Prospera Energy Announces 1st Closing of Debt Financing for 2023 Capital Development Program

Rhea-AI Summary

Prospera Energy announces the first closing of a non-brokered private placement financing of CDN $3.015 million to support its 2023 phase 2 capital program. This initiative involves SK HZ and AB directional drilling, an LMR plan aimed at reducing ARO, and enhancing infrastructure for growth. The financing could raise up to CDN $5 million overall, with a focus on minimizing equity dilution, projected at less than 2%.

The offering includes units consisting of common shares and 8% promissory notes. Proceeds will fund infrastructure upgrades, well development, ESG initiatives, and general working capital. The debt financing is subject to TSX Venture Exchange approval.

Positive

• Successful first closing of CDN $3.015 million in financing for growth initiatives.
• Potential to raise up to CDN $5 million with only <2% equity dilution expected.
• Funds will support critical infrastructure upgrades and ESG initiatives.

Negative

• None.

Not for distribution in the United States

CALGARY, Alberta, April 13, 2023 (GLOBE NEWSWIRE) -- Prospera Energy Inc. PEI: TSX-V; OF6A: FRA, OTC: GXRFF

Prospera Energy announces the first closing of CDN $3.015 million non-brokered private placement financing of debt with an equity bonus to fund its 2023 phase 2 capital program that entails SK HZ and AB directional drilling, LMR plan to reduce ARO & environmental footprint and upgrade infrastructure to accommodate planned growth. The financing is subject to approval by the TSX Venture Exchange.

Debt Term Sheet

Issuer:	Prospera Energy Inc. (“Prospera” or the “Corporation”).
Issue:	Non-brokered offering (the "Offering") of units ("Units"). Each Unit consists of (I) one-thousand common shares of the Corporation (issued at closing); and (ii) one 8% 2-year promissory note in the principal amount of $1,000.
Term:	Principal repaid at the end of 2 years
Underlying Shares:	Common shares of the Company listed on the TSX Venture Exchange under the symbol PEI (the “Common Shares”).
Use of Proceeds:	Prospera intends to use the net proceeds of the Offering for infrastructure upgrades to accommodate further production growth, well development capital, well abandonment costs, ongoing ESG initiatives and general working capital.
Interest:	8% interest per annum, calculated and paid quarterly in cash starting after the 2nd quarter (interest in the first quarter is compounded).
Minimum Investment:	Notes will be issued in denominations of $1,000, subject to a minimum investment of $10,000.
Offering Basis:	Non- brokered private placement offering.

An aggregate amount of up to $5,000,000 CAD may be raised through this non-brokered private placement. The company remains focused on minimal dilution financing options moving forward and if fully subscribed, this debt financing would only represent less than 2% equity dilution.

The securities will be offered to qualified purchasers in reliance upon exemptions from prospectus and registration requirements of applicable securities legislation. A finder's fee in cash and/or warrants may be paid to eligible finders in relation to this financing. These private placements are offered in jurisdictions where the Corporation is legally allowed to do so.

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 utilize experience and knowledge to develop, acquire, and drill assets with potential for primary and secondary recovery.

For Further Information:

Shawn Mehler, PR
Email: shawn@prosperaenergy.com
Website: www.prosperaenergy.com

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “anticipate,” “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Although Prospera believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Prospera can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Prospera. As a result, Prospera cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on any forward- looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Prospera does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

FAQ

What is the purpose of the private placement financing by Prospera Energy (GXRFF)?

The private placement financing aims to fund Prospera Energy's 2023 phase 2 capital program, which includes directional drilling and infrastructure upgrades.

How much has Prospera Energy raised in its first closing of the financing?

Prospera Energy has raised CDN $3.015 million in its first closing of the non-brokered private placement financing.

What is the expected equity dilution from the financing of GXRFF?

The financing is expected to result in less than 2% equity dilution for Prospera Energy.

What are the terms of the promissory notes in the financing by Prospera Energy?

The promissory notes have an 8% interest rate per annum and will be repaid in full at the end of 2 years.