Calgary, Alberta–(Newsfile Corp. – May 1, 2026) – Dear Prospera Shareholders, the last eighteen months have been the most consequential in Prospera Energy’s history. Since the management and Board restructuring on October 31, 2024, we have spent every day building the operational, strategic and cultural foundation of a disciplined heavy oil company designed to increase shareholder value for years to come. This letter is a report on that work and why I believe Prospera is well placed to continue implementing the strategy we have so tirelessly developed.
Eighteen months ago, our new management team acquired a company with promising assets that have significant latent value waiting to be developed. We acted decisively and without delay. We streamlined staff, transformed operations, curated business plans from the ground up and made the strategic decision to rebuild Prospera based on a new and reliable business strategy focused on low-risk, capital-efficient reactivations. All of this happened in a WTI price environment of $60-70 in 2025, which left no room for error.
We completed 64 revisions and returned 21 wells to service through reactivations. At Luseland, production increased from 54 BOE/d to 258 BOE/d, an increase of 378% in eighteen months, driven entirely by reactivations, optimizations and proactive management. There are more than 400 million barrels of original oil lying beneath us, with current recovery factors in much of the pool being just 2 to 8 percent. More than 140 reactivation targets remain in our inventory, 41 of which are at Level 1. Every well we bring back online validates our thesis and generates exceptional netbacks, and every barrel we produce today pays the capital to bring online the barrels we recover through additional reactivations. These reactivations remain the highest risk-reward use of capital available to us and we will continue to use them with discipline and conviction.
The price of oil is not in our control. The cost at which we produce a barrel is. Through stricter local implementation, renegotiated service contracts and the operational discipline that now permeates every level of this company, we have transformed our cost structure into a lasting platform for disciplined growth. This discipline has protected us during the decline in commodity prices and is what makes today’s incredible pricing environment so significantly accretive to earnings, with operating cash flow per barrel increasing 700% between February and March and commodity prices trending even higher in April. As we move forward in 2026 after the seasonal spring break, our capital program is straightforward: continue to execute the reactivation queue at Luseland, keep base production stable at Cuthbert and Hearts Hill, and convert every dollar of free cash flow into the next well brought into production while reducing field operating costs.
On behalf of our entire Prospera team: Thank you for your continued support, resilience and trust in Prospera throughout every chapter of this transformation. The company you own today is fundamentally different operationally, organizationally and culturally from the company that existed 18 months ago. The work to build the next growth-oriented junior heavy oil producer in Western Canada is well underway and I am confident in the path we are taking, how our team is executing it and the value we are creating.
Sincerely,
Shubham Garg
Chairman of the Board
Prospera Energy Inc.
About Prospera
Prospera Energy Inc. is a publicly traded Canadian energy company specializing in the exploration, development and production of crude oil and natural gas. Headquartered in Calgary, Alberta, Prospera is dedicated to optimizing recovery from legacy fields using environmentally friendly and efficient reservoir development methods and production practices. The Company’s core properties are strategically located in Saskatchewan and Alberta, including Cuthbert, Luseland, Hearts Hill and Brooks. Prospera Energy Inc. is listed on the TSX Venture Exchange under the symbol PEI and on the US OTC Market under the symbol GXRFF.
Prospera reports gross production at the first point of sale, excluding gas used in operations and partner quantities in arrears, even when cash proceeds are received. Gross production represents Prospera’s share of labor before royalties, while net production reflects his share of labor after royalties. These definitions are consistent with ASC 51-324 to ensure consistency and transparency in reporting.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that relate to the Company’s future operations and other statements that are not historical facts. Forward-looking statements are often identified by words such as “will,” “could,” “should,” “anticipate,” “expects” and similar expressions. All statements contained in this press release that are not historical facts, including, but not limited to, statements regarding the Company’s future plans and objectives, 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. Because forward-looking statements address future events and conditions, they inherently involve risks and uncertainties. Actual results may 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 generally (e.g., operational risks in development, exploration and production; delays or changes in plans relating to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and forecasts relating to production, costs and expenditures, and health, safety and environmental risks), commodity price and exchange rate fluctuations, and uncertainties arising from possible delays or changes in plans relating to exploration or development projects or capital expenditures.
The reader is cautioned that the assumptions used in preparing forward-looking information may prove to be incorrect. Due to numerous known and unknown risks, uncertainties and other factors, many of which are beyond Prospera’s control, events or circumstances could cause actual results to differ materially from those projected. Therefore, Prospera cannot guarantee that any forward-looking statements will occur and the reader is cautioned not to place undue reliance on any forward-looking information. Although such information was considered reasonable by management at the time of preparation, it may prove to be incorrect and actual results may differ materially from those anticipated. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release and Prospera undertakes no obligation to publicly update or revise any forward-looking statements included, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities laws.
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.
Source: Prospera Energy Inc.