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I'll just kind of go through a
couple of the highlights we add in the

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press release that was released yesterday.
You mentioned the PDP reserves the increased five

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hundred and eight percent. So last
year, twenty twenty two's reserves were four

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point four PDP value of twenty seven
million, this year at a discover right

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of ten percent, and so that's
a direct reflection of the twenty twenty three

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development program that the team execute them
your SAP, and what that really means

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is that it identifies our opens up
a variety of different conventional financing options for

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prosper and non delude of financing options, asset based debt and so on.

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And what it allows us to do
is get away from some of the higher

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red financing so we've done historically,
take those that will consolidate our balance sheet

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and ultimately fund the upcoming twenty twenty
four development program. The Financial Survival Network

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now more than ever, the Financial
Survival Network. Welcome. This is Financial

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Survival Network. I'm your host,
Carrie Lutz, and we were about to

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get a much requested update from CEO
Samuel David and CFO Cress Lutkey of Prospera

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Energy yesterday, Sam, you released
your latest reserve report for twenty twenty three,

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and I kind of thought there was
a typo I was looking at it.

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It said five hundred and eight percent
increase in reserve value PDP, and

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I mean, I've never seen numbers
going up that high before. That's right,

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Kerrie Prospero team is very proud and
pleased to convey that appreciation of the

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asset value. And really I feel
we are just scratching the surface on the

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asset the real asset value of the
entire reservoir we have and the oil in

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place, and we're just being to
tap into the reserves. We're just accessing

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the reserves with the horizontals that we
just drilled. There's a large upside to

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this asset value. For example,
we haven't really started exploiting one of our

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largest oil in place property and we're
just commencing that. The reason that hasn't

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commenced so far is because we've been
doing a lot of due diligence, studying

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all the technical technical parameters, historical
performance. It is pressure depleted and we're

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finding the most effective ways to apply
that and we'll be quilting that this year.

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So you can see even the largest
oil and place property is not reflected

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in this current appreciation of eight percent
appreciation in approve and developed value. Chris,

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this reserve report really kind of a
game changer in terms of how the

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company moves ahead, how it raises
funds. You just tell us explain what

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the difference is now, Yeah,
certainly, Carrie. I'll just kind of

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go through a couple of the highlights
we adding the press release that was released

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yesterday, you mentioned the PDP reserves
increased five hundred and eight percent. So

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last year, twenty twenty two's reserves
were four point four PDP value of twenty

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seven million. This year at a
discover right of ten percent, and so

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that's a direct reflection of the twenty
twenty three development program that the team executed

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them out and what that really means
that it identifies or opens up a variety

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of different conventional financing options for prosper
and non delude of financing options, asset

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based debt and so on. And
what it allows us to do is get

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away from some of the higher refinancings
that we've done historically, take those out,

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consolidate our balance sheet, and ultimately
fund the upcoming twenty twenty four development

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program from an np the standpoint,
now, what do you reckon the NPV

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of the reserves? It is all
of them, P two P and PDP.

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Well, the two P reserves value
that was published yesterday as well as

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a total three million. That's the
corporate number, and that's a proved plus

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probable number. It increased sixty one
million year over year, and that's really

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a reflection of an increase in the
undeveloped reserves value along with the twenty twenty

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three development program. So pretty much
what you're telling me then, is that

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the market cap of the company,
which currently look at my latest number is

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clus thirty six million. It's almost
triple. Your MPV is almost triple the

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market cap, that's right. But
we calculate the the two PE reserve value

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over the total amount of shares the
air outstanding currently we get approximately thirty one

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cents, which is considerably higher than
where we're at currently. Total proven number

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is about twenty one cents, but
both were higher. Sam Basically, looking

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at this kind of I saw a
current recovery rate of nine percent, but

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the release seems to imply that it
could go much higher. Oh yeah,

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definitely there's ample amount of room to
be recovered, ample amount of reserves to

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be recovered. That nine percent is
an overall average between three properties. As

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I mentioned, the largest oil in
place property and the largest oil in place

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has approximately two hundred and ninety million
barrels in place. That property has only

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recovery. We have only recovered about
six percent of the oil of place.

