Is there any chance that Prospera might be able to add their newly discovered natural gas to its revenue stream? All sources of revenue should be considered as an option. Is there any available pipeline infrastructure to ship large volumes of gas to market without any additional expense to build it out?
"...Two pilots were completed in Q2, 2022. These laterals encountered structure, pay, and oil as per geological, seismic, and reservoir prognosis. This pay was porous and highly permeable held together by the medium heavy oil. Also, encountered unexpected prolific gas in the build section. The final pilot is expected to spud in the middle of October 2022 tweaked from the learnings of the first two pilots. PEI is pleased with the encouraging results and the learnings from the two pilots. The final pilot is expected to deliver initial production rate 75-100bpd to recover 100Mstb at a cost of approximately 800k$ per well..." https://money.tmx.com/en/quote/PEI/news/6736261871859873/Prospera_Announces_Significant_Development_Plan_to_Increase_Production The company's goal is to become a low cost producer of oil, heavy and light. The company may be lucky that their recent horizontal drilling campaign is also encountering natural gas as well as the medium heavy crude oil in these remarkably porous, permeable and easily exploited carbon rich underground structures. And all of the geological work has already been done to hone in on the resource. All Prospera has to do is drill and let the oil and gas, already under pressure, just flow through the pipe, up to the surface. And the surface oil pipelines have already been built by a former company which will be used to ship the hydro-carbons to the market place.
Low cost producer indeed! And these new drilling efforts are about to multiply in an exponential way. There are many more of these discarded but still valuable vertical wells, left to drill!
The guys running this show, really seem to know what they are doing!
And company insiders have skin in the game! What's not to like when the CEO has added his ownership stake (in a light oil property) to the near term future valuation from the company's revenue stream. He like other stakeholders in this property, stand to gain, but only inasmuch as the company is successful in fully exploiting the available resources. From a shareholder's perspective, everyone can be a winner!
"...The Corporation agreed to purchase an undivided 50% working interest in exploration lands located near Cassels, Alberta for $302,000 payable by the issuance of that number of convertible debentures. The convertible debentures are convertible into common share units at the option of the holder at $0.075 during the first year and $0.10 during the second year, bear interest at 8% per annum, and are for a two-year term. 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 shares at the then market price, at the option of the Corporation. Any such issuance of shares will be subject to TSX Venture Exchange (the “ Exchange ”) review and acceptance. The vendor in this transaction was a private Alberta corporation of which Sam David, the president of the Corporation, had an ownership interest. The Corporation’s independent directors negotiated the transaction and relied on exemptions contained is MI 61-101 in that the market value did not meet the 25% of the Corporation’s market cap." The Corporation has the right to recomplete an additional well, on the basis of such costs being split equally with the Vendor. If successful, the Corporation will pay an additional $405,500 (half cash and half in common shares at the then 30-day weighted average price) to purchase a 50% interest in such well and lands. Share consideration is due 30 days after the successful resumption of oil production and is to be adjusted based on initial 30 days of production realized vs. reserves report documented production rate. Cash consideration is payable from PEI portion of net profit (paid after the fact) and subject to the same adjusted basis as the share consideration.
If the first Option is exercised, the Corporation will have the right to recomplete 2 further wells on the same basis. If successful, the Corporation will pay $1,776,000 on the same basis as above for a 50% working interest in the additional wells and property. Similar to the additional well recompletion (above), share consideration is due 30 days after the successful resumption of oil production and is to be adjusted based on initial 30 days of production realized vs. reserves report documented production rate. Cash consideration is payable from PEI portion of net profit (paid after the fact) and subject to the same adjusted basis as the share consideration.
https://money.tmx.com/en/quote/PEI/news/8462556668104459/Prospera_Announces_Closing_of_Light_Oil_Property_Acquisition
A 50% ownership of a oil or gas property can be an extremely profitable enterprise for every business party involved. Perhaps more of this kind of mutually beneficial financial interaction may also been done in the future? As always,
insiders need to be seen to have a real stake in the company. It really matters to shareholders that the company managers and directors want the company to be as successful as their shareholders do. And the sooner, the better. Time waits for no one!
Shareholders now have a CEO who is really determined to be successful!
Sam David is now, fully committed!
Good for him!
And yes, I now have skin in this game too. I also want to be, on this winning side!
I decided to buy some shares.
All the best! Java