We sat down with Prospera Energy’s (🇺🇸GXRFF -- 🇨🇦PEI) CEO Samuel David and VP of Subsurface -- George Magarian for an update. Prospera is one of our largest holdings. Of primary importance is the company’s 18 well drill program, consisting of 8 slanted/vertical wells and 10 horizontal wells. All the pieces are in place to commence its Phase 2 drill program, which will start by August 15 and will commence rapidly.

VP Magarian has put in over 36 years as a petroleum geologist and is an expert in Western Canada geology. He’s worked for many major producers. He has high expectations for the program. The new wells are in existing fields so risk is extremely low. He expects and 80 to 90 percent success rate. In his opinion, these wells will produce at least 60-100 barrels per day. He expects the resulting increased production in Q3. This added to August’s 1250 BOE will substantially increase production and cash flow.

For 2022 the company reported record cash flow of C$5.4 and upon completion of its Phase 2 program 2023 could go much higher. It has upped its working capital and cash position so it can easily finance increased production. The company has also been helped by $75 oil.

Finally, CEO David discussed the company’s anticipated acquisition. It is in active talks to take over an existing field and is negotiating the exact scope of acquired assets and liabilities.

Prospera expects to news flow to increase substantially as its drill program ramps up and results start coming in. We are very optimistic about its future.

Company website: https://ProsperaEnergy.com