Energy Inc. (TSX.V: PEI, OTC: GXRFF) (“Prosper”, “WHO” or the “Corporation”)
Prospera Energy is pleased to announce the commencement of a major pipeline replacement and infrastructure upgrade project in the Cuthbert area. The project involves the replacement of two major existing pipelines over a ten-day construction period, with a total capital investment of approximately $500,000.
The new pipelines are constructed using corrosion-resistant and spoolable FlexSteel material, replacing aging composite pipes that previously limited Prospera’s ability to manage water injection and maintain optimal reservoir pressure. Failures in the older lines had significantly reduced water handling capacity, necessitating the temporary closure of certain wells. Upgrading to FlexSteel improves system integrity, improves leak detection and ensures long-term operational reliability, while minimizing environmental risk. The project is expected to increase waterflood injection capacity by approximately 2,500 to 3,500 m³ per day, increasing total field capacity from the current approximately 3,200 m³ per day. In addition, a third water injection pump will be installed at the Cuthbert 2-2 battery following overhaul and maintenance. Collectively, these upgrades are expected to add approximately 150 barrels of oil per day to incremental production once stabilized over a two- to four-week ramp-up period.
“This initiative allows for more efficient redistribution of water from the north side of the basin to the south, alleviating overinjection in certain zones while restoring pressure support in underinjected areas with low Voidage Replacement Ratios (VRR). It gives our reservoir engineering team the flexibility to dynamically adjust flood patterns, accelerate recovery optimization and bringing additional production wells online in the southern part of the field. Now that harvest has been completed in the region, we can carry out the water injections work with minimal disruption to the land, while implementing long-term infrastructure that supports stable, optimized production,” said Darren Jackson, Chief Operating Officer of Prospera. “This is an important step in modernizing our field systems and preparing for the next phase of growth.”
Due to the severe weather conditions in the region and existing deficiencies in pipeline quality, the total pressure of the water flooding system has been operating at around 5,000 kPa, below the optimal range of 6,500 to 8,000 kPa. The new pipeline replacements will significantly improve system reliability, reservoir efficiency and injection stability, laying the foundation for higher sustained reservoir pressure, consistent production performance and improved long-term recovery factors.
In addition to direct production gains, this project also delivers material cost savings through reduced downtime, fewer maintenance interventions and optimized field operations. The surplus FlexSteel pipe and fittings from this facility will be used for future infrastructure improvements, extending these operational and environmental benefits to Prospera’s broader heavy oil production base.
This project marks another important milestone in Prospera’s overall redevelopment plan: executing targeted infrastructure projects to modernize the company’s assets, optimize reservoir management and position field operations for sustainable production growth in 2025 and beyond, while reducing field operating costs and increasing netbacks.
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 focuses on optimizing oldfield recovery 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 on the US 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 working interest after deducting royalties. These definitions are consistent with ASC 51-324 to ensure consistency and transparency in reporting.
For more information:
Shawn Mehler, IR
E-mail: investors@prosperaenergy.com
Chris Ludtke, CFO
E-mail: cludtke@prosperaenergy.com
Shubham Garg, Chairman of the Board of Directors
E-mail: sgarg@prosperaenergy.com
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding the company’s future operations and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will,” “may,” “should,” “anticipate,” “expect” and similar expressions. All statements other than statements of historical fact included in this press release, including but not limited to statements regarding the company’s future plans and objectives, 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 as Prospera can give no assurance that they will prove to be correct. Because forward-looking statements relate to future events and circumstances, by their nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently expected due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry generally (for example, operational risks in development, exploration and production; delays or changes in plans relating to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenditures, and health, safety and environmental risks), fluctuations in commodity prices and exchange rates and uncertainties arising from potential risks. delays or changes in plans relating to exploration or development projects or capital expenditures.
The reader is cautioned that assumptions used in preparing forward-looking information may prove to be incorrect. Events or circumstances could cause actual results to differ materially from those predicted, due to numerous known and unknown risks, uncertainties and other factors, many of which are beyond Prospera’s control. As a result, Prospera cannot guarantee that any forward-looking statement will materialize, and the reader is cautioned not to place undue reliance on forward-looking information. Although this information was considered reasonable by management at the time of preparation, it may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Prospera undertakes no obligation to publicly update or revise the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities laws.
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.
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