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We're getting average around eighty five dollars
Canadian and our op cost has been every

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year we've been releasing. It was, like I said, it was sixty

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dollars a barrow when we took sixty
plus and we got it down to thirty

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eight. Now we're getting down to
thirty three. And these are additional wells

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that's contributing to the fixed costs,
so it's even lowering the costs. So

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our netback is anywhere forty fifty dollars. The Financial Survival Network now more than

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ever, the Financial Survival Network,
And welcome. This is Financial Survival Network.

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I'm your host, Carrie Lutz,
and they've gotten a lot of requests

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from you out there. Please please
please give us an update on Prospero Energy.

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Well, we're going to do better
than that. We're going to talk

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to the CEO, Samuel David.
We're going to give you an update on

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the drill program, the success to
date five for five wells, increased production.

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It's really a story of a turnaround
that's coming to fruition with increased production

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and the higher profits. Right around
the corner, Saam, It's great to

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see you again. Hey, So
we're doing the horizontal wells. You've drilled

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five of them, you're five for
five. What are the results tangibly,

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What can we look forward to in
terms of increased production. Thank you for

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reaching out for an update, and
Prosperus is happy to convey what we have

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encountered. As you mentioned, we
have drilled five horizontals and infield drilling based

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on geological delineation, well control and
seismic delineation, and therefore the chance of

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success of geological finding the reservoir is
high. You know, the only a

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risk is mechanical because this is infill
low risk drilling, and that we tweaked

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it by drilling couple of pilot wells
prior to embarking on this development program.

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That we have the drilled five wells. So as for all this tweaking,

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these wells encountered pay structure and oil
as we expected, and also we came

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in under budget by about fifteen percent, and I think we can even tweak

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that a little bit more as we
extend the drilling. I'm going to share

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a screen and show you the results
that we have in the first few months

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of productions. So here's the type
curve that we used before embarking on the

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development program for economics. And here
are the results that we have encountered.

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The production initial ips in the first
two months, we have two months of

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steady production effected was going up.
And also there's a lot of room for

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optimization on these wells because they're being
held back. There's still twenty five joints

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of fluid and the pump is just
operating at a very low efficiency because we

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don't want to exert high high draw
do on on the reservoir. On the

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heavy oil, with the heavier oil, with the higher viscosity, it is

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important that you do not exert high
drawed on on the reservoir. If you

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do that, it's going to finger
the water through the oil and you'll be

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getting more water and then the oil. As you can see, we're drawing

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these down at a very very low
efficiency, and yet we're getting some really

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good rates, exceeding our time curve
expectations right see, producing more oil than

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you expected. But obviously, from
what you're saying, Sam, this is

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a very delicate operation. You don't
just march in there and start drilling wells

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without knowing what you're doing. And
this reservoir is very porous and permeable.

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There's a lot of well control that
we have. So we have placed the

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technical team and the drilling team.
They have worked together very well and placing

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the well where we set out to
do and then pass, encounter pay and

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it is delivering at the initial stages, exceeding our expectations. Originally, the

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plan called for ten wells to be
drilled, and now you're upping that right.

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Let me show you. Because of
the results we have encountered and the

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collaboration that we have with our services
that we were working with, especially Lasso

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Drilling Company, we have decided to
extend our drilling program and continue drilling it

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because we have our inventory of horizontals
to drill and this whole field is being

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transformed. Let me show you.
Let me show you that I think a

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picture success thousand words. Okay,
this is one of the pools that we're

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drilling. And when you're drilling these
wells, these horizontals, we have to

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shut in a lot of the adjacent
production so that we don't encounter drilling issues

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by the way of loss of mud, because if there's another well that's drying,

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we're drilling here and we're pumping mud
it will fly over to. Especially

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in this premium porest Premiere reservoir.
Most of the field is shut in prior

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to two or three weeks prior to
we start drilling, so the current production

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is all there. We're attaining the
results. As I showed you, the

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last five wells that we drilled added
an average one hundred barrels a day each

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well. At initial stages. We
expected decline later on, but it is

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exceeding our expectations right now. So
based on this, we're commencing drilling on

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these well Actually we're going to commence
drilling on this location and these wells.

