Mr. Shawn Mehler reports

PROSPERA ENERGY INC. ANNOUNCES HORIZONTAL DEVELOPMENT PRODUCTION UPDATE

Two of the five Prospera Energy Inc. horizontal wells have commenced production over a week and have each yielded 125 barrels per day (bpd) with less than 1-per-cent water cut. These new horizontals were brought on strategically at a low pump efficiency of approximately 30 per cent to accommodate the heavier viscous oil to achieve steady flow to peak over the next few months. These initial rates are exceeding the expectations especially at the low RPM and efficiency.

The remaining three horizontal wells will commence production in the subsequent week. Currently, Prospera gross production levels are over 1,000 barrels of oil equivalent per day (boepd) with 300 boepd behind pipe to accommodate development. Over the next month, Prospera is expected to attain gross production level of 1,500 boepd from behind the pipe production resumption and the additional production from the new horizontal wells.

The horizontal infill drilling program will resume in the next few weeks and will continue the horizontal infill drilling transformation from vertical wells through the winter to next year break up. Prospera's quick turnaround to bring this specific horizontal production on-line allows Prospera to maintain momentum to capitalize on the current strong oil price environment. Furthermore, medium oil development consents are near completion to proceed to permits and to commence drilling.

Prospera has received a robust response to the non-brokered private placement of debt financing. A total of up to $3-million will be raised offering holders interest of 14 per cent per annum, with interest payments to be made quarterly for a term of two years. In addition to interest, holders will receive one common share for each dollar of principal advanced, at the time of investment. The company has already received multiple-lead orders of $1-million-plus toward this offering. The financing is to accommodate joint venture partner deficit and to extend drilling.

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 barrels). These horizontal laterals and slanted wells will allow Prospera to increase production by approximately 1,000 bpd with recovery of approximately 100 million stock tank barrels per well. PEI will reduce its environmental and surface footprint by eliminating the numerous vertical well leases along the lateral path. Phase III 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.

We seek Safe Harbor.