CALGARY, Alberta, Aug. 19, 2022 (GLOBE NEWSWIRE) —

Prospera Energy Inc. PEI: TSX-V; OF6A: FRA

Second


Quarter


2022


Highlights:

In the second quarter of 2022, the renewed Prospera is pleased to realize milestone positive Net Income and EBITDA in Q2 2022, supported by robust commodity pricing. PEI continued to execute the restructuring objectives of production optimization, compliance, and ARO reduction. However, breakup weather conditions mitigated the activity level in Q2. Nevertheless, PEI initiated and executed the re-entry horizontal pilots to align the upcoming significant development drilling program. During this quarter PEI effectively:

• Achieved Revenue of $4.2 million in Q2 2022 vs. $437,572 in Q2 2021
• Realized average pricing of $125.78/boe in Q2 2022 vs. $63.82/boe in Q2 2021
• Reporting positive operating netback of $1.75 million ($52.44/boe), $29.84/boe after G&A + Interest
• Achieved positive EBITDA of $901,226 in Q2 2022, and $1,088,423 YTD 2022
• Reported Cash Flow from operations of $833,761 in Q2 2022 and $308,463 YTD 2022
• Realized Net Income of $311,335 in Q2 2022 vs. a Net Loss of ($502,721) in Q2 2021
• Attained a net production rate of 368 boe/d in Q2 2022 vs. 75 boe/d in Q2 2021
• Reduced ARO obligations for 10 wells amounting to $229,902 in Q2 2022 and 17 wells amounting to $386,398 YTD 2022

Operating


Income


Summary:

Above should be read in conjunction with the Company’s financial statements and related management’s discussion and analysis for the quarter ended June 30, 2022. PEI’s Q2 2022 financial information can be found under the Company’s issuer profile on SEDAR at


www.sedar.com


.

Message


to


Shareholders

The restructured PEI is focused upon continuously improving its financial position through 2022 by executing the following financial strategies:

• Reduce historical AP liabilities by a further $3million (in addition to the $1 million YTD 2022 reduction already achieved) by using cash flow generated from operations
• Reduce decommissioning liabilities by $5million by the end of 2022 through PEI’s ongoing liability management program
• Access additional capital to fund the upcoming significant development drilling program
• Adopt a series of robust internal controls to ensure the reliability and accuracy of PEI’s financial information
• Further increasing asset value and production levels through the re-entry horizontal drilling program, well work over/recompletions, additional property acquisition; substantiated through 3
  
  ^rd
  
  party reserve valuation
  

The above financial strategies will improve the profitability of PEI while also reducing historical shareholder deficit.

About


Prospera

Prospera is a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in Western Canada. Prospera will use its experience to develop, acquire, and drill assets with potential for primary and secondary recovery.

For


Further


Information:

Shawn Mehler, PR

Email:

[email protected]


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.