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There's plenty of remaining reserves to be
recovered. This year, we got a

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drill program. It's going to take
place, and you've gotten a much earlier

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start to the process, aven't you. Definitely? Definitely Yeah. Last year,

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you know, everything got delayed to
actually, you know, for us

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to work through. That's the first
time we were executing the large development program

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for Prospera, and it stretched it
into the winter till end of December,

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and a lot of that production and
corresponding revenue we stop reflected in the balance

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sheet. It will be reflected in
this year's balance sheet. But this year,

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yes, we have paused everything and
preparing for an early start right after

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the breakup to commenced, really so
we could see that those new wells hit

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the income statement before the end of
the year. Then yes, you know,

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since we were doing a much earlier
drilling in the summer. The results

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from the drilling will be reflected in
the year end statement. Right, So

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cash flow standpoint Chris, company's position
to finance this program adequately in addition to

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perhaps taking on new financing. Yeah, that's right. Carry The additional financing

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that the reserves will provide, combined
with the company's cash flow, will support

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the twenty twenty four top of the
requirements allow us to achieve the year end

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targets have been published earlier this year. Sam, the reserve life is now

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thirty years, but we know in
the market that once you go past seven

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ten years, you don't really get
any respect for that to you. Well,

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you know, there's longevity in these
as it were, and we could

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have a steady stream of supply of
oil and a cash flow for this company.

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Right. So obviously to get to
realize this additional production, you're going

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to have to do a substantial number
of infrastructure improvements. We already discussed technical

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advancements that are going to be kicking
in as the process goes along. It's

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a big project, isn't it.
These properties have adequate infrastructure in place.

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It's a little bit outdated, and
we've been attending to that on an ongoing

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basis, and actually we have a
turnaround plant for this summer. The previous

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year. Wintery conditions affected as quite
a bit last year, but this year

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we were able to bounce back and
resume production and appreciating production from the cold

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weather. So already there's improvements in
the infrastructure, and there'll be additional improvements

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to infrastructure this summer. And also
because there's existing infrastructure, all the drilling

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that we do, all the optimization
could be brought online fairly quickly on a

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quick turnaround and easier permitting because it's
just additional production and the same project,

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the same field, right same,
Yeah, these are all multi well padlese

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and we just say yes, it's
not the same existing infrastructure curio, I

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don't go out that that that helps
reduce the capital will lay considerably as well.

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We're adding these new wells so we
get the production right away, but

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we're not adding to spend any money
on pipeline infrastructure or anything along those lines.

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So we're drilling new wells. We're
adding them at roughly about six dollars

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a barrel of capital expenditure and it's
not plagued by additial infrastructure costs that would

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ultimately bring that number up. Now
that's in Saskatchewan and the heavy oil property,

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the medium oil development, it does
require some infrastructure, concentrated infrastructure to

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production. So Chris, So the
decline in production that happens in the winter,

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it is not an isolated event.
I mean, I see the chat

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rooms go a little that could overreact
to the winter decline. But this isn't

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just a prospera phenomena. This is
industry in this part of the world,

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right Cort. Across the board,
we see our peers impacted in a similar

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way, big and small companies across
the board. I mean, operating a

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negative sixty degree weather is tough.
But we you know, we as say

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I'm talked about, there's a lot
of infrastructure upgrades and things like that,

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and preparedness that happens. There's always
events that are on plopped. You're expanding

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your team right now, I understand, adding more people and this can also

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make an impact. And obviously it
helped keep the oil flowing during the winter.

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Two well, at minus c two
celsius, not too many things move.

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However, However, we can that's
right, yeah, give other people.

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Well, we have added experienced staff
to both the operation and production engineering.

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We also, I think you've mentioned
before, we have a VP of

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experienced VPF operation as well, so
we have added significant experienced individuals to accommodate

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the development that we have planned.
So the money is there to do all

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this, Chris, and the team
is there to do it all, Sam,

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what do you think end of the
year. I mean I saw in

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the release it said you got a
target of five thousand boe per day.

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Now that's right. It's a fairly
ambitious target, but we feel it's it's

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attainable and prosper has come a long
way since the restructured in restructuring that happened

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in twenty twenty one onward. But
Prospero is a different company now and there's

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a cohesive team management team, an
operation team, and we have executed and

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demonstrated the reaccessing undrained reserves, and
we have retired very good wells all along

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the way, and we're reducing our
operating expansion and liability as at retiremental liability

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as well, and we also have
proved up our medium oilplay. So here

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on word, it's mostly execution and
development to appreciate production. Also we have

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we'll be adding a key strategic acquisition
to diversify your product from our heavy old

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dependency, and these are all when
we add up all of this, we

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feel and that ambitious target is attainable. All right, well, I think

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really happy to get this update.
As you know, I'm a shareholder as

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well as a prespera being a sponsor
of the show, and it's great to

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see it moving ahead. Hopefully the
market will will give you some respect in

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the near term once this information gets
out there. It seems like it's a

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good prospect. We will keep on
doing what we're doing and we'll let rest

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take care of it. Stuff.
Thank you, Kerry. All right,

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thank you, Chris Sam. It's
always great to talk with you. Go

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over to the company's website prespar Energy
dot com, SiGe up for notifications the

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ticker symbols in the US g x
r FF and of course in Canada Pei

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and he will be going for follow
ups in the coming months and hopefully everything's

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going to work out awesome. Thank
you. Thanks Garry. The Financial Survival Network