- Prospera Energy (PEI) has announced its recent strategic property acquisitions to increase its asset value
- The company settled debt receivable to it by joint venture partner Petrolia Canada Corporation of approximately $1,700,000
- It also agreed to acquire Petrolia’s remaining 14.577 per cent working interest for $585,000
- It agreed to purchase an undivided 50 per cent working interest in light oil producing assets located near Cassels, Alberta
- Prospera is a public oil and gas exploration, exploitation and development company
- Prospera Energy Inc. opened the day’s trading at $0.08 per share
Prospera Energy (PEI) has announced its recent property acquisitions to increase its asset value.
The company settled debt receivable to it by joint venture partner Petrolia Canada Corporation of approximately $1,700,000.
Prospera settled the debt by acquiring an undivided 13.423 per cent working interest in the Cuthbert, Luseland and Hearts Hill properties in Saskatchewan and Alberta by an arms-length debt settlement agreement.
The corporation also agreed to acquire Petrolia’s remaining 14.577 per cent working interest for $585,000. This will be paid for by $75,000 in cash and $510,000 by the issue of convertible debentures.
As a result, Prospera acquired an additional total working interest of 28 per cent in each of the properties.
The convertible debentures can be converted into common share units at the holder’s option for a two-year term at $0.05 during the first year and $0.10 during the second year, bearing annual interest at 8 per cent.
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 20 consecutive days.
In line with a purchase-and-sale agreement dated April 7, 2022, the corporation agreed to purchase an undivided 50 per cent working interest in light oil-producing assets located near Cassels, Alberta.
The company will pay $302,000 for this through the issuance of that number of convertible debentures on the same terms as set out above, other than the debentures which are convertible at $0.075.
Prospera is a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in Western Canada.
Prospera Energy Inc. opened the day’s trading at $0.08 per share.
