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The horizontal wells are basically development,
so you're probably talking about an eighteen to

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ninety percent CHATS success. The expectation
is that we're going to have soloware get

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dwing six studio undered barrels a day
for well that includes the risk of the

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ninety percent chats a success. We've
included the geology, We've included the Seisnick

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and we picked locations right next to
our tested oil to find the best locations

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duel so they have sixty seventy percent
chats of each adding unored barrels a d

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The Financial Survival Network now more than
ever, the Financial Survival Network, and

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welcome. This is Financial Survival Network. I'm your host, Kerry Lutz,

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and we are going to get an
update from one of my largest holdings,

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Prosperity Energy. We're going to find
out about the upcoming drill programming, what

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else is ahead. Samuel David CEO, George mcgarian, VP of Subsurface are

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here with me. Sam glad you're
back. So rough winter up your way,

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rough winter for for Prospera with the
weather and production issues. The winters

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are always harsh and Saskatchwan and especially
in the latter part of quarter too,

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on most part of quarter one.
Those four months we have scheduled all our

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Phase two development in the summer months. We've been steadily working towards to have

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the rig on site to drill,
and then the rig is also scheduled for

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the first first few weeks of August, both for the horizontals and the verticals

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for the light oil as well.
That's ten horizontals, eight verdicals. Just

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as we planned these summer months,
we've invaded a survey, acquiring the leases,

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constructing and getting license and permits to
construct. So every this week progressing,

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we have obtained the well license and
then wee scheduled as well, and

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all those services are coordinated. Just
to give you an example, a horizontal

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takes about one hundred different types of
services utilized and working consortium to do these

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kind of horizontal wealths. We are
drilling it to depleted reservoirs, so we

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have to be very careful on also
circulation. So all of those technical challenges

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we have piloted, and we have
addressed the technical risks and the economic side

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of it as well in coordinating the
services and getting the terms, party terms

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and all those kind of things.
The team has made steadily working and we're

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ready to go August first week after
the long weekend, because hey, if

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you drill in the long weekend,
it's double over time. Okay, so

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we're doing right after the long weekend, okay. And currently production, what

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are we looking at. We're looking
at about a thousand boies, but we

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still have about thirty thirty two fifty
cubes on just engines and rods and flushed

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by those kind of things, and
those are being coordinated so that that additional

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three hundred EOIs will be added here
in the betch few weeks. And as

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far as production come the end of
the year, weather permitting, what do

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you think will be at well,
We have taken the weather into consideration in

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our forecast, initial forecasts, and
that hasn't changed. George, it's great

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to have you on, great to
meet you. Understand, you've got banks

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and you've got thirty six years of
petroleum geology under your belt. A lot

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of the fields you've developed during this
time tell us eighteen Walsh, that's doable

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for the time period allotted. Yeah, no, no problem. I mean

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that the horizontal wells probably take about
a week to drill. That's ten weeks

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of drilling. He wanted to add
out, you know, one back to

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back to back the vertical wells,
he shouldn't. Shouldn't take that long mail

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build babe, or five days those
can be again, uh, drills back

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to back to back, and you
know that within a month you could have

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most of the wells drilled. We
have everything ready to build, all at

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the same time. So yeah,
the timeline is not an issue from it

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from the drilling perspecting all right,
and in your experience, and like we

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said, you've got vast experience.
What is the pro prospectivity of those wells?

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Look like the horizontal wells are basically
development, so you're probably talking about

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an eighteen to ninety percent chants of
success. The expectation is that we're going

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to have soloware got Dwayne sixty to
hundred barrels a day er well that includes

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the risk of lead to ninety percent
chants of success. They're going to bring

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on some bit production with a high
chance of success. Now. But yeah,

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the other wells of the verticals,
I wouldn't call them development. Maybe

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would call them outposts. I don't
know if that's the term that the investors

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would know about, but basically what
you're saying with an outposts that you're drilling

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right next to an established well.
We included the geology, we've included the

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seize nick and we picked locations right
next to our tested oil to find the

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best locations can drill so that they
have sixty seventy percent chants each adding huttered

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darrels a day, so we could
see quite a bit more and Sam.

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As far as bringing those wells into
production, are there any particular challenges there?

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What's the time frame once the wheel
is drilled, assuming it's successful,

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but just prior to that, those
that seismic that George referred to, those

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are all three D seismic. We
have three D size both both areas,

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and these locations were picked with three
D size and well control and it's very

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similar to the Actually, George was
pretty excited that these ones that we're going

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to drill looked a little bit better
than the wells that we proved, so

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we're excited about that. Now,
for the horizontals, we're drilling from existing

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least ten meters away from my existing
well, so it's a matter of tying

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into existing facility, so the horizontal
wells will come out a lot quicker within

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a few weeks of drilling, and
we'll do the completion with the landing the

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pump at the same time. We'll
tie it in and it's all pipeline to

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the facilities. So the horizontal production, we can see it quite rapidly.

