The horizontal wells are basically development, so you're probably talking about an eighteen to
ninety percent CHATS success. The expectation is that we're going to have soloware get
dwing six studio undered barrels a day for well that includes the risk of the
ninety percent chats a success. We've included the geology, We've included the Seisnick
and we picked locations right next to our tested oil to find the best locations
duel so they have sixty seventy percent chats of each adding unored barrels a d
The Financial Survival Network now more than ever, the Financial Survival Network, and
welcome. This is Financial Survival Network. I'm your host, Kerry Lutz,
and we are going to get an update from one of my largest holdings,
Prosperity Energy. We're going to find out about the upcoming drill programming, what
else is ahead. Samuel David CEO, George mcgarian, VP of Subsurface are
here with me. Sam glad you're back. So rough winter up your way,
rough winter for for Prospera with the weather and production issues. The winters
are always harsh and Saskatchwan and especially in the latter part of quarter too,
on most part of quarter one. Those four months we have scheduled all our
Phase two development in the summer months. We've been steadily working towards to have
the rig on site to drill, and then the rig is also scheduled for
the first first few weeks of August, both for the horizontals and the verticals
for the light oil as well. That's ten horizontals, eight verdicals. Just
as we planned these summer months, we've invaded a survey, acquiring the leases,
constructing and getting license and permits to construct. So every this week progressing,
we have obtained the well license and then wee scheduled as well, and
all those services are coordinated. Just to give you an example, a horizontal
takes about one hundred different types of services utilized and working consortium to do these
kind of horizontal wealths. We are drilling it to depleted reservoirs, so we
have to be very careful on also circulation. So all of those technical challenges
we have piloted, and we have addressed the technical risks and the economic side
of it as well in coordinating the services and getting the terms, party terms
and all those kind of things. The team has made steadily working and we're
ready to go August first week after the long weekend, because hey, if
you drill in the long weekend, it's double over time. Okay, so
we're doing right after the long weekend, okay. And currently production, what
are we looking at. We're looking at about a thousand boies, but we
still have about thirty thirty two fifty cubes on just engines and rods and flushed
by those kind of things, and those are being coordinated so that that additional
three hundred EOIs will be added here in the betch few weeks. And as
far as production come the end of the year, weather permitting, what do
you think will be at well, We have taken the weather into consideration in
our forecast, initial forecasts, and that hasn't changed. George, it's great
to have you on, great to meet you. Understand, you've got banks
and you've got thirty six years of petroleum geology under your belt. A lot
of the fields you've developed during this time tell us eighteen Walsh, that's doable
for the time period allotted. Yeah, no, no problem. I mean
that the horizontal wells probably take about a week to drill. That's ten weeks
of drilling. He wanted to add out, you know, one back to
back to back the vertical wells, he shouldn't. Shouldn't take that long mail
build babe, or five days those can be again, uh, drills back
to back to back, and you know that within a month you could have
most of the wells drilled. We have everything ready to build, all at
the same time. So yeah, the timeline is not an issue from it
from the drilling perspecting all right, and in your experience, and like we
said, you've got vast experience. What is the pro prospectivity of those wells?
Look like the horizontal wells are basically development, so you're probably talking about
an eighteen to ninety percent chants of success. The expectation is that we're going
to have soloware got Dwayne sixty to hundred barrels a day er well that includes
the risk of lead to ninety percent chants of success. They're going to bring
on some bit production with a high chance of success. Now. But yeah,
the other wells of the verticals, I wouldn't call them development. Maybe
would call them outposts. I don't know if that's the term that the investors
would know about, but basically what you're saying with an outposts that you're drilling
right next to an established well. We included the geology, we've included the
seize nick and we picked locations right next to our tested oil to find the
best locations can drill so that they have sixty seventy percent chants each adding huttered
darrels a day, so we could see quite a bit more and Sam.
As far as bringing those wells into production, are there any particular challenges there?
What's the time frame once the wheel is drilled, assuming it's successful,
but just prior to that, those that seismic that George referred to, those
are all three D seismic. We have three D size both both areas,
and these locations were picked with three D size and well control and it's very
similar to the Actually, George was pretty excited that these ones that we're going
to drill looked a little bit better than the wells that we proved, so
we're excited about that. Now, for the horizontals, we're drilling from existing
least ten meters away from my existing well, so it's a matter of tying
into existing facility, so the horizontal wells will come out a lot quicker within
a few weeks of drilling, and we'll do the completion with the landing the
pump at the same time. We'll tie it in and it's all pipeline to
the facilities. So the horizontal production, we can see it quite rapidly.
