Prospera Energy Inc.
PEI: TSX-V; OF6B: FRA, OTC:
GXRFF
Prospera Energy Inc. (PEI) December 31, 2022
year-end reserves were independently assessed by InSite Petroleum
Consultants Ltd. (“InSite”). The Insite report confirmed current
recovery to date of 8.6% using mostly vertical wells, mainly in
core assets (>42,000 acres) located in Southwest and
West-Central Saskatchewan, with significant remaining recoverable
reserves representing a substantial upside for PEI. Further, there
were no modern drilling or recovery methods applied to these
fields.
Therefore, the restructured PEI recommended
transition from vertical to horizontal wells to capture significant
remaining reserves, while eliminating vertical wells along the path
of the lateral resulting in reducing surface / environmental
footprint and associated costs and liability. In 2022, two
horizontal re-entry pilot wells were drilled to assess the
technical and economic merits to substantiate a full scale
development program. The pilots revealed that converting from
re-entry to conventional horizontal would allow for better control
of the well. Especially, in these depleted reservoirs where there
is higher chance of encountering loss of circulation. Also, gentler
build enables optimum operating conditions for pump landing. Based
on the these pilots, a 10 horizontal well development program has
been initiated by PEI for 2023. The PEI pilots enabled reserves
booking of 100 Mbbl TPP reserves per horizontal well, additional
PUD locations with total proved (TP) reserves of 1.8 MMbbl and
total proved plus probable (TPP) reserves of 2.2 MMbbl. Prospera
also exploited uphole zones in these fields with five new
recompletions accessing new reserves of 128 Mbbl and 837 MMcf TPP
reserves with significant development upside to add new production
and reserves.
More significantly, PEI production tested the
medium oil property acquired in 2022 by free flow average rate of
300 bpd at 6% watercut over 8 hours. This substantiated additional
TPP reserves of 189 Mbbl. This test along with geological and
seismic delineation have initiated a 2023 development program of
eight vertical / directional wells. These wells will access new
pool reserves and provide PEI with new incremental medium oil
production, improving corporate production and margin. A pressure
transient analysis or well test interpretation has not been carried
out. Hence, the data should be considered as preliminary until such
analysis or interpretation has been done. Furthermore, the test
results are not indicative of long-term performance or ultimate
recovery.
Prospera’s 2022 testing with pilot wells has
initiated the drilling of ten horizontals in the
core Saskatchewan assets and the 8 vertical / directional
wells in the medium oil property. Further, PEI also have planned to
pilot pressure support to improve recovery of the significant
remaining reserves.
2022 Reserve Report
Highlights:
- 53% percent
increase in TPP reserves from 2,808 to 4,306 Mboe at 95%
liquids
-
30% increase in before tax cash flow NPV@10% from $56.2 million to
$72.5 million
-
The TPP reserve life index also lengthened from 23.0 to 28.4
years
- PEI elected to
apply modest price of 79$/bbl (WCS) for the estimation of NPV,
allowing for substantial NPV appreciation if oil price
sustains
NI 51-101 Table 2.1.1
The following table discloses, in the aggregate,
the Corporation’s gross and net proved and probable reserves,
estimated using forecast prices and costs by product type.
“Forecast prices and costs” means future prices and costs in the
InSite Report that are generally accepted as being a reasonable
outlook of the future or fixed or currently determinable future
prices or costs to which the Corporation is bound.
Prospera Energy Inc.Summary of Oil and Gas Reserves as of December
31, 2022 |
Reserves Category |
Light and Medium Oil(Mbbl) |
Heavy Oil(Mbbl) |
Solution Gas(MMcf) |
Gas(MMcf) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Proved Developed Producing |
120 |
109 |
749 |
704 |
149 |
79 |
|
|
Proved Developed Non-Producing |
45 |
37 |
480 |
469 |
80 |
69 |
|
|
Proved Undeveloped |
19 |
15 |
1,768 |
1,696 |
53 |
52 |
|
|
Total Proved |
183 |
162 |
2,996 |
2,869 |
282 |
200 |
|
|
Total Probable |
156 |
128 |
766 |
679 |
107 |
82 |
837 |
736 |
Total Proved + Probable |
339 |
290 |
3,763 |
3,548 |
389 |
282 |
837 |
736 |
Gross reserves are the working interest share
only. Net reserves are the working interest gross reserves plus all
royalty interest reserves receivable less all royalty burdens
payable. Conventional natural gas (solution) includes all gas
produced in association with light, medium and heavy crude oil.