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The medium light oil, it's a
new development area, so we have to

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acquire new lease, and we'll also
have to construct some of the things that

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are associated with the new lease.
We have to bring a new equipment,

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and we have sourced all of that
out the technical tea, the facility pipeline

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teams, as all the plants we're
proceeding with that that'll take a little a

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little bit more time, probably another
than a half because all those permits we

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have been working on it since the
sun started. So if I were bold

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to say by a quarter three,
we shouldn't have all of them all.

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Conceivably all eighteen wales could be online
by a quarter three, which is quite

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an accomplishment. There seems to be
confusion as to when the drill program was

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going to start. I knew there
are, Like you said, there's hundreds

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of moving parts to a program under
way. So if you're a few weeks

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early or a few weeks late.
It's not significant in so far as the

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weather goes, and still getting the
program done, is it. We were

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planning for July August, drill in
late July, in mid August, so

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maybe there was a confusion, uh
that it could be that instantly. There

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is a lot of have you I
moving especially for a small company for us,

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this is a big program as far
as we're consacked, were we're opped

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argot and all our teams would working
hard quickly, But there's always permits and

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weather and all that. But I'd
say we're opped argot. Yes. As

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far as finances go and the cash
flow, um I noticed, well,

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last year obviously had record cash flow
from operations. It was up multiples of

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where it was before. And latest
release indicates that you have more than enough

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cash on him to finance the program. Well, you never have more than

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more that we did. You know
in quarter one, as you recall,

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the winter was pretty harsh, so
you know the production was down. There

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was also the commodity press that has
been honest, it is getting a little

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better in the last few weeks we
noticed, but nevertheless, we're set to

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drill and finance these projects, especially
with the exercise of the warrants and sustained

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cash flow as well. All right, and George, So as far as

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the composition of the oil you were
you said there's medium and light to present,

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which was a surprise. Well,
the medium light is in the the

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Alberta Fairway. Uh, we're we're
pursuing the Hammy is obviously a Saskatchewan outset.

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The medium light will will darner a
better price than the heavy that we're

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producing in Saskatchewan. Also, the
medium light oil is uh, it's radical

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weals, ariz optal whatsoever, our
directional wealths, so they will be drilled

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quicker than ariz optical weals as well. So it'll be able to bring those

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medium light oil radical or slanted wells
a little bit quicker and cheaper as well

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in terms of capital outlay. We've
talked before that the company is actively seeking

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acquisition. Sam, Can you just
I realize there's a limit to how much

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information you can give us on that. Can you give us the broad outline

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of where you're at in that process
acquas you shouldn't. We plan and the

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core area to expand in the core
area is still in progress. It is

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back at forth and in terms of
discarding the exact pool that we want.

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And you know, the talk is
still there and we're proceeding towards the pools

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that we walked, not just all
the liabilities surrounding it, you know,

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which is when we wanted to get
at. But that conversation is in progress,

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all right. I realized that there's
a limit to what you can tell

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us about it. But it's good
to know that it's still alive and you're

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moving ahead. And so is there
anything else? What about the polymer flooding

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in the upgrading? Anything good?
It's there a good question. We're moving

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towards a pilot, we're getting ready
for application as well. That work for

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spament steadily progress as well, and
we also have chosen the type of polymer

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that we need as well, and
so we've been we're going with vendors at

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moving towards the application and a pilot
as we plat right. And what about

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the other the new technology that actually
takes heavy oil and turns it into better

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than WTI I hope, so that
is also proceeding as well, where you

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have moped into the experimental stage of
that. News is going to be coming

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out to the next week or so
where we're supplying our samples and the experiment

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it's going to commence and we should
be receiving an idle report of the experiment

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at the end of the year.
All right. So there's a lot happening.

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And like anything else there in the
normal ebb and flow of the companies,

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there's active periods and there's not so
active periods. Sometimes there's a lot

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of action taking place under the surface
and you don't see it, which obviously

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is what's been happening here with Prospera. So look, go over to prosperit

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Energy dot com. Sign up for
notifications so you'll get these news releases as

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they come. The ticker symbols in
the US g x r f F.

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In Canada, of course, it's
Pei, Sam, George. Thanks for

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coming on and we will be following
up with you in the months ahead.

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Thank you. Carry yeah, i'd
like to see that, okay, thank

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you. The Financial Survival Network