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Strategically we picked it out to set
up other horizontals going further. So then

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we have additional horizontals and you can
see the whole reservoir is spaced and strategy

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clean placed to optimize recovery, all
recovery, not just a certain spot.

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And with horizontals, you're reaching out
and accessing additional pay is supposed to just

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one vertical well like this, it
only recovers around here. With these horizontals,

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we're accessing the entire reservoir. It
will deliver very nice, steady volumes

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over time. And then if you
notice there's a color scheme in here.

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The red is the ones we're going
to drill right now, and then we're

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going to follow up with other wells. The blue ones are also we're going

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to drill. The blue ones are
going to be converted to injectors. You

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know, we will start out as
a producer and it will be converted to

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injector so within the next year when
the decline starts to come down, we

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have already started in the reservoir management
of providing energy and support, and that

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will give us a better sweep efficiency
and keep sweeping that oil to the producer

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and at lower the decline. That
means the company will have steady stream up

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production, translate the cash flow.
And you've got to feel good about this

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because this field and what you're doing
now is the reason you took on the

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whole mess in the first place,
right exactly. Not only when we drill

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all of these we're abandoning out of
these ridical lows that is there. So

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we're reducing the environmental footprint and the
associated surface lease costs, liability, and

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the books or retirement obligation. It
also lowers the liability and it leads to

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a robust balance sheet r So basically
there's a cleanup on Aisle seven. Here.

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You're taking what was really not positive
environment there, you're cleaning it up,

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helping the environment, and you're producing
energy barrels of oil which will directly

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feed the bottom line and the plan
to maintain low decline or reduce the decline.

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So we have city stream up production. Right, So these wells are

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probably going to outlast you and me. Serve life index of these reservoirs is

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around forty years. It's just like
I say, if I make it to

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forty, well, I don't want
to think about that. You know what

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I'm saying. I did you and
I have encountered a few times almost a

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few times now. Yeah, So
basically you've been vindicated, your plan,

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your whole reason for doing this.
You've proven it. I think it's going

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in the direction as we anticipated the
team. You know, what we have

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encountered is what we anticipated, and
I think your operation technique and brilling technique

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is bang on, as you can
see by the results. Right. Okay,

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so now we go to the vertical
wells at Brooks status update there.

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Certainly, as we speak of,
finally we got some of the permits and

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licenses and you know, pipeline pipeline
license, will license, and we're commencing

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construction next week to set up for
drilling. We already have the drilling rig.

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We're still anticipating to meet dollar our
targets for the year end. So

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you had hit two wells last year
and when you were drilling, but basically

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they were just sitting there because you
couldn't hook them in with the pipeline.

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So you're going to be able to
do that now, right. Those are

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the pipeline permits that we have obtained, and we also have pained some leases

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to drill and these are new lease
and new pipeline, so you know,

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they has to go through the whole
process, and the process have become very

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rigorous with all the environmental consideration that
is going on. It's been about a

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five month process that we've been encountering
and finally we got some of them and

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the others are coming on the way. So the first two wells, you

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know, that's what really excited us. The first well test that one hundred

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barrels a day flowing light oil.
The other one tested at three hundred barrels

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a day light oil. I mean
that's an initial flush. Production will come

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down, but it is a lot
higher than what we anticipated, and we

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have a fair way to run in
this area. Out that we got three

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D size make. We have just
like what I showed you in the other

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screen on the reservoir. We have
delineated it with well controlled geology and size

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make, and we have identified over
twenty locations we get We do our best

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to dull our eight eight wells or
six sixty eight wells and tie including these

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two tie in wells by the year
at that's excellent news. And this is

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medium uh medium medium medium light oil
medium light. So now that's the equivalent

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of like twenty four kind of no, it's still some discount. It's about

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twenty four a bi okay, so
pretty close, yeah, love SERTs.

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So all right, so production you're
foreseeing or forecasting in the near future fifteen

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hundred and then it's going to go
up fifteen hundred barrels per day equivalent,

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and it's going to go up from
there. Right, our urine target was

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eighteen hundred and we still just obeit
to hit that. Right in the first

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five wills, like you said,
are producing and drills on site, right

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yes, we we drove them,
completed them, tight them in fairly quickly.

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And these additional program that these wells
that are commencing as we speak right

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now. You know, there's something
release constructed and we're just moving on.

