Prospera Energy Reports 2025 Year-End Audited Financials And Reserves

May 01, 2026 7:00 AM EDT | Source: Prospera Energy Inc.

Prospera Energy Inc. (TSXV: PEI) (OTC Pink: GXRFF) (" Prospera ", " PEI ", the " Company ", or the " Corporation ")
Calgary, Alberta--(Newsfile Corp. - May 1, 2026) -

Overview of 2025 & 2026 Outlook

Prospera Energy is pleased to report its operational and financial results for the year ended December 31, 2025, together with its independently evaluated reserves prepared by Sproule ERCE effective December 31, 2025. Prospera anchored in a deliberate strategy of converting wells previously slated for abandonment into long-life, low-cost producing reserves, and 2025 was a transformational year in the execution of that strategy.

During the year, Prospera completed operational, organizational, and financial groundwork that positioned the Corporation to execute on its long-term growth strategy. Operationally, the Corporation advanced its Luseland reactivation program - the Corporation's principal organic growth engine - through the successful reactivation of 17 wells across the Luseland asset. In parallel, the Corporation deployed capital into upgrades to the Cuthbert and Hearts Hill plant, gathering pipelines and water injection infrastructure increasing production and processing capacity and improving the Corporation's waterflood capability. Strategically, the Corporation closed the acquisition of White Tundra Petroleum on August 29, 2025, broadening the production base, and on September 15, 2025 closed the final 14% working interest acquisition at Cuthbert, taking the Corporation's working interest in its three core heavy oil properties to 100%. Average net sales rose 19% year-over-year to 745 BOE/d in Q4 2025, full-year sales volumes grew 14.5% to 273,333 BOE, and Q4 2025 operating costs declined 24% on a per-BOE basis compared with Q4 2024. These foundations support the Corporation's plan to convert its multi-year proved plus probable reserve life into sustained production growth and operating cash flow through 2026 and beyond.

Looking forward, management's 2026 priorities follow directly from the foundations established in 2025. The Corporation intends to: (i) extend the Luseland reactivation program to additional candidates within the Saskatchewan core during 2026, subject to commodity prices, capital availability, and regulatory approvals; (ii) realize, on a full-year basis, the productive capacity, processing-capacity and waterflood improvements achieved through the 2025 capital program at the Cuthbert plant, gathering pipelines and water injection infrastructure, which support additional production capability; (iii) integrate the White Tundra asset bases into the Corporation's field operations and benefit from a full year of consolidated working interest production; (iv) continue the workforce, operating-cost and overhead reset achieved during 2025; (v) progress balance sheet initiatives with the objective of further reducing current financial liabilities and extending maturities; and (vi) realize the benefit of the post year-end commodity price recovery on operating netback and operating cash flow.

The Corporation's December 31, 2025 evaluation of P&NG reserves prepared by Sproule ERCE supports a multi-year proved plus probable reserve life. Estimated future development costs associated with the Corporation's proved plus probable reserves were $60.9 million at December 31, 2025, compared with $44.1 million at December 31, 2024, reflecting the expanded reserve base resulting from the White Tundra acquisition and from working interest acquisitions completed during 2024 and 2025. The Corporation's strategic focus is to convert this multi-year reserve base into production growth and operating cash flow on a disciplined basis, prioritizing capital allocation toward the Luseland reactivation program and other high-return reactivation and optimization opportunities within the Saskatchewan core.

2025 Year-End Reserves

Prospera Energy is pleased to announce its 2025 year-end reserves, highlighting significant growth in total proved (1P) reserves, total proved plus probable (2P) reserves, and the reserve life index. The growth in Prospera's 2025 year-end reserves is a direct outcome of the Company's deliberate value-creation strategy, which prioritizes the systematic reactivation of existing wellbores. The Luseland field is the clearest demonstration of this strategy in action: through the Company's 2025 reactivation program, 10 wells that were previously classified as No Reserves Assigned (NRA) have been returned to production and recategorized as Proved Developed Producing (PDP), and other reactivation candidates adjacent to 2025's reactivated wells have now been categorized as Proved Developed Non-Producing (PDNP) based on the success of 2025's reactivated wells. This conversion of NRA wellbores into booked reserves represents incremental reserve additions and validates the technical and operational thesis underlying Prospera's capital allocation framework. Management views this result as confirmation that the reactivation-led strategy is delivering as designed and intends to continue applying the same disciplined approach across its asset base in 2026.

