Investor overview · TSXV: PEI · OTC: GXRFF · Calgary, Alberta

Unlocking value in existing wells.

Prospera Energy is a Calgary-based heavy oil producer that brings shut-in wells in Saskatchewan and Alberta back on production instead of drilling new ones. It produces about 745 boe/d, reported record revenue of C$6.2MM in Q2 2026, and its first ten reactivations have returned 1.92 times their capital. A C$12MM unit private placement funds the next round of restarts.

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C$6.2MM
Record Q2 2026 revenue, up 37% on Q1
1.92×
Capital returned on the first ten reactivations
9 of 10
Reactivated wells paid out, in 11 months on average
C$11K
Capital per boe/d added through reactivation
140+
Shut-in wells in inventory, 41 ranked Tier 1
The opportunity

Why Prospera, why now.

Three things the October 2026 investor presentation makes clear.

Restart wells, don't drill them

Prospera's Western Canadian heavy oil fields hold about 379 MMbbl of oil in place with only 8 to 10% recovered, and more than 140 wells shut in but not depleted. Bringing them back costs about C$11K per boe/d of production, which the company puts at three to five times cheaper than drilling.

A program that has already paid back

The first ten wells restarted in 2025 took C$1.14MM of capital and have generated C$2.19MM of operating income. Nine have paid out, three of them twice. This fall's five Luseland workovers lifted oil rates from 15 to 54.5 bbl/d and came in 23% under budget.

Revenue up, debt termed out

Luseland production rose from 54 to 244 boe/d without a new well, driving record quarterly revenue in Q2 2026. The senior term loan was extended to August 2028, so placement proceeds go into wells rather than debt repayment, with WCS heavy oil near C$100 per barrel.

From the deck

The key slides, with the takeaway.

A few pages from the corporate presentation that carry the story. Download the full deck →

Western Canadian asset footprint
Western Canadian asset footprint
Six fields across Alberta and Saskatchewan: Luseland, Cuthbert, Hearts Hill, Consort, Hanna and Brooks.
The reactivation program has paid out
The reactivation program has paid out
C$1.14MM in, C$2.19MM of operating income back; the program crossed payout in April 2026.
Key Wells Report
Key Wells Report
Nine of ten wells paid out and three past their second payout; the best well is at 2.79×.
Fall restarts at Luseland
Fall restarts at Luseland
Five wells worked over Sep 21 to Oct 10: oil rate 15 to 54.5 bbl/d, 23% under budget.
Fourteen more wells on the rig schedule
Fourteen more wells on the rig schedule
Rig at Cuthbert now, then Hearts Hill, then six Luseland shut-in reactivations.
The C$12MM private placement
The C$12MM private placement
Units at C$0.03 with a two-year C$0.05 warrant; C$10MM goes into existing wellbores.
The deal

A C$12MM unit placement to restart more wells.

Terms as announced in the company's September 9, 2026 news release and the October 2026 presentation. The placement is non-brokered, may close in tranches, and remains subject to TSX Venture Exchange approval.

Instrument
Units: one common share + one warrant
Price per unit
C$0.03
Warrant
C$0.05 exercise, two years from closing
Size
Up to C$12MM (400MM units)
If warrants exercised
Up to C$32MM in total
Scheduled close
October 24, 2026
Hold period
Four months and one day
Accounts
TFSA, RRSP, RESP, RRIF, RDSP, FHSA and DPSP eligible
Use of proceeds
  • Shut-in well reactivations (~10 per month from close)C$9MM
  • Workovers and optimization on producing wellsC$1MM
  • Payables and working capitalC$2MM
Units are offered to qualified purchasers under exemptions from Canadian prospectus and registration requirements, only in jurisdictions where the company may lawfully do so. The company may pay finders up to 7% in cash and 7% in warrants. Nothing on this page is an offer of securities; contact the company directly.
Who's running it

The team and their track record.

SG
Shubham Garg
Executive Chairman & CEO

Oil entrepreneur with about ten years of operating experience and a capital-markets track record; architect of the reactivation strategy.

DJ
Darren Jackson
Chief Operating Officer

Professional engineer with 30 years in oil and gas operations.

CL
Chris Ludtke
Chief Financial Officer

20 years in heavy oil and upstream finance, including 12 years at Husky Energy.

PC
Peter Chung, PhD
Senior Reservoir Engineer

18 years in reservoir management and enhanced oil recovery; PhD in chemical engineering.

MK
Matthew Kenna
Director

CPA, CMA with 30 years of leadership and finance experience, formerly at KUDU Industries.

ML
Mark Lacey
Director

20 years in public and private markets; president of a Central Alberta family office.