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The rig is just moving on,
and we're going to commence production next week

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and we're going to do exactly what
we just did. It's all going to

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be what the shake cookie cutter,
same same process for each well because they're

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on the existing lease, there's already
pipeline, tie it in and carry on.

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Yeah, so so the opportunities there. Hey, I should mention that

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I'm a shareholder, pretty significant shareholder
from my perspective, from my finances,

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and you know, I'm been waiting
with bated breath for this interview, Sam,

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because you know, the news is
good, and obviously the market will

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do what the market does, but
at some point when they it's a story

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of consistently increasing production from this point
forward, barring weather conditions. And as

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you mentioned market condition, you know, the the reserves are there and we

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were executing them and we're going to
continue doing that as arring from these conditions.

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And like you said, you're running
fifteen percent under budget, which is

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like unheard of in the oil patch. Usually you're running fifteen to twenty five

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percent above budget. I'm very happy
to commit that and that it's it's a

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credit to all those service providers,
the technical team, you know, if

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working efficiently and effectively, right,
important And that means that you're out in

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the field watching this, making sure
that the money isn't flowing someplace else than

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otherwise into the wellhead, right.
You know, Western Canadians are happy to

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have this kind of development happening and
people are getting back to work and overall

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it's good for a family and the
society. Right. Hey, what's the

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netback situation at this point? Netback
of what we're getting for our oil.

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Yeah, we're getting average around eighty
five dollars canadian. I always talk.

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I know you guys have a Canadian
and our opp cost has been every year

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we've been releasing. It was,
like I said, it was sixty dollars

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a barrow when we took sixty plus
and we got it down to thirty eight.

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Now we're getting down to thirty three. And these are additional that's contributing

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00:14:01,000 --> 00:14:05,320
to the fixed costs, so it's
even lowering the cost so our netback is

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anywhere forty fifty dollars, which is
remarkable. And obviously the less you spend

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developing these wells, then the higher
the netback is going to be down the

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road, of course. And also
we're retiring another thirty six radical locations that

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reduces our liability. And next summer
we got a huge reclamation program to turn

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all of this back to farming lands, reducing an environmental footprint that'll also reduce

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tremendous amount to the bottom line to
the op X. Do you anticipate picking

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up the pace of drilling even more
as the cash flow starts to mount up.

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Well, sometimes you don't want to
outrun the resources you have at hand.

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And also you have to look at
the reservoir management as well. There's

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a lot of pre planning goes in
here in order to do this. When

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you rush these things, that's when
you encounter additional capital costs because you went

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a little too fast. We're maintaining
a good pace, and you also have

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to let the reservoir, you know, show us what it can do as

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well. And there's also reservoir management. Perhaps we can go a little faster,

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but then, like I said,
you need to hire more people,

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more teams, you know, all
of complicated and then all of a sudden,

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you know the process. If the
process is good, perhaps a can

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function, but a few the processes
it always starts breaking down and the functionality

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and the results starts interiorating. Interesting
developments, all on the positive side,

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which is great. I mean,
how many companies out there can point to

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revenues going higher and costs going lower. That in itself is a very rare

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00:15:48,159 --> 00:15:54,879
situation in this day and age,
with inflation and the rapidly increasing prices on

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so many things that we need every
day. So that's great to see costs

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00:16:00,080 --> 00:16:03,399
h cost going down. And I
guess we're going to have a lot more

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to talk about in the not too
distant future. So you want to go

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00:16:08,120 --> 00:16:15,799
over to cross Sperret energy dot com
sign up for notifications so you'll know right

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00:16:15,840 --> 00:16:22,559
away for every barrel of production that
that gets uh, that gets added,

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00:16:22,799 --> 00:16:26,639
which which is really what the story
is about. And ticker symbols. In

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00:16:26,759 --> 00:16:32,600
Canada it's p e I, in
the US it's g x R f F

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00:16:33,120 --> 00:16:37,600
he questions comments, you can always
send me an email k l at Carrie

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00:16:37,639 --> 00:16:41,039
LUTs dot com. Sam, thanks
for taking time out from the field.

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Probably you're happy. I know it's
cold there now, but I know that

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your heart is always in the field. That's where the action is. The

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financial survival network