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Twenty twenty two, MPB was valued
at seventy two million dollars. Since then,

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we're adding nearly thousand bus to day
ten horizontals and Brooks development. It

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should have some reasonably significant impact on
the reserve evaluation of the company and the

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NPB of the two p MPB of
the company. The Financial Survival Network now

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more than network, the Financial Survival
Network. Welcome. This is Financial Survival

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Network. I'm your host, Kerrie
Lutz. And hey, we're in the

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first week of December. We're getting
an update from Prospera, you know,

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one of my largest holdings websites prosper
Energy dot com, the symbols and the

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US g xr FF and in Canada
of course Pei. Right now with me

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is CEO Samuel David and CFO Chris
Ludkey. Gentlemen, I know it's snowing

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on this Friday, but you guys
from our neighbors up north, nothing you're

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not used to. Actually, it's
uh. First of all, I carry

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already doing. First of all,
I think it's nice having some snowflakes on

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the ground. It gives us that
Christmas feeling in spirit. It's its this

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this season, so so and last
winter though, we didn't get that Christmas

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feeling because effectively the weather was so
bad and due to circumstances you weren't prepared

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for, you know, field shut
down. But this winter is going to

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be a different story, isn't it. It keeps us on our toes all

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the time, that's for sure.
That's Canadian weather, Calgary weather for you.

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So, so Sam, can you
give us a production update as of

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now where we stand. Certainly,
as you know, we're continue to do

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our horizontal transformation and the rig is
drilling I think it's drilling the eighth horizontal

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right now. And while we're drilling, as I mentioned before, we shut

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off all the adjacent production and because
it's a very poorest permeable sand, we

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actually shut down the entire pool for
production. So there's about four hundred somewhat

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barrels that's shut in for the drilling, and also the new horizontals that we

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drilled also has to be shut in
for the adjacent adjacent production. Adjacent horizontals

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that we're drilled is also shut in
and they're all being to come on as

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we're getting to the near end of
our drilling in that location. So there's

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about closer to six hundred seven hundred
barrels per day bueis per day shut in.

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Our production currently is about thousand bue's
mostly barrels. It's thousand barrels a

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day, and we have all six
hundred hundred barrels shut in. We're also

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bringing on Brooks at the moment.
As a matter of fact, as we

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speak, we've finished our first well. We have prifted did our as a

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job and it looks as expected might
exceed their expectation. We're also tying in

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another well in Brooks as well,
so all that leads to that we are

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getting more and more confident. We
exit as anticipated at the production rate of

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eighteen hundred bu week a day and
could theoretically be higher as far as the

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flow rates. So these new horizontal
wells, last time we spoke, you

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mentioned that it exceeded your initial forecast. Is that still holding true? Pleasantly,

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The pumps are operating at its lowest
speed and efficiency because we don't want

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to exert a huge draw on the
reservoir and it's been holding the water cut

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mostly it's a ninety nine percent oil
cut, and now we're beinging to optimize

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more. The indication is we are
draining undrained reserves that were tapped in by

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the ridicule wells, and that gives
the fair amount of confident on the oil

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in place and a significant reserve add
to the year end reserve evaluation. Consequently,

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the NPV value of the company twenty
twenty two in PB was valued at

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seventy two million dollars. Since then
we're adding nearly thousand bus a day,

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ten horizontals and brooks development. It
should have some reasonably significant impact on the

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reserve evaluation of the company and the
NPB of the two p mpve of the

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county. If my memory sertas make
correct, you're getting over one hundred barrels

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per horizontal well that you're drilling.
Is that number I showed in the chart

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there anything over around five hundred meters
of latter pay we were getting hundred,

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one hundred and ten barrels per day
well. It makes my limited potential for

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math a lot easier because however many
wells you eventually drill, I just multiplied

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times one hundred, and I get
your expected to flow rate there, right.

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I certainly hope to maintain that about
those results. So press as far

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as Pei's financials go before Zam mentioned
or you mentioned break even of somewhere around

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five hundred barrels per day. You're
keeping a lid on cost. Is that

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pretty consistent? Yeah, certainly carry
and you know with the press have falling

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off a little bit since I think
we were lost on the show. You

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know, we see break even maybe
around six hundred barrels a day gross this

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ten seconds with seventy seventy five dollars
WTI and the heavy delaight oil differential where

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it sits currently. However, with
the additional volume coming online through the end

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of the year, we're obviously seeing
our fixed costs reduced on a per barrel

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basis, and so that number is
coming down with the additional barrels that we're

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producing. So happy to see the
increases here, which means your margin's going

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up and your netback goes up.
Right, Yeah, that's correct, Yeah,

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all right. And as far as
the drill program going ahead, for

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however many wills eventually get drilled,
company is going to be able to pay

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for this, that's right, Yeah, that's right. So we've we're finance

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to be able to execute the rest
of the horizontal program we recently announced some

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news earlier on where we talked about
debt and gore financing roughly about three and

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a half million dollars. All of
those proceeds are going directly into the ground

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to be able to support the drilling
program. All right, So from last

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year twenty twenty two to the end
of twenty twenty three, can you just

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contrast the financial position of the company
now as opposed to a year ago.

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Yeah, certainly. I mean,
I think we've seen a lot of our

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legacy debt being paid off, so
we've seen reductions across the board with some

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of the payables that were inherent when
there was a change over from the old

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management team, we're seeing we've seen
the end of some of those payment plans.

