Prospera Vitality has closed the acquisition of a ten p.c working curiosity in every of the Hearts Hill, Luseland, and Cuthbert properties in Saskatchewan and Alberta, Canada, from an arm’s size three way partnership accomplice.
The entire buy worth for the transaction was roughly $1.26 million (CAD 1.8 million), consisting of $280,000 (CAD 400,000) in money to be paid over 16 months, $140,000 (CAD 200,000) in fairness via the issuance of round 3.1 million Prospera widespread shares, and the forgiveness of all excellent money owed totaling round $0.84 million (CAD 1.2 million) owed by the three way partnership accomplice.
Moreover, 3,076,923 warrants had been issued, permitting the holder to amass one Prospera widespread share at a worth of CAD 0.10 within the first 12 months and CAD 0.15 within the second 12 months, the corporate mentioned in a information launch.
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Prospera has one hundred pc possession of the Luseland asset, which has oil reserves of an estimated 280 million barrels of authentic oil in place (OOIP). The corporate has additionally gained one hundred pc possession of the Hearts Hill property, which accommodates the very best API oil among the many three heavy-oil property and holds upside potential within the Sparky formation. In Cuthbert, its working curiosity elevated to 86 p.c, based on an earlier assertion.
Each Hearts Hill and Cuthbert property have full infrastructure in place with amenities that may deal with 75,000 barrels of emulsion every.
The acquisition “considerably enhances Prospera’s management over its most substantial useful resource, enabling optimized improvement and administration of those reserves,” it mentioned.
In September 2024, Prospera mentioned it transitioned to the Hearts Hill Bakken horizontal drilling program. The Sparky Waterflood pilot has been initiated, together with recompletions and conversions, it mentioned.
Prospera mentioned it accomplished a complete of thirty-two workovers and reactivations within the first quarter earlier than releasing service rigs for spring break-up on March 20, together with 16 service rig jobs in Hearts Hill, 11 jobs in Luseland that consisted primarily of high-impact reactivations, and 5 jobs in Cuthbert.
Earlier within the month, Prospera introduced the acquisition of White Tundra Petroleum, which has property close to Loyalist and Hanna in Alberta, Canada.
The acquisition strengthens Prospera’s base manufacturing and “gives quite a few high-impact reactivation alternatives,” the corporate mentioned. The transaction is topic to TSX Enterprise Trade acceptance.
As a part of the transaction, 18 million shares of Prospera might be issued to White Tundra shareholders, contingent upon White Tundra attaining 85 barrels of oil equal per day (boepd) for 3 consecutive days throughout its properties. A performance-based bonus of round 7.3 million extra shares might be issued if manufacturing of 128 boepd will be demonstrated for no less than seven consecutive days inside six months from the acquisition date. Prospera can also be assuming $695,000 in debt as a part of the transaction, it mentioned.
Prospera mentioned it might assume operational oversight of White Tundra and instantly deploy a $200,000 workover and reactivation program to optimize manufacturing past 128 boepd. The bonus share consideration might be issued following the ultimate assertion of changes and verification of sustained manufacturing ranges.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
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