- Prospera Energy (PEI) has closed its previously-described debt settlement and working interest acquisitions agreements
- The corporation settled debt owing to it by joint venture partner Petrolia Canada Corporation of approximately $1,700,000
- Prospera executed this by the acquisition of an undivided 13.423 per cent working interest in the Cuthbert, Luseland and Hearts Hill properties located in Saskatchewan and Alberta
- At the closing of this transaction, Prospera owns a total undivided working interest of 69 per cent in the Cuthbert and 84 per cent in Luseland and Hearts Hills
- Prospera is a Canadian natural resource company engaged in the acquisition, exploration, development and production of oil and gas properties
- Prospera Energy Inc. opened trading at $0.06 per share
Prospera Energy (PEI) has closed its previously-described debt settlement and working interest acquisitions agreements.
In line with an arms-length debt-settlement agreement dated February 16, 2022, the corporation settled debt owing to it by joint venture partner Petrolia Canada Corporation of approximately $1,700,000.
Prospera executed this by the acquisition of an undivided 13.423 per cent working interest in the Cuthbert, Luseland and Hearts Hill properties located in Saskatchewan and Alberta.
The corporation also agreed to purchase Petrolia’s remaining 14.577 per cent working interest for $585,000, payable by $75,000 in cash and $510,000 by the issue of convertible debentures. This was in accordance with a purchase-and-sale agreement and a subscription agreement, both dated January 27, 2022.
At the closing of this transaction, Prospera owns a total undivided working interest of 69 per cent in the Cuthbert and 84 per cent in Luseland and Hearts Hills.
The convertible debentures are convertible into common share units at the option of the holder at $0.05 during the first year and $0.10 during the second year, bear interest at 8 per cent 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.
Prospera is a Canadian natural resource company engaged in the acquisition, exploration, development and production of oil and gas properties with operations in Alberta and western Saskatchewan.
Prospera Energy Inc. opened trading at $0.06 per share.
