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Prospera Energy Inc V.PEI

Alternate Symbol(s):  GXRFF

Prospera Energy Inc. is a Canada-based energy company. The Company specializes in the exploration, development, and production of crude oil and natural gas. Its core properties include Cuthbert, Luseland and Heart Hills in Saskatchewan; and Red Earth and Pouce Coupe in Alberta. Its Phase II restructured development program intends to increase production. The Phase II development entails the drilling of 10 horizontal wells in heavy oil and 8 slanted wells in medium-light oil to accelerate growth and capture the remaining reserves (400 million bbls). It also seeks to reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path.


TSXV:PEI - Post by User

Post by graffiti99on Sep 28, 2023 12:22pm
215 Views
Post# 35659617

Not sure I like the decision to borrow, nor to acquire

Not sure I like the decision to borrow, nor to acquireI'm not sure I like the decision to borrow and to get on the acquisition hampster wheel. Acquiring properties? not sure about that, Prospera should focus on shareholder return. Doesn't Prospera have plenty of reserves, there is no need to add on more? I would prefer Samuel just stay within our means, execute the drilling program, focus on overcoming manageable legacy challenges, the oil will come on line and the free cash flow will lift the stock price. To me it's discipline, work within what the cashflows give you, ues debt sparingly, return to shareholders.  A lot of oil patch companies borrow to much, buy mediocre oil fields at the wrong time and blow it.

On the other hand, it's not that big a loan, if the proceeds go to short term drilling and the outcome is basically known, then OK. 

FYI - I'm long Prospera, but I view it as somewhat risky, so it's in my TFSA and margin accounts, not by retirement funds.

Good luck to all. Likely a multi-bagger here


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