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So we made our final payments in
November for some of the twenty four

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month payment plans that we worked on
with vendors. But I think overall,

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Kerry, the company is poised really
to start to move ahead based on these

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incremental barrels and the additional cost flow
that the debt's associated with it. That's

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always good news. So, Sam, we last spoke, you mentioned that

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cost drilling cost per Well, we're
coming in fifteen percent below your expectations.

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Is that still running consistent with that
in a perudit basis, because, as

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I mentioned, the lateral five hundred
meters plus as giving us ip in one

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hundred plus barrels per day. So
the next group of wells that we have

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commenced, we're targeting around six hundred
meters and seven hundred meters of lateral pay.

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Technically we can extendard laterals to those
length and the first one we drilled,

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I think it was five hundred and
forty or something plus the second one

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now we're in a six hundred meters
plus. So the costs is corresponding to

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the time. But you know,
the savings has been under budget so far.

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Yes, borrowing from any technical challenge
that we might incur, which which

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which always happens, because it's not
just you know, cheese that you're cutting

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through. It's there's heterogeneity in the
reservoir and there's different things to be encounter

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and that's fine. You know,
I would say it's an efficient operation,

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right, So effectively, based on
the numbers you mentioned last time, it's

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almost as if every seventh well you
drill is for free. Well, I

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suppose you can look at it that
way. Yes, right, so hey,

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acquisitions, we've heard mention of them. I realize you can't get too

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deeply in the weeds here for obvious
reasons, but they're moving ahead that part

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of our business strategy. I'm getting
more and more excited about it because as

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we have gone into our development program
and then our horizontal transformation, we've done

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a number of wells now and now
you could say it's repeatability and the same

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thing with the light oil development.
We have encountered pay initial production tests as

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anticipated, so that horizontal development plan
is proceeding according to the plan, and

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now we are able to focus on
the other development to appreciate prosper through acquisitions.

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So now I get to spend a
little bit more time in accelerating these

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acquisitions. There's one other point that
I must add that allows me to do

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this. We hired a very experienced
individual that has a lot of working knowledge

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in this area as VP of Operations, John McMahon, and this allows me

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to free myself a little bit from
our hands on operation to focus on an

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acquisition. As as a result,
we have about five acquisitions in play right

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now. The corporate strategy that we
have that we try to hit properties that

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are in distress and it's in primary
depletion and it hasn't been totally optimized.

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And we look for light oil to
complement our heavy oil dependency, and there's

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a number of them. They're all
moving ahead, and I'm really hoping and

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pushing to complete all of that for
quarter one. They're they're going into OI

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and it's because now now I have
some uh, there's some time I can

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focus on this and things are moving
ahead, and I think I don't know

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if I'd be brave enough to mention, but you know, there's US acquisitions

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involved because there if we see some
synergy. So this is the first time

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I'm alluding to something like that.
It's not to change the focus, but

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the US audience are very aware of
Prospero Energy and we've been we've been getting

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fair line interest in Prospera to combine
with Prospera. So there's a number of

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things that's moving ahead carry and I
think I can expand a little bit more

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in that latter part of January.
Excellent excellent news. Well, I guess

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there's two places to drill for boil. One is in the fields and the

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others in the financial markets. And
if you can get a good deal on

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it, why not. So,
Chris, these acquisitions that Sam's alluding to,

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they would be accreative in nature.
They wouldn't be diluted with it.

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Oh no, certainly a creative.
I mean what we're looking at here is

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each and every one of the acquisitions
that Sam mentioned are roughly about ten thousand

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per flowing barrel to be able to
add to Prospera. And you know,

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some of the peers that we spire
to look like and even there, you

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know, in the future here all
very valued in the thirty to forty thousand

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dollars per fol flowing barrel. So
you can see the you know, three

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or four times upside just just on
that basic math. So really, I

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would almost liken the Prospera to the
potential of a roll up to be able

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to take all these undervalued barrels,
bring them into Prospera, and then revalue

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them at a higher flowing barrels.
Correct. Yeah, Yeah, And that's

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that's what our team is set up
to be able to do, is to

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be able to take these distressed assets, these undervalued assets, and be able

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to recognize the true value behind them. But you know, that's not the

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only way we'd like to appreciate just
and it doesn't make sense, you know,

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just revalue them. But we're not
going to just do that. We

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are looking at these properties because we
know there's reserves and we can optimize them.

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So we will supplement and support it
with whatever barrels it came. We

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will optimize that barrels one to one
or more, you know, and then

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we'll get into reservoir mannauncement. So
I think the appreciation and production will foster

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the reevaluation, right, Yeah,
So it's not just a question of taking

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the asset putting it on the books. It's adding value to it at the

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very same time by increasing your flow
rate, increasing recoveries, and cutting costs

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as well. I would presume producing
our cost environmental footprint, you know,

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applying latest technology and some good reservoir
management that most companies are most reservoir has

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not been applied to all Right,
Well, I think we got a really

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good insight into what's going on with
the company. Now it's moving forward.

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You know, this time of year, things kind of feel like they grind

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to a halt or they slow down. But it sounds like in Prospero's case,

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that's hardly the case. So again, go to the website, sign

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00:13:50,919 --> 00:13:56,679
up for notifications prosperit Energy dot com, ticker symbols us g x r FF

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and in Canada of course Pei.
Gentlemen, best wishes for the holiday season.

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We'll touch base after the first of
the year. Thanks so much,

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thank you, and Prospera wishes all
the shareholders and stakeholders and everyone that's interested

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in Prospera a very very safe merry
Christmas and happy holidays. All right,

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thank you, all right, take
care, Thank you, Gerrit. We'll

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talk to you soon. The Financial
Survival Network