Prospera Energy Inc. reports Q2 results 2019

Prospera Energy Inc. (TSXV:PEI)(FRA:OF6A) (“Prospera”, the “Corporation”) is pleased to announce its financial and operating results for the six months ended June 30, 2019. The condensed interim financial statements, and related management’s discussion and analysis (“MD&A”) will be available at www.sedar.comand www.prosperaenergy.com.

OPERATION AND FINANCIAL SUMMARY

The Corporation’s oil and gas revenues have experienced significant growth due to changes in production volumes and the acquisition of additional working interest in producing properties located in southwest Saskatchewan and eastern Alberta (the “Assets”).

RESULTS OF OPERATIONS

SECOND QUARTER 2019 HIGHLIGHTS

Oil sales increased by $1,622,830 (or 254%) over Q2 2018 due to higher sales volumes ($1,631,617), offset in part by lower realized pricing ($8,787). Natural gas sales decreased by $566 due to lower sales volumes ($7,021), offset by higher realized pricing ($6,455). Production increased over the respective period pursuant to the 35 percent net working interest acquisition in producing properties located in the Southwest Saskatchewan area during calendar year 2018 and the second quarter 2019 incremental 15 percent net working interest acquisition from a joint venture partner in the southwest Saskatchewan Hearts Hills and Luseland properties.

Net Profit for the period was $466,189 compared to $262,433 in Q1 of 2019

Operating costs were higher in the second quarter of 2019 as compared to the second quarter of 2018 on the increased production and increased workover and facility maintenance projects.

As at June 30, 2019, total net debt of $3,888,228 remained on the Corporation’s credit facilities, representing a reduction of $1,026,897 since Dec 31, 2018.

On May 21, 2019, the Corporation completed an acquisition of an additional 15 percent net working interest from a joint venture partner in the southwest Saskatchewan Hearts Hills and Luseland properties. The purchase price was satisfied by a reduction of the vendors’ arrears for operational costs of $500,000 and $50,000 cash advanced by an Insider of the Corporation. Refer to note 7 of the Interim Financial Statements. During the three months ended June 30, 2019, the Corporation disposed certain non-core assets and related liabilities for cash proceeds of $315,322 million (net of customary adjustments) resulting in a gain on disposal of $236,511. The assets consist of the Corporation’s interests within the Silverdale Cash Generating Units (“CGU”). Refer to note 8 of the Interim Financial Statements. The proceeds were used to repay amounts borrowed under Prospera’s Credit Facility

2019 OUTLOOK AND GUIDANCE

The Corporation’s strategy to re-invest revenues into the further acquisition, development and expansion of its assets has been successful to date and will continue throughout 2019. Reactivations and workovers are currently taking place at a rate of 8-10 per month and will continue at this rate throughout 2019. With overall gross production now over 1000 boe/d, Prospera remains focused on responsibly increasing efficiency, expanding our inventory of high-quality drilling locations and managing our capital spending while striving to enhance our per share production, reserves and cash flow.

Prospera reaffirms its full-year 2019 guidance and is continuing all efforts to enhance the Corporation’s financial flexibility through future growth opportunities both organically, as well as through further acquisition and strategic alliances.

ABOUT PROSPERA ENERGY INC.

Prospera Energy Inc is a Canadian natural resource Corporation engaged in the acquisition, exploration, development and production of oil and gas properties with operations in Alberta and western Saskatchewan