a Announces Ownership Increase in Core Properties and Acquires Light Oil Property


CALGARY, Alberta, July 21, 2022 (GLOBE NEWSWIRE) -- Prospera Energy Inc. ("Prospera" or the "Corporation") (PEI: TSX-V; GXRFF:OTC; OF6B:FRA) is pleased to announce its recent strategic property acquisitions to increase PEI asset value. 

Pursuant to an arms-length debt settlement agreement dated February 16, 2022, the Corporation settled debt receivable to PEI by joint venture partner Petrolia Canada Corporation of approximately $1,700,000 by the acquisition of an undivided 13.423% working interest in the Cuthbert, Luseland and Hearts Hill properties located in Saskatchewan and Alberta (the Properties). The Corporation also agreed to purchase Petrolia’s remaining 14.577% working interest for $585,000, payable by $75,000 in cash and $510,000 by the issue of convertible debentures pursuant to a purchase and sale agreement and a subscription agreement, both dated January 27, 2022. This transaction resulted in Prospera’s acquisition of an additional total working interest of 28% in each of the Properties. The convertible debentures can be converted into common share units at the option of the holder for a two-year term at $0.05 during the first year and $0.10 during the second year, bear interest at 8% per annum. Each unit consists of one common share and one warrant exercisable at $0.075 for two years from issuance, subject to the Corporation’s right to accelerate the expiry date if the common shares of the Corporation trade at $0.30 for a period of 20 consecutive days. Applicable interest will be payable in cash or in shares at the then market price, at the discretion of the Corporation.

Pursuant to a Purchase and Sale Agreement dated April 7, 2022, the Corporation agreed to purchase an undivided 50% working interest in light oil producing assets located near Cassels, Alberta for $302,000 payable by the issuance of that number of convertible debentures on the same terms as set out above, other than the debentures which are convertible at $0.075. The vendor in this transaction was a private Alberta corporation of which Samuel David, the President of the Corporation, had an ownership interest. The Corporation’s independent Directors negotiated the transaction and relied on exemptions contained in MI 61-101 of which the market value did not meet the 25% of the Corporation’s market cap.

These transactions are subject to TSX-Venture Exchange approval.

About Prospera 

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

For more information, please contact:

Shawn Mehler, Public relations 
Prospera Energy Inc