Furthermore, the acceleration of well reactivations has deferred asset retirement obligations (ARO) by extending the economic life and productivity of these assets. By reactivating wells rather than abandoning them, Prospera is transforming legacy liabilities into revenue-generating assets - increasing cash flow today while deferring abandonment costs into the future. Looking ahead, by prioritizing the conversion of PDNP and maturation of Proved Undeveloped (PUD) wells into PDP assets, Prospera intends to further bolster its production, cash flow, and ability to attract growth capital in support of its long-term reserves development vision.

The reserves and future net revenue of Prospera Energy were independently prepared by Sproule ERCE in accordance with the Canadian Oil & Gas Evaluation Handbook (COGEH) standards. The evaluation assumes that each property included in the estimate will be developed, without considering the Corporation's ability to secure the necessary funding for that development. The oil and gas annual disclosure filing can be found on SEDAR+ ( ).

2025 Reserves Key Highlights:

Gross PDP reserves amount increased by 21% from 1,373 to 1,655 Mboe (92% liquids). Gross PDNP reserves amount increased by 62% from 745 to 1,204 Mboe (91% liquids). Gross 1P reserves amount increased by 28% from 4,792 to 6,154 Mboe (94% liquids). Gross 2P reserves amount increased by 31% from 6,793 to 8,884 Mboe (94% liquids). Gross 1P reserves increased 17% from $111.4MM to $130.6MM at a 10% discount rate. Gross 2P reserves increased 27% from $159.3MM to $202.0MM at a 10% discount rate. The 1P reserve life index increased by 52% from 26.7 to 40.7 years. The 2P reserve life index increased by 58% from 31.7 to 50.0 years. Luseland Gross PDP reserves amount increased by 60% from 229 Mbbl to 365 Mbbl. Luseland Gross PDNP reserves amount increased by 133% from 164 Mbbl to 382 Mbbl.

Reserves NPV10 Growth by Category, 2020-2025

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NI 51-101 Table 2.1.1

The following table discloses, in the aggregate, the Corporation's gross and net proved and probable reserves, estimated using forecast prices and costs, by product type. "Forecast prices and costs" means future prices and costs in the Sproule Report that are generally accepted as being a reasonable outlook of the future or fixed or currently determinable future prices or costs to which the Corporation is bound.

Production Data Aligned with ASC 51-324 Reporting Standards: The production figures are based on Prospera Energy Inc.'s standardized reporting definitions in alignment with ASC 51-324. Gross production represents the Company's working interest before royalty deductions, while net production accounts for royalties. Prospera reports gross production at the first point of sale, excluding volumes used in operations and partner production from those in arrears. Readers are advised to refer to this reporting framework for accurate interpretation of production data.

After Tax Results

As mandated by NI 51-101, after tax results are shown in the various tables of the Sproule Report. After-tax calculations at the company level incorporated tax legislation and tax pool details for the Company, complying with the guidelines and philosophy of NI 51-101 in all material aspects. All future capital cost estimates herein have been categorized by tax pool definitions and used to supplement the year-end tax pool information provided by the Company. The year-end tax pool, as provided by the Company, is summarized below:

Canadian Oil and Gas Property Expense (COGPE) $16.3M Canadian Development Expense (CDE) $16.2M Non-Capital Losses (100%) $2.3M

Remaining Reserves

Remaining reserves of oil and gas have been determined as of December 31, 2025. A summary of property gross and total company reserves follows:

Product Prices

An average consultant industry price forecast, effective December 31, 2025, was used for this evaluation, a copy of which is included in the Sproule Report. To estimate actual received prices, adjustments were made to crude oil and by-products prices for quality and transportation tariffs. Similarly, adjustments were made to gas prices for heating value and transportation. It is assumed that the adjustment factors and increments will remain constant throughout the forecasts. Revenue data provided by the Company was used to quantify price adjustments. If such data was unavailable, typical values for the area were used to estimate price adjustments. Risks of political and economic uncertainties could affect future results and could cause results to differ materially from those expressed in this evaluation.

