Prospera closes White Tundra Petroleum acquisition

Executive Summary

• Prospera Energy Inc. announced the closing of its acquisition of White Tundra Petroleum (WTP) for total consideration of $2.62 million, involving cash and share issuance, with a potential performance-based bonus.
• The company provided a detailed operations update for August 1–21, reporting an average gross production of 775 boe/d (97% oil), excluding the newly acquired WTP assets.
• A new joint venture partnership was signed to advance development of Mannville stack formation assets, with the partner earning a 50% working interest in test wells upon meeting capital commitments.

Key Details

• Production Metrics (Aug 1–21):
  • Average gross production: 775 boe/d (97% oil).
  • Excludes production from the recently acquired White Tundra assets.
  • Four additional wells brought online in the past seven days; two single-well battery (SWB) builds in progress.
• White Tundra Petroleum Acquisition:
  • Status: Successfully closed; acquired 100% of issued and outstanding common shares.
  • Assets: Located near Loyalist and Hanna, Alta., producing 30-degree API medium oil.
  • Total Consideration: $2.62 million.
  • Payment Structure:
    • $720,000 satisfied via issuance of 18 million common shares at a deemed price of $0.04/share.
    • Potential performance-based bonus of up to $292,500 (7,312,500 shares at $0.04/share).
  • Bonus Condition: Contingent on acquired assets achieving average production of at least 128 boe/d for seven consecutive days within six months of closing.
  • Related Party Transaction: Shubham Garg (Chairman/CEO of Prospera) is CEO and shareholder of WTP; he recused himself from board discussions.
• Joint Venture Partnership (Mannville Stack):
  • Objective: Advance development of Mannville stack formation assets.
  • Timeline:
    • Identify three non-producing test wells by Aug 31, 2025.
    • Operations commence by Oct 31, 2025.
    • Completions targeted for Jan 31, 2026.
  • Terms: Partner may earn a 50% working interest in test wells upon meeting capital commitments. Partner holds a five-year option to nominate further wells. Prospera retains operatorship and well licensing.
• Field-Specific Operations:
  • Cuthbert: Avg production 295 boe/d (100% oil). Remediation on 16-28 HZ well (bridge plug) and 08-02 HZ well (bridge plug + 35m heel perf) completed. Oil production on 08-02 HZ increased by >300%. 18 additional similar opportunities identified.
  • Hearts Hill: Avg production 202 boe/d (90% oil). Waterflood pattern optimization and fluid level drawdown initiatives advanced. Injection patterns adjusted, reversing well declines.
  • Luseland: Avg production 217 boe/d (99% oil). 34 wells on line. Focus on well-by-well optimization, sand slugging management, and recycle pump installations. Strategy transforming No Reserves Associated (NRA) wells into Proved Developed Producing (PDP) assets.
• Future Plans:
  • Q4 service rig program finalized, including 12 additional Luseland reactivations.
  • Monthly reporting of production volumes and corporate revenue to continue.
  • Workover tracker to include capital spend information in the September iteration.

Notable Quotes

• No direct quotes from the CEO/President were included in the provided text.