BM
Brian McConnell
Director

P.Eng with 47 years in the oilfield, including roles at Saskoil, Wascana, Murphy Oil and Tundra.

Catalysts

What happens next.

  • Nov 2024
    Reactivation program begins
    First shut-in wells restarted at Luseland
  • Mar–Oct 2025
    First ten wells reactivated
    C$1.14MM of capital
  • Mar 2026
    Luseland production at an eight-year high
    54 to 244 boe/d without a new well
  • Apr 2026
    Reactivation program pays out
    Cumulative operating income passes capital invested
  • Aug 3, 2026
    Record Q2 2026 revenue
    C$6.2MM, up 37% on Q1; operating cash flow positive for H1
  • Aug 29, 2026
    Senior term loan extended to August 2028
    C$20.7M facility termed out by two years
  • Sep 21–Oct 10, 2026
    Five Luseland workovers
    Oil rate 15 to 54.5 bbl/d, 23% under budget
  • Oct 24, 2026
    C$12MM private placement scheduled to close
    Subject to TSX Venture Exchange approval
  • Now
    Service rig at Cuthbert, then Hearts Hill
    Five Cuthbert wells and three Hearts Hill wells
  • Next
    Six-well Luseland reactivation program
    Shut-in wells, plus recycle-pump upgrades in Sections 17 and 18
  • By Nov 29, 2026
    Q3 2026 financial results
    First quarter to include the fall workovers
  • End of 2028
    Company model target of 3,310 boe/d
    From about 745 boe/d today; model projection, not guidance
Capital snapshot

Where the cap table stands.

609M
Shares outstanding (Jun 30, 2026)
~C$70MM
Enterprise value (Aug 31, 2026)
C$161MM
2P reserve value, per company presentation
C$20.7M
Senior term loan, 12%, due Aug 2028
C$10.7MM
H1 2026 revenue
~745
Production, boe/d

Shares and revenue per the Q2 2026 financial statements; enterprise value, reserve value and production per the October 2026 presentation; loan terms per the August 29, 2026 news release. Not pro forma for the 400MM units in the placement or their warrants.

Documents

Do your diligence.

PDFInvestor presentation, Miami, October 2026PDFCorporate presentation, October 2026FINQ2 2026 financial statementsPRFive Luseland restarts; 1.92× capital returned (Oct 16)PRPrivate placement terms (Sep 9)PRTerm loan extended to 2028 (Aug 29)WEBReports and filingsSEDARSEDAR+ filings
Key considerations

The questions investors ask, and where each stands.

  • Balance sheet — The Q2 2026 statements carry a going-concern note: C$24K of cash and a C$39.7M working-capital deficit at June 30, mostly the term loan then due August 31.Where it standsThe C$20.7M term loan was extended two years to August 31, 2028, taking it out of near-term obligations; operating cash flow was positive at C$0.9M in H1 2026; and C$2MM of the placement is earmarked for payables and working capital.
  • Dilution — 400MM units against 609M shares outstanding, each with a warrant, plus finder's warrants of up to 7%.Where it standsPriced at C$0.03 with the warrant at C$0.05; exercise would bring in up to C$20MM more for the drilling-free program; with the loan termed out, proceeds fund wells rather than debt repayment.
  • Early production data — The fall workovers have been on production for days to weeks, and early post-workover rates may not hold in a sandy heavy oil reservoir.Where it standsThe first ten wells have 18 months of data: 62,090 boe sold, C$2.19MM of operating income on C$1.14MM of capital, and nine of ten paid out; the one laggard is at 0.78× and about five months from payout.
  • Oil price — Revenue follows Western Canadian Select heavy oil, and the company's model assumes US$75 WTI.Where it standsThe company models returns from US$70 to US$85 WTI; WCS differentials have narrowed to US$12–15 since Trans Mountain entered service; and restart capital of about C$150K per well is largely fixed, so payouts shorten as prices rise.
  • Legacy liabilities — Mature fields carry C$22.3M of decommissioning obligations, spread over 1 to 46 years.Where it standsReactivation puts revenue back against wells that would otherwise sit idle; 140+ candidates are in inventory with 41 ranked Tier 1, and each restart is paid for by the cash flow of the last.
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Next step

Want the full picture?

For the private placement or a call with management, contact Chris Ludtke, CFO, or Shushu Feng of Signal Capital Advisors (shushu@signalcapitaladvisors.com), the company's investor relations firm.

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Investor contact
Chris Ludtke
Chief Financial Officer, Prospera Energy Inc. · Suite 730, 444 7th Ave SW, Calgary, AB
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