Qualification

To prepare their evaluation, a technical presentation of properties was made by the Company to Sproule. Data required by them was sourced from the Company, industry references and regulatory bodies. Neither field inspection nor environmental review of these properties were conducted by Sproule, nor deemed necessary. Generally accepted engineering methods were employed to estimate reserves and forecast production. The Sproule Report follows the Practice Standards and Guidelines of the Association of Professional Engineers and Geoscientists of Alberta (APEGA) and adheres in all material aspects to the business practices, evaluation procedures, and reserve definitions contained within NI 51-101 and the COGEH.

Economic Results

Summarized as follows is the NPV of the Corporation's future net revenue attributable to the reserves categories previously tabulated, estimated using forecast prices and costs, before deducting future income tax expenses, and without discount and using discount rates of 5%, 10%, 15% and 20%. Future net revenue includes all resource income and is after capital investments, operating expenses, and royalties.

Future operating costs are based on historical data. Wherever unavailable, they were estimated from analogous operations in the vicinity of the properties. The inflation of capital and operating costs is assumed to be 2.0% per annum after 2025. Sproule has included cost estimates of well abandonment and reclamation for all existing wells, regardless of reserves assignment, and undeveloped locations assigned reserves. Estimates have been prepared based on historical costs and published guidance from provincial liability management or rating. It is understood that all abandonment and reclamation costs of wells and facilities have been accounted for by the Company.

Strategic Amendment to Senior Lending Facility

The Corporation announces a further amendment to its $11,000,000 promissory note, originally dated June 7, 2024, in collaboration with its principal lender. Following previous increases, an additional $1,039,465 has been added, bringing the total principal amount to $20,739,465. Additionally, the maturity date for the promissory note has been extended by three months, reflecting continued alignment between Prospera and its senior lender, which provides the Company with a defined window to advance discussions on a broader refinancing of its senior facility, allowing Prospera to optimize its capital structure. The note retains its original terms, including a 12% interest rate, with no other changes. The proceeds are earmarked specifically towards production-increasing capital projects. This amendment remains subject to acceptance by the TSX Venture Exchange.

Shares for Debt Update

Prospera announces an update to its previously announced shares-for-debt settlements originally disclosed on March 23^rd, 2026. The Company has entered into settlement agreements with a total of 39 arm's length vendors, representing an aggregate of $1,611,394.43 in outstanding trade payables, to be satisfied through the issuance of 45,011,398 common shares. The settlements are structured as follows:

Three vendors have collectively settled $12,157.51 through the issuance of 243,150 common shares at a deemed price of $0.050 per share. One vendor has settled $2,438.58 through the issuance of 60,000 common shares at a deemed price of $0.041 per share. Three vendors have collectively settled $242,877.12 through the issuance of 6,071,928 common shares at a deemed price of $0.040 per share. One vendor has settled $30,000.00 through the issuance of 810,000 common shares at a deemed price of $0.037 per share. Thirty-one vendors have collectively settled $1,323,921.22 through the issuance of 37,826,320 common shares at a deemed price of $0.035 per share.

All shares issued pursuant to the settlement are subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation. The transactions have been accepted by the TSX Venture Exchange.

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 is dedicated to optimizing recovery from legacy fields 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 the U.S. 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 its working interest after royalty deductions. These definitions align with ASC 51-324 to ensure consistency and transparency in reporting.

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