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Prospera Energy Inc. V.PEI

Alternate Symbol(s):  GXRFF

Prospera Energy Inc. is an energy company based in Western Canada, specializing in the exploration, development, and production of crude oil and natural gas. The Company is primarily focused on optimizing hydrocarbon recovery from legacy fields through environmentally safe and efficient reservoir development methods and production practices. It has 100% ownership of the Luseland asset, which has oil reserve of an estimated 280 million barrels of Original Oil in Place (OOIP). Additionally, the Company has gained 100% ownership of the Hearts Hill property, which contains the highest API oil (17API) among the three heavy-oil assets and holds upside potential in the Sparky formation. In Cuthbert, it has a working interest of approximately 86%. Both Hearts Hill and Cuthbert assets have full infrastructure in place with facilities that can handle approximately 75,000-barrels of emulsion each. The Company's Pouce Coupe property is located in Alberta.


TSXV:PEI - Post by User

Comment by TheCardinalon Jun 01, 2023 2:42pm
151 Views
Post# 35475431

RE:Please assist with these due diligence questions

RE:Please assist with these due diligence questionsThe Company makes itself open and eager to questions such as yours.   They have a telephone number and a designated IR person who publishes his direct e-mail address at the bottom of every News Release. 

graffiti99 wrote:
I have a few questions and concerns for the group. I'm interested, but need to play devils advocate before I put my hard earned money to work here. 
 
Here goes:
 
(1) Share dilution: In the corporate presentation PEI balance sheet proforma, we have Actual 2022 Stockholders equity of 16,262,329. Then, in Forecast 2023 we have Stockholders Equity of 27,135,160.  What is the explanation for this? 
 
(2) Previous mess: What is the status of the old ownership group's broken dreams? Since it was in bankruptcy it seems to me there is a risk for old claims and litigation that come out of the woodwork? thoughts?
 
(3) Horizontal drilling is too easy: To suggest that in the 80's they only did vertical, but now we can simply do horizontal drilling and capture decades of continuous, low decline, low cost oil seems too good to be true. It would have been done by now. Why didn't the old group do this? Horizontal drilling has been around for a while.
 
(4) Dollar per BOE: Q1 2023 says operating netback is -$20.72. Total cost per BOE is $79.58. So they need $80 oil or they start burning through cash.
 
Hey, don't get me wrong - I'm interested. I've seen the youtube videos, it's an interesting story.  Just trying to identify the risks before I put my money in.
 
Thanks all and good luck if you are already a shareholder!


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