CALGARY, Alberta, July 12, 2022 (GLOBE NEWSWIRE) — Prospera Energy Inc. (”

Prospera

” or the ”

Corporation

“) (PEI: TSX-V; OF6B: FRA) is pleased to release its fourth quarter and year-end 2021 financial and operating results. Selected financial and operational information outlined below should be read in conjunction with the Company’s financial statements and related management’s discussion and analysis for the year ended December 31, 2021.

Message to Shareholders

2021 was a transformational year for Prospera as the Corporation was restructured to be compliant, and profitable for all stakeholders. Restructuring of Prospera commenced in Q2 2021 with the initial focus on AP arrears, regulatory & environmental non-compliances, safe infrastructure operations, and production optimization. Importantly, PEI has placed additional focus on ensuring its accounting practices are compliant with IFRS standards and is committed to improving the legacy culture associated with Prospera’s accounting policies.

Prospera’s commitment to accounting commenced with hiring new auditor Crowe MacKay LLP (“Crowe”), announced on December 3, 2021. Crowe completed an extensive audit into current and prior periods. Also, conducted a higher count of sample testing, resulting in numerous prior period adjustments. Further, identifying significant internal controls to be implemented. Overall, the audit took longer than expected, however restructured PEI has established much higher confidence in its financial accounting practices and compliance

The 2021 audited financials captured the significant reorganization and business efforts achieved resulting in the current financial position and liquidity. PEI is positioned for accelerated growth in 2022 and years onward (upon a strong Foundational business support pillar).

2021 Highlights

A. Realized positive net earnings of $4.3 million in 2021 ($0.05 per share – basic) compared to a net loss of $11.7 million in 2020 (-$0.18 per share – basic)

• Impairment reversal of $6,849,087 is a result of reserves volume increase from 464Mbbl to 2,644Mbbl; Increased NPV@10% increase from -$3.4 million to +$56.2 million. The oil in place was technically justified by the restructured team substantiated by third party evaluation. The NPV increase was completed at modest $70/BOE CAD price deck.

• The restructuring cost of infrastructure and well optimization resulting in a higher operating cost. However, production to the current 700 barrels (gross) of oil equivalent (BOE) per day resulting in significantly increased monthly revenue, from a low of 80 BOE per day in March 2021
• Realized average oil and natural gas prices of $61.42 per barrel of oil equivalent (boe) in 2021 compared to $33.76 per boe in 2020

B. PEI increased its asset value considerably by 368%+ in the 2021:

• The substantiation of oil in place and corresponding increase in NPV value were key contributors to the increase in asset value.
• Increased the Corporation’s ownership in the Cuthbert, Luseland, and Heart Hills properties from an average of 40% to 80%+ by settling partner arrears.

C.


PEI reduced legacy arrears significantly in Year 2021

• Settled $1,575,000 of mezzanine debt
• Settled legacy debt and trade arrears of $5.8 million
• Reduced AP liabilities year over year by $2,261,842 (based on 2020 closing balances)

D. Increase in production and asset value improved the Shareholder deficiency in Year 2021

• Net income driving reduction in shareholder deficiency of 4,349,802
• Issued convertible debt through multiple private placements, raising a net total of $6,469,410; raised equity proceeds of $902,000.

PEI’s 2021 year-end financial information is under the Company’s issuer profile on SEDAR at

www.sedar.com

.

2022 Outlook

PEI restructured efforts have resulted in manageable liabilities, safe operating infrastructure and optimized critical production rates of 700BOE per day from vertical wells. PEI has positioned itself to execute the second phase of the PEI development plan that is to increase production through horizontal wells and to capture the significant remaining reserves. While abandoning vertical wells and reducing the environmental footprint and ARO obligations. PEI has initiated the test horizontals to evaluate technical and economical merits.

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.