Mr. Shawn Mehler reports

PROSPERA ENERGY INC. ANNOUNCES HORIZONTAL INFILL DRILLING PROGRAM UPDATE AND INTEREST PAYABLE REDUCTION SETTLEMENT

Prospera Energy Inc. has completed the drilling of four horizontal wells of the 10-well multipad infill drill program. These wells encountered structure and pay as expected with excellent oil show throughout the pay. The drilling technique tweaked from the pilot wells were executed efficiently and ahead of schedule. The company gives high praises to Lasso Drilling Corp. for the effective synergy with Prospera to attain efficiency. These drilled horizontals are being completed and tied into existing infrastructure. Turnaround time to bring the production on line is approximately two to three weeks; two horizontal wells are already completed. The production will be brought on gently initially to optimize recovery due to the heavier fluid properties. The full deliverability can be attained approximately over a three-month period. The next set of four horizontals are to commence within one week, barring any weather-related delays.

This multipad infill drill program stems from a comprehensive geological, seismic and reservoir management delineation. The infill program is designed to optimize recovery with optimum wells in a cost-effective manner, while also aligning with planned enhanced and improved recovery techniques. As previously announced, this 10-well program can approximately add an additional 750 barrels per day (b/d) at a low decline to Prospera's current 900-plus barrels of oil equivalent per day (boepd). This infill development is intended to accelerate production and recovery to capture the significant remaining heavy oil reserves (400 million barrels (bbl)).

The medium-light oil spud will follow the heavy oil horizontal well transformation from vertical wells in the latter part of this month. These slanted drills are awaiting the preparation of the new leases, surface facilities and connecting pipelines. The medium-light oil development entails six to eight directional wells that can add an additional 600 bpd (gross) at 50-per-cent WI (working interest), diversifying Prospera's product mix and improving margin.

Over all, this phase 2 development plan will allow Prospera Energy to become a low-cost producer with a significant increase in production. Restructured Prospera primary focus subsequent to increased production and corresponding revenue is to address all legacy arrears (especially, landowners and local community vendors), stay current with payables and maintain services with comparable terms. Meanwhile, Prospera will continue to execute its liability management plan to reduce the asset reduction obligations.

Interest payable reduction settlement

Prospera announces that the corporation has accrued indebtedness to the corporation's convertible debentureholders in the amount of $376,050.76 for interest expenses. The corporation has the option to pay creditors interest in either cash or in shares at market price, at the corporation's discretion, and has agreed to settle the debt by the issuance of fully paid common shares in the capital of the corporation.

This interest payable will reduce the current liabilities, in turn further improving its current ratio and liabilities related to the settlement of historical arrears. The corporation intends to settle the debt at a price per common share of 10.5 cents, for an aggregate amount of 3,581,434 common shares. The common shares will be subject to a four-month hold period. The transaction is subject to the approval of the TSX Venture Exchange.

About Prospera Energy Inc.

Prospera Energy is a publicly traded energy company based in Western Canada, specializing in the exploration, development and production of crude oil and natural gas. Prospera Energy has announced a mid-August spud of its phase 2 restructured development program intended to increase production. The phase 2 development entails the drilling of 10 horizontal wells in heavy oil and eight slanted wells in medium-light oil to accelerate growth and capture the significant remaining reserves (400 million bbl). These horizontal laterals and slanted wells will allow Prospera Energy to increase production by approximately 1,000 bpd with recovery of approximately 100 million stock tank barrels per well. Prospera Energy will reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path. Phase 3 of Prospera's corporate redevelopment strategy will focus on continuing the company's horizontal modular development to appreciate production and optimize recovery of remaining reserves.

Prospera Energy intends to implement full-scale EOR (enhanced oil recovery) applications based on the results of its phase 2 pilot program, which is forecasted to optimize recovery by greater than 10 per cent. Prospera Energy also intends to continue its acquisition strategy to diversify its product mix. Its goal is to attain 50 per cent light oil, 40 per cent heavy oil and 10 per cent gas.

Prospera Energy continues to apply efforts to minimize its environmental footprint. Also, it is making efforts to reduce and eventually eliminate emissions, alongside pursuing innovative ESG (environmental, social and goverance) methods to enhance API quality, thereby achieving higher margins and eliminating the need for diluents.

We seek Safe Harbor.