Prospera Energy (PEI) investor relations material

Strategic positioning and operational focus

• Majority insider ownership and focus on capital-efficient heavy oil reactivation in Saskatchewan, Canada.

• No drilling or exploration; strategy centers on reactivating legacy vertical wells using modern technology.

• 140 reactivation targets identified, with 41 Tier 1 candidates prioritized for near-term scaling.

• Emphasis on low-risk, high-growth development with rapid well paybacks and minimal geological risk.

• Unique market position as one of few sub-CAD 50 million market cap Canadian oil companies remaining.

Technical advancements and production results

• Reactivation program has delivered 352% growth in the Luseland pool, with over 30,000 bbl produced from four wells in the past year.

• Implementation of progressive cavity pumps, recycle pumps, and optimized sand management has improved well performance.

• Several wells have achieved 2x-3x payback, with some producing for decades and showing inclining production profiles.

• Optimization strategies include careful RPM increases and pump sizing to accelerate peak rates and manage sand.

• Waterflood adjustments and targeted engineering have stabilized and increased output from legacy wells.

Financial performance and growth outlook

• Q2 2026 marked the highest revenue and operating cash flow in years, with CAD 6.2 million revenue, up 37% from Q1.

• Operating netbacks reached approximately CAD 30/BOE, with cost controls and higher oil prices driving margins.

• 17 wells reactivated last year generated CAD 1.7 million in cash flow from a CAD 1.64 million investment.

• Private placement underway to raise CAD 12 million, with CAD 10 million allocated to well reactivations.

• Targeting 5x growth in production over 2-3 years, aiming for 3,300 bbl/day and significant reserve increases by 2028.