Business
Prospera Energy Inc. Reorganizes to Strengthen the Balance Sheet
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES ...
About this update from Prospera Energy Inc.
[{"type":"text","content":"Prospera Energy Inc. Reorganizes to Strengthen the Balance SheetNOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESCALGARY, AB / ACCESSWIRE / October 25, 2021 / Prospera Energy Inc. (TSXV:PEI)(FRA:OF6A):This press release contains certain updates and forward-looking statements. Towards the 2020 year end, Prospera Energy Inc. (\"PEI\" or the \"Company\") found itself in a challenging position. It had become exceedingly difficult to continue operations due to high and long outstanding liabilities. These circumstances were further amplified by the pandemic and drastic reduction in produced volumes.In December 2020, Mr. Samuel David was appointed as President & CEO and to the Board of Directors of PEI. Mr. David's objective was to avert receivership and to reorganize the Company in order to strengthen the balance sheet and position PEI to move forward.  The restructuring coordinated by Mr. David was designed to allow PEI to attain efficiencies and profitability, through safe operations, while achieving environmental and regulatory compliance. This plan included:Structuring an Equity and Convertible Debenture Private Placement financing that raised 5.6 Cdn$. These proceeds were used to settle the secured creditors, settle the non-secured creditors through a combination of monthly payments and share debt settlement proposal, address environmental and regulatory compliances, and working capital to initiate the production optimization.Restructuring the Board of Directors with diverse business and technical background and forming an experienced management team, focused on technical delineation to optimize recovery cost effectively and safely.Aspiring to provide a positive perception for the oil & gas industry by eliminating all emissions, minimizing environmental disturbances, and conducting environmentally safe operations.PEI reorganization efforts have resulted in liability reduction and production appreciation. Subsequent Quarter 3, 2021 financial statements will reflect these efforts. PEI looks forward to continued communication as the Company moves forward under new direction.About ProsperaProspera is a public oil and gas exploration, exploitation and development company focusing on conventional oil and gas reservoirs in Western Canada. Prospera will use its experien...