Prospera Announces Completion of Key Pipeline Projects and Readiness for Winter Capital Program

Executive Summary

• Prospera Energy completed three major pipeline infrastructure projects in its Cuthbert and Hearts Hill fields, bringing multiple injector and producer wells back into service.
• The company is advancing a 2025/2026 winter capital program that includes reactivating 42 wells, packer repairs, and workovers to drive near‑term production growth and cash flow.
• Prospera’s previously announced CAD 4 million convertible debenture offering remains on track for closing on or before December 14 2025; proceeds will fund well reactivation, production optimization, strategic acquisitions, and working capital.

Key Details

• Pipeline Upgrades:
• Two replacement/integrity‑upgrade pipelines in Cuthbert and one pipeline replacement in Hearts Hill reached mechanical completion and are now in service.

• Upgrades enabled the return of several injector wells to operation and staged bring‑online of producer wells, enhancing fluid management and operational reliability.

• Winter Capital Program (2025/2026):

• Plan includes reactivation and optimization of 42 wells across core assets, targeted reactivations in Luseland, scheduled workovers in Hearts Hill, packer repairs, and restart of suspended wells in Cuthbert.

• Expected to contribute meaningfully to near‑term production growth and strengthen cash flow.

• Regulatory Compliance:

• Completed remediation of 311 regulatory non‑compliances over the past twelve months, underscoring commitment to responsible development and operational discipline.

• Convertible Debenture Offering (CAD 4 M):

• Term: 3 years
• Interest: 12% per annum, calculated quarterly, payable at maturity or conversion date (cash or shares).
• Conversion Price: $0.05 if converted within the first year; $0.10 in years two or three.
• Units on Conversion: One common share + one warrant to purchase an additional common share at $0.05 (exercisable for three years from closing).
• Force‑Conversion Trigger: Share price ≥ $0.125 for ten consecutive days.
• Security: Unsecured, non‑brokered private placement.
• Finders’ Fees: Up to 7% cash and 7% warrants payable to qualified finders.

• Target Close Date: On or before 2025‑12‑14.

• Use of Proceeds:

• Well reactivation, production optimization, strategic acquisitions, and working capital for the winter capital program.

Notable Quotes

“Completion of these pipeline upgrades marks a pivotal and transformational step forward for Prospera,” said Shubham Garg, CEO. “With these projects now in service, we are able to advance our winter capital program and bring additional production online with greater consistency and efficiency backed by reliable cash flow from our low‑decline production base.”

All boilerplate, forward‑looking statements, and company background have been omitted for brevity.