Prospera Energy Announces Acquisition of White Tundra Petroleum, Operations Update, and Convertible Debt Repayment Terms
Prospera Energy (GXRFF) has announced the acquisition of White Tundra Petroleum (WTP), expanding its portfolio with medium oil assets near Loyalist and Hanna, Alberta. The deal involves issuing 18M common shares to WTP shareholders, contingent on achieving 85 boe/d production for three consecutive days - a condition already met. An additional 7.3M shares bonus is offered if production reaches 128 boe/d within six months.
The company will assume $695,000 in debt and deploy a $200,000 workover program. Current production has reached 878 boe/d (94% oil), with Luseland at 130 boe/d and Hearts Hill at 208 boe/d.
Additionally, Prospera has restructured its $1.5M convertible debt plus $559,374.82 accrued interest through: a 12-month promissory note at 12% interest with $250,000 monthly payments starting after 6 months; a $200,000 convertible note at 12% interest ($0.05/share); and remaining interest settled through shares at $0.04/share, reducing diluted share count by 30M shares.
Prospera Energy (GXRFF) ha annunciato l'acquisizione di White Tundra Petroleum (WTP), ampliando il suo portafoglio con asset di petrolio medio vicino a Loyalist e Hanna, Alberta. L'accordo prevede l'emissione di 18 milioni di azioni ordinarie agli azionisti di WTP, subordinato al raggiungimento di una produzione di 85 boe/d per tre giorni consecutivi - una condizione già soddisfatta. Viene offerto un ulteriore bonus di 7,3 milioni di azioni se la produzione raggiunge 128 boe/d entro sei mesi.
L'azienda assumerà un debito di 695.000 dollari e attuerà un programma di lavoro da 200.000 dollari. La produzione attuale ha raggiunto 878 boe/d (94% petrolio), con Luseland a 130 boe/d e Hearts Hill a 208 boe/d.
Inoltre, Prospera ha ristrutturato il suo debito convertibile di 1,5 milioni di dollari più 559.374,82 dollari di interessi maturati attraverso: una cambiale di 12 mesi al 12% di interesse con pagamenti mensili di 250.000 dollari a partire dopo 6 mesi; una nota convertibile da 200.000 dollari al 12% di interesse (0,05 dollari/azione); e gli interessi rimanenti regolati attraverso azioni a 0,04 dollari/azione, riducendo il numero di azioni diluite di 30 milioni di azioni.
Prospera Energy (GXRFF) ha anunciado la adquisición de White Tundra Petroleum (WTP), ampliando su cartera con activos de petróleo medio cerca de Loyalist y Hanna, Alberta. El acuerdo implica la emisión de 18 millones de acciones comunes a los accionistas de WTP, condicionado a alcanzar una producción de 85 boe/d durante tres días consecutivos, una condición que ya se ha cumplido. Se ofrece un bono adicional de 7,3 millones de acciones si la producción alcanza 128 boe/d en seis meses.
La empresa asumirá una deuda de 695.000 dólares y desplegará un programa de trabajo de 200.000 dólares. La producción actual ha alcanzado 878 boe/d (94% petróleo), con Luseland en 130 boe/d y Hearts Hill en 208 boe/d.
Además, Prospera ha reestructurado su deuda convertible de 1,5 millones de dólares más 559.374,82 dólares de intereses acumulados a través de: un pagaré de 12 meses al 12% de interés con pagos mensuales de 250.000 dólares que comenzarán después de 6 meses; una nota convertible de 200.000 dólares al 12% de interés (0,05 dólares/acción); y los intereses restantes se liquidarán a través de acciones a 0,04 dólares/acción, reduciendo el número de acciones diluidas en 30 millones de acciones.
Prospera Energy (GXRFF)는 White Tundra Petroleum (WTP)의 인수를 발표하며 Loyalist와 Hanna, Alberta 근처에 중유 자산을 추가했습니다. 이번 거래는 3일 연속으로 85 boe/d의 생산량을 달성하는 조건으로 WTP 주주에게 1,800만 주의 보통주를 발행하는 것을 포함하며, 이 조건은 이미 충족되었습니다. 추가로 6개월 이내에 생산량이 128 boe/d에 도달하면 730만 주의 보너스가 제공됩니다.
