Western Canada-based Prospera Energy Inc., an oil and gas company, has reported a recovery in its Q3 2023 production and financial results, following previous declines due to adverse weather conditions. The company's gross peak rates exceeded 770 barrels of oil equivalent per day (boe/d), with an additional 350 boe/d set aside for further optimization.
Prospera initiated phase 2 of its development drilling, leading to a temporary shutdown of approximately 120 boe/d production to ensure smoother operations. This phase marks a significant transition from vertical to horizontal wells, aiming to exploit substantial reserves within Saskatchewan's heavy oil fields.
The company's Q3 2023 financials displayed a positive operating income of $1,101,827, showing a substantial increase from $783,084 in Q3 2022. The turnaround was further underscored by a net income of $71,011 in Q3 2023, compared to a net loss of $779,438 in the preceding quarter.
Despite average sales prices decreasing slightly to $82.15/boe in the quarter from $85.09/boe in Q3 2022, and operating expenses rising to $41.45/boe for Q3 2023 from $36.24/boe in the same period last year, Prospera continues to strengthen its balance sheet through financial restructuring.
This restructuring includes the completion of the first closing of private placement debt financing that came with an equity bonus. This move successfully raised C$580,000, which will be used as development capital for the company's ongoing operations.
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