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Growth-Oriented Small Cap Oil Stock Begins 18 Well Drill Program -- Prospera Energy · Financial Survival Network

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  The horizontal wells are basically development, so you're probably talking about an eighteen to
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  ninety percent CHATS success. The expectation is that we're going to have soloware get
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  dwing six studio undered barrels a day for well that includes the risk of the
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  ninety percent chats a success. We've included the geology, We've included the Seisnick
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  and we picked locations right next to our tested oil to find the best locations
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  duel so they have sixty seventy percent chats of each adding unored barrels a d
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  The Financial Survival Network now more than ever, the Financial Survival Network, and
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  welcome. This is Financial Survival Network. I'm your host, Kerry Lutz,
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  and we are going to get an update from one of my largest holdings,
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  Prosperity Energy. We're going to find out about the upcoming drill programming, what
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  else is ahead. Samuel David CEO, George mcgarian, VP of Subsurface are
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  here with me. Sam glad you're back. So rough winter up your way,
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  rough winter for for Prospera with the weather and production issues. The winters
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  are always harsh and Saskatchwan and especially in the latter part of quarter too,
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  on most part of quarter one. Those four months we have scheduled all our
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  Phase two development in the summer months. We've been steadily working towards to have
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  the rig on site to drill, and then the rig is also scheduled for
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  the first first few weeks of August, both for the horizontals and the verticals
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  for the light oil as well. That's ten horizontals, eight verdicals. Just
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  as we planned these summer months, we've invaded a survey, acquiring the leases,
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  constructing and getting license and permits to construct. So every this week progressing,
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  we have obtained the well license and then wee scheduled as well, and
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  all those services are coordinated. Just to give you an example, a horizontal
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  takes about one hundred different types of services utilized and working consortium to do these
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  kind of horizontal wealths. We are drilling it to depleted reservoirs, so we
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  have to be very careful on also circulation. So all of those technical challenges
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  we have piloted, and we have addressed the technical risks and the economic side
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  of it as well in coordinating the services and getting the terms, party terms
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  and all those kind of things. The team has made steadily working and we're
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  ready to go August first week after the long weekend, because hey, if
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  you drill in the long weekend, it's double over time. Okay, so
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  we're doing right after the long weekend, okay. And currently production, what
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  are we looking at. We're looking at about a thousand boies, but we
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  still have about thirty thirty two fifty cubes on just engines and rods and flushed
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  by those kind of things, and those are being coordinated so that that additional
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  three hundred EOIs will be added here in the betch few weeks. And as
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  far as production come the end of the year, weather permitting, what do
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  you think will be at well, We have taken the weather into consideration in
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  our forecast, initial forecasts, and that hasn't changed. George, it's great
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  to have you on, great to meet you. Understand, you've got banks
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  and you've got thirty six years of petroleum geology under your belt. A lot
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  of the fields you've developed during this time tell us eighteen Walsh, that's doable
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  for the time period allotted. Yeah, no, no problem. I mean
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  that the horizontal wells probably take about a week to drill. That's ten weeks
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  of drilling. He wanted to add out, you know, one back to
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  back to back the vertical wells, he shouldn't. Shouldn't take that long mail
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  build babe, or five days those can be again, uh, drills back
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  to back to back, and you know that within a month you could have
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  most of the wells drilled. We have everything ready to build, all at
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  the same time. So yeah, the timeline is not an issue from it
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  from the drilling perspecting all right, and in your experience, and like we
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  said, you've got vast experience. What is the pro prospectivity of those wells?
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  Look like the horizontal wells are basically development, so you're probably talking about
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  an eighteen to ninety percent chants of success. The expectation is that we're going
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  to have soloware got Dwayne sixty to hundred barrels a day er well that includes
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  the risk of lead to ninety percent chants of success. They're going to bring
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  on some bit production with a high chance of success. Now. But yeah,
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  the other wells of the verticals, I wouldn't call them development. Maybe
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  would call them outposts. I don't know if that's the term that the investors
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  would know about, but basically what you're saying with an outposts that you're drilling
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  right next to an established well. We included the geology, we've included the
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  seize nick and we picked locations right next to our tested oil to find the
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  best locations can drill so that they have sixty seventy percent chants each adding huttered
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  darrels a day, so we could see quite a bit more and Sam.
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  As far as bringing those wells into production, are there any particular challenges there?