회사는 695,000달러의 부채를 인수하고 200,000달러의 작업 프로그램을 배치할 것입니다. 현재 생산량은 878 boe/d(94% 원유)에 도달했으며, Luseland은 130 boe/d, Hearts Hill은 208 boe/d입니다.
또한 Prospera는 1.5백만 달러의 전환사채와 559,374.82달러의 발생 이자를 12개월 만기, 12% 이자율의 어음으로 재구성하였으며, 6개월 후부터 월 250,000달러의 지급이 시작됩니다; 200,000달러의 전환사채는 12% 이자율로 (주당 0.05달러); 나머지 이자는 주당 0.04달러로 주식으로 정산되어 희석된 주식 수를 3천만 주 줄입니다.
Prospera Energy (GXRFF) a annoncé l'acquisition de White Tundra Petroleum (WTP), élargissant son portefeuille avec des actifs pétroliers moyens près de Loyalist et Hanna, Alberta. L'accord implique l'émission de 18 millions d'actions ordinaires aux actionnaires de WTP, sous condition d'atteindre une production de 85 boe/d pendant trois jours consécutifs - une condition déjà remplie. Un bonus supplémentaire de 7,3 millions d'actions est proposé si la production atteint 128 boe/d dans les six mois.
L'entreprise assumera une dette de 695 000 dollars et mettra en œuvre un programme de travaux de 200 000 dollars. La production actuelle a atteint 878 boe/d (94% pétrole), avec Luseland à 130 boe/d et Hearts Hill à 208 boe/d.
De plus, Prospera a restructuré sa dette convertible de 1,5 million de dollars plus 559 374,82 dollars d'intérêts accumulés par le biais de : une note promissoire de 12 mois à 12% d'intérêt avec des paiements mensuels de 250 000 dollars commençant après 6 mois ; une note convertible de 200 000 dollars à 12% d'intérêt (0,05 dollars/action) ; et les intérêts restants réglés par des actions à 0,04 dollars/action, réduisant le nombre d'actions diluées de 30 millions d'actions.
Prospera Energy (GXRFF) hat die Übernahme von White Tundra Petroleum (WTP) bekannt gegeben und erweitert damit sein Portfolio um mittlere Ölressourcen in der Nähe von Loyalist und Hanna, Alberta. Der Deal umfasst die Ausgabe von 18 Millionen Stammaktien an die WTP-Aktionäre, abhängig davon, dass eine Produktion von 85 boe/d an drei aufeinander folgenden Tagen erreicht wird - eine Bedingung, die bereits erfüllt ist. Ein zusätzlicher Bonus von 7,3 Millionen Aktien wird angeboten, wenn die Produktion innerhalb von sechs Monaten 128 boe/d erreicht.
Das Unternehmen wird Schulden in Höhe von 695.000 Dollar übernehmen und ein Arbeitsprogramm in Höhe von 200.000 Dollar umsetzen. Die aktuelle Produktion hat 878 boe/d (94% Öl) erreicht, wobei Luseland bei 130 boe/d und Hearts Hill bei 208 boe/d liegt.
Darüber hinaus hat Prospera seine 1,5 Millionen Dollar konvertierbare Schulden sowie 559.374,82 Dollar aufgelaufene Zinsen umstrukturiert durch: einen 12-monatigen Schuldschein mit 12% Zinsen und monatlichen Zahlungen von 250.000 Dollar, die nach 6 Monaten beginnen; eine 200.000 Dollar konvertierbare Anleihe mit 12% Zinsen (0,05 Dollar/Aktie); und die verbleibenden Zinsen werden durch Aktien zu 0,04 Dollar/Aktie ausgeglichen, wodurch die Anzahl der verwässerten Aktien um 30 Millionen Aktien reduziert wird.
