- Prospera Energy recently announced that its sixth horizontal well has commenced drilling
- The well forms part of the company’s phase 2 initiatives, which will see it drill a total of ten horizontal and 8 vertical wells across its Cuthbert and Heart Hill properties
- Recent successes within the program – has seen drilling work and production profiles come in well ahead of expectations – this has prompted Prospera to extend its second phase beyond the initially planned ten horizontal wells
- The company separately revealed that it has reached a production of 1,100 boe/d from its five initial wells as of end October, not including a further 700 boe/d of production currently shut-in to facilitate ongoing developmental work
Prospera Energy (TSX.V: PEI) (OTC: GXRFF) (FRA: OF6B), a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in Western Canada, provided investors and stakeholders with some positive news in recent days (https://ibn.fm/vWRmk). The company announced that its sixth horizontal well had successfully commenced production as of early November, only weeks after announcing the resumption of its horizontal infill drilling program. Prospera have recently launched the second phase of its drilling program, centered around drilling 10 horizontal well locations across its Cuthbert and Hearty Hill properties, with the eventual goal of tripling the company’s daily crude output in 2023.
The company revealed that the initial batch of 5 horizontal wells it had drilled had outperformed its estimated production curve, with the wells’ IP60 (i.e., average daily rate of production after a cumulative 60 days of production) outperforming Prospera Energy’s initial forecasts. With five horizontal wells now in production – and a sixth having recently joined their ranks, albeit not accounted for in the production total – Prospera has seen its gross production swell to 1,100 barrels of oil per day (boe/d). That figure fails to account for 400 boe/d currently halted to accommodate ongoing well development efforts as well as a further 300 boe/d paused to facilitate minor repairs and optimization efforts within the piping network.
With Prospera Energy’s second phase running well ahead of schedule, as well as in an effort to take advantage of currently elevated Western Canadian Select crude prices per barrel, the oil & gas developer have announced plans to extend their initial ten well program, with the development of its light oil slanted wells now set to extended well into the coming year.
Prospera Energy will finance its ongoing activities through its recent debt capital raise, a non-brokered private placement of debt financing which has sought to raise up to $3 million. Proceeds from the financing activity will go towards both, ongoing drilling work as well as to accommodate the company’s joint venture partner deficit; with Prospera’s joint venture partners currently experiencing difficulties, Prospera has assumed total ownership over the project’s costs and foreseeable revenues until the ongoing situation is remedied.
Prospera’s business model has been centered on optimizing hydrocarbon recovery from legacy oilfields using innovative production practices, a production method which has enabled Prospera to both, optimize recovery costs – with less need to carry out exploration and initial drill work – and benefit from modern crude extraction technologies. Similarly, it has allowed the company to bypass issues afflicting peers operating within the realm of the Canadian oil sands space, wherein companies have had to contend with the twin headwinds posed by elevated extraction costs and environmental impact.
With ongoing OPEC-led production cuts, geopolitical concerns, and a potential economic recovery within China likely to maintain crude prices elevated as we go into 2024, Prospera Energy’s rapidly improving crude production profile promises to hold it in good stead going forward.
For more information, visit the company’s website at www.ProsperaEnergy.com.
NOTE TO INVESTORS: The latest news and updates relating to GXRFF are available in the company’s newsroom at https://ibn.fm/GXRFF