Remaining Reserves
Remaining reserves of oil and gas have been
determined as of December 31, 2022. A summary of property gross and
total company reserves follows:
Prospera Energy Inc. |
Summary of Reserves as of December 31, 2022 |
|
Proved Developed Producing |
|
Total Proved Plus Probable |
|
Oil – Mbbl |
|
|
|
|
Property Gross |
1,094 |
|
5,468 |
|
Company WI |
868 |
|
4,101 |
|
Company Net |
813 |
|
3,838 |
|
|
|
|
|
|
Gas – MMcf |
|
|
|
|
Property Gross |
190 |
|
1,546 |
|
Company WI |
149 |
|
1,227 |
|
Company Net |
79 |
|
1,018 |
|
|
|
|
|
|
BOEs – MBOE |
|
|
|
|
Property Gross |
1,126 |
|
5,725 |
|
Company WI |
893 |
|
4,306 |
|
Company Net |
826 |
|
4,007 |
|
Product Prices
The InSite base product price forecast,
effective January 1, 2023, was used for this evaluation. A copy of
which is included in the InSite Report. To estimate actual received
prices, adjustments were made to crude oil and by-products prices
for quality and transportation tariffs. Similarly, adjustments were
made to gas prices for heating value and transportation. It is
assumed that the adjustment factors and increments will remain
constant throughout the forecasts. Revenue data provided by the
Company was used to quantify price adjustments. If such data was
unavailable, typical values for the area were used to estimate
price adjustments. Risks of political and economic uncertainties
could affect future results and could cause results to differ
materially from those expressed in this evaluation.
Economic Results
Summarized as follows is the NPV of the
Corporation’s future net revenue attributable to the reserves
categories previously tabulated, estimated using forecast prices
and costs, before deducting future income tax expenses, and without
discount and using discount rates of 5%, 10%, 15% and 20%. Future
net revenue includes all resource income and is after capital
investments, operating expenses, and royalties.
Prospera Energy Inc. |
NPV of Future Net Revenue as of December 31, 2022 |
NPV before Income Taxes (M$C) |
|
|
Proved DevelopedProducing |
|
Total Proved |
|
Proved Plus Probable |
|
Undiscounted |
0 |
% |
-1,892 |
|
74,172 |
|
109,965 |
|
Discounted |
5 |
% |
3,529 |
|
62,675 |
|
89,077 |
|
|
10 |
% |
4,446 |
|
51,795 |
|
72,458 |
|
|
15 |
% |
4,520 |
|
43,333 |
|
60,238 |
|
|
20 |
% |
4,416 |
|
36,845 |
|
51,131 |
|
Future operating costs are based on historical
data. Wherever unavailable, they were estimated from analogous
operations in the vicinity of the properties. The inflation of
capital and operating costs is assumed to be 2.0% per annum after
2023.
InSite has included cost estimates of well
abandonment and reclamation for all existing wells, regardless of
reserves assignment, and undeveloped locations assigned reserves.
Estimates have been prepared based on historical costs and
published guidance from provincial liability management or rating.
It is understood that all abandonment and reclamation costs of
wells and facilities have been accounted for by the Company.
After Tax Results
As mandated by NI 51-101, after tax
results are shown in the various tables of the InSite
Report. After-tax calculations at the company level
incorporated tax legislation and tax pool details for the Company,
complying with the guidelines and philosophy of NI 51-101 in all
material aspects. All future capital cost estimates herein have
been categorized by tax pool definitions and used to supplement the
year-end tax pool information provided by the Company. The year-end
tax pool, as provided by the Company, is summarized below:
- Canadian Oil and Gas Property Expense (COGPE) 7,259,636
- Canadian Development Expense (CDE) 3,434,117
- Capital Cost Allowance (CCA Class 8,10,13,41,45) 3,156
- Non-Capital Losses (100%) 6,846,004
Qualification
To prepare their evaluation, a technical
presentation of properties was made by the Company to InSite. Data
required by them was sourced from the Company, industry references
and regulatory bodies. Neither field inspection nor environmental
review of these properties were conducted by InSite, nor deemed
necessary. Generally accepted engineering methods were employed to
estimate reserves and forecast production. The InSite Report
follows the Practice Standards and Guidelines of the Association of
Professional Engineers and Geoscientists of Alberta (APEGA) and
adheres in all material aspects to the business practices,
evaluation procedures, and reserve definitions contained within NI
51-101 and the COGEH Handbook.
PEI’s 2022 year-end reserves information is
under the Company’s issuer profile on SEDAR at www.sedar.com.
For further information:
Samuel David, President, CEOTel: (403) 454-9010Email:
admin@prosperaenergy.comWebsite: 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. Estimated values
disclosed do not represent fair market value. 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.
Prospera Energy (TSXV:PEI)
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부터 4월(4) 2024 으로 5월(5) 2024
Prospera Energy (TSXV:PEI)
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