Prospera Provides Major Operational Update and Strengthens Financial Position to Accelerate Heavy Oil Growth

Prospera Energy Inc. has announced a comprehensive operational update alongside the successful completion of a $3.0 million non-brokered equity financing. This milestone marks a critical step in advancing the company’s core heavy oil strategy, improving production stability, strengthening its balance sheet, and positioning the organization for sustainable long-term growth in Canada’s energy sector.

This update reflects Prospera’s disciplined approach to capital allocation, operational optimization, and asset development. By focusing on low-decline, high-impact heavy oil assets, the company aims to generate consistent cash flow while enhancing shareholder value in a volatile commodity environment.

Strategic Vision and Corporate Direction

Prospera’s overarching strategy centers on developing and optimizing heavy oil assets with long-life reserves and predictable production profiles. Management continues to prioritize operational efficiency, cost control, and responsible development while maintaining flexibility to adapt to market conditions.

The company’s leadership believes that heavy oil remains a resilient segment of the energy market, particularly when supported by disciplined capital deployment and modern production techniques. This philosophy underpins Prospera’s operational decisions and financing initiatives.

Overview of the $3.0 Million Non-Brokered Equity Financing

The recently completed non-brokered equity financing raised gross proceeds of approximately $3.0 million. The funds are intended to support near-term operational initiatives, optimize existing assets, reduce liabilities, and provide general working capital.

This financing was structured to align with Prospera’s long-term objectives while minimizing dilution and maintaining balance sheet strength. Management emphasized that securing capital in the current market environment reflects investor confidence in the company’s strategy and asset base.

Use of Proceeds

The net proceeds from the financing will be allocated across several key priorities:

• Enhancement of heavy oil production through targeted workovers and reactivations
• Reduction of high-interest liabilities to improve financial flexibility
• Maintenance capital expenditures to sustain production levels
• General corporate and working capital purposes

By deploying capital in these areas, Prospera aims to improve operational reliability while laying the groundwork for future growth initiatives.

Operational Update: Core Heavy Oil Assets

Prospera’s operational update highlights progress across its core heavy oil properties. The company has focused on stabilizing base production, reducing downtime, and implementing cost-effective improvements designed to enhance overall field performance.

Management reported that operational teams have made meaningful strides in addressing legacy challenges, including infrastructure reliability and well performance variability. These improvements are expected to translate into more predictable production and cash flow.

Production Optimization Initiatives

Key production optimization efforts include:

• Well reactivations targeting previously shut-in production
• Workover programs designed to restore and enhance well productivity
• Improved artificial lift performance to reduce operating costs
• Enhanced field surveillance and data-driven decision-making

These initiatives reflect Prospera’s commitment to extracting maximum value from existing assets before pursuing higher-risk development opportunities.

Cost Management and Operational Efficiency

Cost discipline remains a cornerstone of Prospera’s operational philosophy. The company has implemented several measures aimed at reducing operating expenses while maintaining safety and environmental standards.

Through vendor renegotiations, operational streamlining, and improved maintenance practices, Prospera has achieved measurable reductions in per-barrel operating costs. Management believes these efficiencies will become increasingly important as the company scales production.

Infrastructure Reliability Improvements

Investments in infrastructure reliability have been prioritized to minimize unplanned downtime. By addressing bottlenecks and upgrading key components, Prospera expects to see improved uptime and lower long-term maintenance costs.

These improvements not only support current production but also enhance the economic viability of future development phases.

Balance Sheet Strengthening and Financial Discipline

The completion of the equity financing supports Prospera’s broader goal of strengthening its balance sheet. Reducing debt and improving liquidity are essential components of the company’s risk management framework.

Management emphasized that maintaining financial discipline allows Prospera to navigate commodity price cycles more effectively while preserving optionality for growth investments.

Debt Reduction and Liability Management

A portion of the financing proceeds is expected to be directed toward reducing higher-cost liabilities. This approach is intended to lower interest expenses and improve cash flow resilience.

By proactively managing its liabilities, Prospera aims to create a more sustainable capital structure aligned with its production profile.

Market Environment and Heavy Oil Outlook

The heavy oil market continues to present both challenges and opportunities. While price volatility remains a factor, demand for heavy oil blends has shown resilience, particularly in regions with established refining capacity.

Prospera’s management team believes that disciplined operators with low-cost assets are well positioned to benefit from market recovery and longer-term demand trends.

Risk Management and Commodity Price Exposure

Prospera employs prudent risk management practices to mitigate exposure to commodity price fluctuations. These include flexible capital programs, ongoing cost control, and selective hedging strategies when appropriate.

Such measures help stabilize cash flows and support operational continuity during periods of market uncertainty.

Environmental Responsibility and Regulatory Compliance

Environmental stewardship remains a key priority for Prospera. The company is committed to operating in compliance with all applicable regulations while minimizing its environmental footprint.

Operational practices emphasize responsible resource development, spill prevention, and effective site reclamation. Prospera continues to work closely with regulators and local stakeholders to ensure transparent and responsible operations.

Health, Safety, and Environment (HSE) Focus

Prospera’s HSE programs are designed to protect employees, contractors, and the communities in which it operates. Ongoing training, monitoring, and continuous improvement initiatives support a strong safety culture across the organization.

Growth Opportunities and Future Development Plans

Looking ahead, Prospera sees multiple opportunities to build on its stabilized production base. Management intends to pursue incremental development projects that offer attractive risk-adjusted returns.

These opportunities may include additional well reactivations, targeted drilling programs, and further infrastructure enhancements as market conditions permit.

Capital Allocation Framework

Prospera’s capital allocation framework prioritizes projects that deliver near-term cash flow and rapid payback. This disciplined approach helps ensure that growth initiatives enhance shareholder value without overextending the company’s resources.

Management Commentary and Strategic Confidence

Prospera’s leadership expressed confidence in the company’s strategic direction and operational momentum. The successful financing and operational improvements underscore management’s commitment to executing its heavy oil strategy effectively.

Management noted that aligning capital, operations, and strategy is essential to navigating the evolving energy landscape and delivering sustainable results.

Investor Perspective and Shareholder Value

From an investor perspective, Prospera’s update provides greater transparency into operational progress and financial positioning. The company’s focus on low-risk optimization and balance sheet strength is designed to support long-term value creation.

Management remains committed to open communication with shareholders and to delivering results that reflect prudent stewardship of capital.

Conclusion: A Stronger Foundation for Sustainable Growth

Prospera’s comprehensive operations update and $3.0 million non-brokered equity financing represent a meaningful step forward in advancing its core heavy oil strategy. By stabilizing production, improving efficiency, and strengthening its financial position, the company has established a solid foundation for sustainable growth.

As Prospera continues to execute its strategy, management believes the company is well positioned to capitalize on opportunities within the heavy oil sector while managing risks responsibly. This balanced approach underscores Prospera’s commitment to long-term success for its stakeholders.

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