06:51 AM EDT, 04/01/2025 (MT Newswires) -- Prospera Energy ( GXRFF ) , trading at 52-week lows, overnight Monday said production averaged 773 boe/d (93% oil) from March 1 to March 28, with production peaking on March 27at 881 boe/d (93% oil), despite continued winter conditions.

In a statement it said: "Following the pipeline cutout failure analysis and third-party engineering review that was completed in February, conclusions from these evaluations have been incorporated into Prospera's field-wide development strategy, as well as its abandonment, reclamation, and turnaround initiatives. This has led to temporary suspension of an injection line in Cuthbert in preparation for injection line replacements after spring break-up, which impacted production by near 105 barrels/day for the entirety of March. It is worth noting that these production numbers do not include the recent acquisition of White Tundra Petroleum."

PEI noted WCS differentials are trading in record-low territory with certain summer months at less than $10 USD/bbl. It also noted with Prospera's production base consisting of primarily heavy oil, this additional revenue and cash flow adds to the corporation's ability to maximize netback and reallocate capital into further projects.

The company said it completed its Hearts Hill workover program with 16 wells completed and now online, achieving capital efficiency of less than $5,000 per boe/d. It noted production continues rising consistently with March 27 at 241 boe/d (88% oil) and oil cuts improving after load fluid recovery and with speedups. The company said it will monitor these wells and overall pool waterflood performance over spring break-up after which the next phase of workovers will be planned. Additionally, a pipeline upgrade project is underway which will open access to two further water injectors, adding 250 m3/d of injection capacity and further optimizing the waterflood.

The company said its high-impact Luseland workover program is also complete, with nine out of 11 completed wells now online. It noted these wells were previously inactive due to lower commodity prices, lack of operational focus, limited capital availability by past operators, and outdated heavy oil downhole technology, which has since seen a step change during this timeframe and can now be leveraged by Prospera. PEI said all nine wells have started producing oil with four wells now producing at close to 100% oil cut displaying exceptional reservoir performance and aiding in bringing sand up the wellbore which further increases near-wellbore permeability. The remaining two wells are under surface equipment build and tie-in, and are expected to be online by April. Furthermore, PEI added, bringing these wells online converts wells previously labeled as NRA (No-reserves associated) with only ARO (Asset Retirements Obligations) associated with them, into active producing wells with significant PDP reserves and cash flow associated.

In Brooks, the company said it has further accelerated well production by increasing fluid level drawdown, implementing casing gas compression to alleviate pressure on the reservoir, and enhanced wax and scale mitigation strategies. It added these efforts have led to increased production, with additional optimization capacity available on these fronts. "Preparatory work in Brooks is ongoing, including evaluations of acid fracs versus cross-linked gel fracs and the most effective matrix stimulation techniques for the Pekisko wells. AFE's have been finalized for various projects and are ready to be capitalized as part of the company's development plans."

Prospera said it continues to make "meaningful progress" in addressing regulatory non-compliances. AER non-compliances have been fully addressed-down 100% from 16 to zero. MER non-compliances have also decreased significantly in Q1, dropping 37% with further major progress expected in Q2. It said these improvements reflect continued commitment to responsible and compliant resource development.

Given the scope of activity performed in Q1 and expected go-forward production increase activities, Prospera has committed to quarterly reserve report updates which grow both the company's net asset value and lending capacity. These will be released along with the company's quarterly results.

PEI has also further strengthened its business structure, with a governance committee formed at the board level and a disclosure committee at the employee level.