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  What's the time frame once the wheel is drilled, assuming it's successful,
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  but just prior to that, those that seismic that George referred to, those
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  are all three D seismic. We have three D size both both areas,
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  and these locations were picked with three D size and well control and it's very
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  similar to the Actually, George was pretty excited that these ones that we're going
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  to drill looked a little bit better than the wells that we proved, so
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  we're excited about that. Now, for the horizontals, we're drilling from existing
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  least ten meters away from my existing well, so it's a matter of tying
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  into existing facility, so the horizontal wells will come out a lot quicker within
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  a few weeks of drilling, and we'll do the completion with the landing the
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  pump at the same time. We'll tie it in and it's all pipeline to
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  the facilities. So the horizontal production, we can see it quite rapidly.
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  The medium light oil, it's a new development area, so we have to
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  acquire new lease, and we'll also have to construct some of the things that
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  are associated with the new lease. We have to bring a new equipment,
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  and we have sourced all of that out the technical tea, the facility pipeline
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  teams, as all the plants we're proceeding with that that'll take a little a
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  little bit more time, probably another than a half because all those permits we
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  have been working on it since the sun started. So if I were bold
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  to say by a quarter three, we shouldn't have all of them all.
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  Conceivably all eighteen wales could be online by a quarter three, which is quite
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  an accomplishment. There seems to be confusion as to when the drill program was
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  going to start. I knew there are, Like you said, there's hundreds
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  of moving parts to a program under way. So if you're a few weeks
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  early or a few weeks late. It's not significant in so far as the
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  weather goes, and still getting the program done, is it. We were
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  planning for July August, drill in late July, in mid August, so
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  maybe there was a confusion, uh that it could be that instantly. There
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  is a lot of have you I moving especially for a small company for us,
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  this is a big program as far as we're consacked, were we're opped
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  argot and all our teams would working hard quickly, But there's always permits and
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  weather and all that. But I'd say we're opped argot. Yes. As
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  far as finances go and the cash flow, um I noticed, well,
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  last year obviously had record cash flow from operations. It was up multiples of
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  where it was before. And latest release indicates that you have more than enough
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  cash on him to finance the program. Well, you never have more than
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  more that we did. You know in quarter one, as you recall,
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  the winter was pretty harsh, so you know the production was down. There
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  was also the commodity press that has been honest, it is getting a little
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  better in the last few weeks we noticed, but nevertheless, we're set to
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  drill and finance these projects, especially with the exercise of the warrants and sustained
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  cash flow as well. All right, and George, So as far as
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  the composition of the oil you were you said there's medium and light to present,
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  which was a surprise. Well, the medium light is in the the
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  Alberta Fairway. Uh, we're we're pursuing the Hammy is obviously a Saskatchewan outset.
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  The medium light will will darner a better price than the heavy that we're
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  producing in Saskatchewan. Also, the medium light oil is uh, it's radical
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  weals, ariz optal whatsoever, our directional wealths, so they will be drilled
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  quicker than ariz optical weals as well. So it'll be able to bring those
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  medium light oil radical or slanted wells a little bit quicker and cheaper as well
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  in terms of capital outlay. We've talked before that the company is actively seeking
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  acquisition. Sam, Can you just I realize there's a limit to how much
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  information you can give us on that. Can you give us the broad outline
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  of where you're at in that process acquas you shouldn't. We plan and the
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  core area to expand in the core area is still in progress. It is
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  back at forth and in terms of discarding the exact pool that we want.
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  And you know, the talk is still there and we're proceeding towards the pools
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  that we walked, not just all the liabilities surrounding it, you know,
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  which is when we wanted to get at. But that conversation is in progress,
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  all right. I realized that there's a limit to what you can tell
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  us about it. But it's good to know that it's still alive and you're
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  moving ahead. And so is there anything else? What about the polymer flooding
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  in the upgrading? Anything good? It's there a good question. We're moving
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  towards a pilot, we're getting ready for application as well. That work for
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  spament steadily progress as well, and we also have chosen the type of polymer
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  that we need as well, and so we've been we're going with vendors at
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  moving towards the application and a pilot as we plat right. And what about
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  the other the new technology that actually takes heavy oil and turns it into better
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  than WTI I hope, so that is also proceeding as well, where you
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  have moped into the experimental stage of that. News is going to be coming
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  out to the next week or so where we're supplying our samples and the experiment
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  it's going to commence and we should be receiving an idle report of the experiment
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  at the end of the year. All right. So there's a lot happening.
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  And like anything else there in the normal ebb and flow of the companies,
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  there's active periods and there's not so active periods. Sometimes there's a lot
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  of action taking place under the surface and you don't see it, which obviously
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  is what's been happening here with Prospera. So look, go over to prosperit
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  Energy dot com. Sign up for notifications so you'll get these news releases as
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  they come. The ticker symbols in the US g x r f F.
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  In Canada, of course, it's Pei, Sam, George. Thanks for
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  coming on and we will be following up with you in the months ahead.
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  Thank you. Carry yeah, i'd like to see that, okay, thank
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  you. The Financial Survival Network