- Prospera agreed to purchase an undivided 50-per-cent working interest in exploration lands located near Cassels, Alberta for $302,000
- This light-oil asset is made up of shallow pools that can be developed with vertical wells and recompletion of existing wells
- Prospera Energy Inc. 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 trading at $0.065 per share
Prospera Energy (PEI) has acquired a 50 per cent working interest in exploration lands located near Cassels, Alberta to diversify its oil product mix and realize a higher margin.
This acquisition is entirely success-based eliminating any requirement for large up-front capital investment.
This asset provides Prospera with a significant development opportunity along the light-oil formation fairway.
This light-oil asset is made up of shallow pools that can be developed with vertical wells and recompletion of existing wells.
Operations of these wells can be maintained with solution gas and pressure supported through water injection resulting in low capital deployment and low operating expense to maintain.
The parties have amended a purchase and sale agreement dated April 7, 2022, following which Prospera agreed to purchase an undivided 50-per-cent working interest in exploration lands located near Cassels, Alberta for $302,000 payable by the issuance of that number of convertible debentures.
The convertible debentures are now convertible into common share units at the option of the holder at $0.075 during the first year and $0.10 during the second year, bear an annual interest at 8 per annum, and are for a two-year term.
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 a period of 20 consecutive days.
Applicable interest will be payable in cash or shares at the then market price, at the option of the Corporation.
The vendor is a private Alberta corporation in which Sam David, the president of the Corporation, has an ownership interest.
Prospera Energy Inc. 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 trading at $0.065 per share.