- Production increased 10% to 878 boe/d (94% oil)
- Hearts Hill reached highest production since 2019 at 208 boe/d
- Luseland achieved highest production since Dec 2023 at 130 boe/d
- Convertible debt restructuring reduces diluted share count by 30M shares
- Strategic acquisition adds low-decline production assets
- Assuming $695,000 in additional debt from WTP acquisition
- Significant share dilution with 18M new shares plus potential 7.3M bonus shares
- $1.5M debt refinancing requires $250,000 monthly payments after 6 months
- Related party transaction with Chairman involved in both companies
CALGARY, Alberta, March 06, 2025 (GLOBE NEWSWIRE) -- Prospera Energy Inc. (TSX.V: PEI, OTC: GXRFF) ("Prospera", “PEI” or the "Corporation")
White Tundra Acquisition
Prospera Energy is pleased to announce a strategic acquisition aimed at expanding its asset portfolio of low-decline base production with significant production upside. The Corporation has entered into an agreement to acquire
As part of the transaction, 18,000,000 common shares of PEI will be issued to WTP shareholders, contingent upon WTP achieving 85 barrels of oil equivalent per day (boe/d) for three consecutive days across its properties. This condition was achieved based on production levels from February 27th to March 1st. A performance-based bonus of 7,312,500 additional shares will be issued if production of 128 boe/d can be demonstrated for at least seven consecutive days within six months from the acquisition date. The Corporation is also assuming
Prospera will assume operational oversight of WTP on March 6th, 2025, and immediately deploy a
This transaction qualifies as a related party transaction. Shubham Garg serves as Prospera’s Chairman of the Board, the CEO of WTP, and is a shareholder of WTP. The Corporation has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(a) of MI 61-101 in respect of such insider participation. In addition, the related party director has recused himself from all board discussions including the acquisition’s deal structure, valuation, and decisions in relation to this transaction.
The Corporation has strengthened its corporate governance policies, including full public disclosure of monthly operational updates. These policies are now transparently available on Prospera’s website which include the PEI board mandate, PEI audit committee charter, PEI disclosure policy, ESTMA reports, and PEI related parties policies. This highlights Prospera’s renewed commitment to enhanced transparency, public disclosure, and governance.
Operations Update:
Following the February operations update, PEI production continues to increase, exiting February at 878 boe/d (
Convertible Debt
Prospera is pleased to announce that it has reached a settlement agreement with its convertible debt holders to address the upcoming maturity of its
Under the terms of the agreement:
- The
$1,500,000 principal will be refinanced through the issuance of a 12-month promissory note bearing12% interest, with monthly principal repayments of$250,000 commencing six months after issuance. Interest will be paid as a balloon payment at the end of the term. $200,000 of outstanding interest will be settled through a 12-month convertible note at12% interest, convertible into PEI common shares at$0.05 per share. Prospera retains the right to pay this note in cash by providing thirty days notice, during which the holder retains the right to convert.- The remaining
$359,374.82 in accrued interest will be settled through a shares-for-debt agreement at$0.04 per share, subject to TSXV acceptance.
The convertible debt settlement reduces Prospera’s total fully diluted share count by 30,000,000 common shares, resulting in a net reduction of (17,015,630) shares to Prospera’s fully diluted scenario after accounting for the shares for debt and convertible debt transactions. PEI’s capitalization table is available in its corporate deck at ProsperaEnergy.com.
About Prospera
Prospera Energy Inc. is a publicly traded Canadian energy company specializing in the exploration, development, and production of crude oil and natural gas. Headquartered in Calgary, Alberta, Prospera is dedicated to optimizing recovery from legacy fields using environmentally safe and efficient reservoir development methods and production practices. The company’s core properties are strategically located in Saskatchewan and Alberta, including Cuthbert, Luseland, Hearts Hill, and Brooks. Prospera Energy Inc. is listed on the TSX Venture Exchange under the symbol PEI and the U.S. OTC Market under GXRFF.
Prospera reports gross production at the first point of sale, excluding gas used in operations and volumes from partners in arrears, even if cash proceeds are received. Gross production represents Prospera’s working interest before royalties, while net production reflects its working interest after royalty deductions. These definitions align with ASC 51-324 to ensure consistency and transparency in reporting.
For Further Information:
Shawn Mehler, PR
Email: investors@prosperaenergy.com
Chris Ludtke, CFO
Email: cludtke@prosperaenergy.com
Shubham Garg, Chairman of the Board
Email: sgarg@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 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
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