Prospera Energy Inc. reorganizes to strengthen its balance sheet

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CALGARY, AB / ACCESSWIRE / October 25, 2021 / Prospera Energy Inc. (TSXV: PEI) (FRA: OF6A):

This press release contains certain updates and forward-looking statements.

Towards the end of 2020, Prospera Energy Inc. (“PEI” or the “Company”) found itself in a difficult position. It had become extremely difficult to continue operations due to high and long liabilities. These circumstances were further amplified by the pandemic and the drastic reduction in volumes produced.

In December 2020, Mr. Samuel David was appointed President and CEO and member of the PEI Board of Directors. Mr. David’s goal was to avoid receivership and reorganize the Company to strengthen the balance sheet and position Prince Edward Island to move forward.

The restructuring coordinated by Mr. David was designed to enable Prince Edward Island to achieve efficiencies and profitability, through safe operations, while respecting the environment and regulations. This plan included:

  • Structuring of a private placement financing of shares and convertible debentures which raised CA $ 5.6. This product has been used to settle secured creditors, settle unsecured creditors through a combination of monthly payments and an equity debt settlement proposal, meet environmental and regulatory compliance and working capital for initiate production optimization.

  • Restructure the board of directors with diversified commercial and technical experience and form an experienced management team, focused on technical delineation to optimize recovery costs in an efficient and safe manner.

  • Aspire to give a positive perception to the oil and gas industry by eliminating all emissions, minimizing environmental disruption and conducting environmentally friendly operations.

PEI’s reorganization efforts resulted in a reduction in liabilities and an appreciation in production. The financial statements for the third quarter of 2021 will reflect these efforts. Prince Edward Island looks forward to continuing communication as the Society moves forward under new leadership.

About Prospera

Prospera is a public oil and gas exploration, development and development company focused on conventional oil and gas reservoirs in Western Canada. Prospera will use its experience to develop, acquire and drill assets with primary and secondary recovery potential.

For more information:

Sandra Lee-Chong, Corporate Liaison
Phone. : (403) 454-9010
email: [email protected]
Website: www.prosperaenergy.com

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements relating to the Company’s future operations and other statements which are not historical facts. Forward-looking statements are often identified by words such as “will”, “may”, “should”, “anticipate”, “expect” and similar expressions. All statements other than statements of historical fact included in this press release, including, without limitation, statements regarding the plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and that actual results and future events could differ materially from those anticipated in such statements.

Although Prospera believes that the expectations and assumptions on which forward-looking statements are based are reasonable, forward-looking statements should not be relied upon because Prospera cannot guarantee that they will prove to be correct. Because forward-looking statements deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently expected due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general (e.g. reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and risks to health, safety and the environment), fluctuations in commodity prices and exchange rates and uncertainties resulting from delays or potential changes in plans for exploration or development projects or expenditures in capital.

The reader is cautioned that the assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those expected, due to many known and unknown risks, uncertainties and other factors, many of which are beyond the control of Prospera. Accordingly, Prospera cannot guarantee that a forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on forward-looking information. This information, although considered reasonable by management at the time of its preparation, 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 assumes 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 law.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of TSXV) accepts responsibility for the adequacy or accuracy of this release.

THE SOURCE: Énergie Prospera inc.

See the source version on accesswire.com:
https://www.accesswire.com/669408/Prospera-Energy-Inc-Reorganizes-to-Strengthen-the-Balance-Sheet


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