The medium light oil, it's a new development area, so we have to
acquire new lease, and we'll also have to construct some of the things that
are associated with the new lease. We have to bring a new equipment,
and we have sourced all of that out the technical tea, the facility pipeline
teams, as all the plants we're proceeding with that that'll take a little a
little bit more time, probably another than a half because all those permits we
have been working on it since the sun started. So if I were bold
to say by a quarter three, we shouldn't have all of them all.
Conceivably all eighteen wales could be online by a quarter three, which is quite
an accomplishment. There seems to be confusion as to when the drill program was
going to start. I knew there are, Like you said, there's hundreds
of moving parts to a program under way. So if you're a few weeks
early or a few weeks late. It's not significant in so far as the
weather goes, and still getting the program done, is it. We were
planning for July August, drill in late July, in mid August, so
maybe there was a confusion, uh that it could be that instantly. There
is a lot of have you I moving especially for a small company for us,
this is a big program as far as we're consacked, were we're opped
argot and all our teams would working hard quickly, But there's always permits and
weather and all that. But I'd say we're opped argot. Yes. As
far as finances go and the cash flow, um I noticed, well,
last year obviously had record cash flow from operations. It was up multiples of
where it was before. And latest release indicates that you have more than enough
cash on him to finance the program. Well, you never have more than
more that we did. You know in quarter one, as you recall,
the winter was pretty harsh, so you know the production was down. There
was also the commodity press that has been honest, it is getting a little
better in the last few weeks we noticed, but nevertheless, we're set to
drill and finance these projects, especially with the exercise of the warrants and sustained
cash flow as well. All right, and George, So as far as
the composition of the oil you were you said there's medium and light to present,
which was a surprise. Well, the medium light is in the the
Alberta Fairway. Uh, we're we're pursuing the Hammy is obviously a Saskatchewan outset.
The medium light will will darner a better price than the heavy that we're
producing in Saskatchewan. Also, the medium light oil is uh, it's radical
weals, ariz optal whatsoever, our directional wealths, so they will be drilled
quicker than ariz optical weals as well. So it'll be able to bring those
medium light oil radical or slanted wells a little bit quicker and cheaper as well
in terms of capital outlay. We've talked before that the company is actively seeking
acquisition. Sam, Can you just I realize there's a limit to how much
information you can give us on that. Can you give us the broad outline
of where you're at in that process acquas you shouldn't. We plan and the
core area to expand in the core area is still in progress. It is
back at forth and in terms of discarding the exact pool that we want.
And you know, the talk is still there and we're proceeding towards the pools
that we walked, not just all the liabilities surrounding it, you know,
which is when we wanted to get at. But that conversation is in progress,
all right. I realized that there's a limit to what you can tell
us about it. But it's good to know that it's still alive and you're
moving ahead. And so is there anything else? What about the polymer flooding
in the upgrading? Anything good? It's there a good question. We're moving
towards a pilot, we're getting ready for application as well. That work for
spament steadily progress as well, and we also have chosen the type of polymer
that we need as well, and so we've been we're going with vendors at
moving towards the application and a pilot as we plat right. And what about
the other the new technology that actually takes heavy oil and turns it into better
than WTI I hope, so that is also proceeding as well, where you
have moped into the experimental stage of that. News is going to be coming
out to the next week or so where we're supplying our samples and the experiment
it's going to commence and we should be receiving an idle report of the experiment
at the end of the year. All right. So there's a lot happening.
And like anything else there in the normal ebb and flow of the companies,
there's active periods and there's not so active periods. Sometimes there's a lot
of action taking place under the surface and you don't see it, which obviously
is what's been happening here with Prospera. So look, go over to prosperit
Energy dot com. Sign up for notifications so you'll get these news releases as
they come. The ticker symbols in the US g x r f F.
In Canada, of course, it's Pei, Sam, George. Thanks for
coming on and we will be following up with you in the months ahead.
Thank you. Carry yeah, i'd like to see that, okay, thank
you. The Financial Survival Network