announced in press releases dated
Debt Term Sheet
Issue: | Low-dilutive offering (the "Offering") of debt financing with equity bonus. |
Equity Bonus: | Principal amount loaned will be granted an equity bonus. 1 share for every |
Interest: | 14% interest, calculated and paid quarterly in cash starting after the 3rd quarter (interest in the first quarter is compounded). |
Term: | 2 years. |
Repayment: | Principle repaid at the end of the term. |
Underlying Equity Bonus: | Common shares of the Company listed on the |
Use of Proceeds: | Prospera intends to use the net proceeds of the Offering for development capital (covering default partner portion) – drilling, completion & tie-in, well abandonment & reclamation costs, and ongoing ESG initiatives. |
Finders Fees: | The Corporation may pay qualified finders a fee of 7% cash and 7% warrants. |
Insider
The Corporation paid finders fees to qualified finders totaling
Strengthen Leadership Team
Additionally,
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 remaining reserves (400 million bbls). These horizontal laterals 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. Further, Prospera will pursue its acquisition strategy to diversify its product mix. 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: shawn@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 the 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.
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