Prospera Energy Announces Operations and Financing Update

Executive Summary

• Prospera Energy reports continued success of its Luseland well‑reactivation program, highlighting multiple reactivated wells delivering strong oil production and low water/sand cuts.
• The company amends its previously announced non‑brokered unit offering: $3 M CAD at $0.035 per unit, with warrants now exercisable at $0.05 for three years; closing extended to March 15 2026.
• Prospera will settle $79,533 of trade payables by issuing ~1.59 M common shares at a deemed price of $0.05 per share.

Key Details

• Luseland Well Performance – Highlights for six wells:
• 10‑07: Consistent output over seven months; further optimization expected.
• 10‑08: Incremental RPM increases raised oil production while cutting water.
• 01‑17: Very low water cut, high netbacks; positioned on updip erosional edge of Section 17.
• 16‑07: Reactivated after >20 years shut‑in; now a meaningful contributor with >10 JOF remaining for optimization.
• 03‑09: Re‑activated and optimized via recycle pump; 5 RPM increase in Jan, additional adjustments planned; ~2 % sand cut maintained.

• 07‑33: Recovery factor <3 % pre‑reactivation; systematic enhancements (pump speed, chemicals, superflushes) have lifted sand cuts up to 8 %; ongoing JOF increases to boost oil rates.

• Equity Offering (Unit Offering) – Updated terms:

• Units: 1 common share + 1 warrant per unit.
• Issue price: $0.035 per Unit.
• Total amount: CAD 3,000,000.
• Warrant exercise price: $0.050 per share; exercisable for three years from issuance (extended by one year).
• Closing date: On or before March 15 2026 (extended).
• Use of proceeds: Well reactivations, production optimization, working capital, balance‑sheet strengthening.

• Finder’s fees: Up to 3 % cash and 3 % warrants payable to qualified finders.

• Shares for Debt Settlement – Agreements with twelve vendors:

• Outstanding payables settled: $79,532.98.
• Shares issued: 1,590,660 common shares at a deemed price of $0.050 per share.

• Trading restriction: Shares locked for four months and one day from issuance; subject to TSXV acceptance.

• Monthly Conference Call – Next call scheduled for Wednesday, February 18, 2026 at 10 AM MST; audio hosted on X Spaces with recording available thereafter.

Notable Quotes

(No direct quotes were provided in the release.)