Mr. Shawn Mehler reports

PROSPERA ENERGY ANNOUNCES A +500 BBLS PER DAY FLOWING WELL AND CONTINUED HORIZONTAL DRILLING SUCCESS

Prospera Energy Inc. produced 500-plus barrels per day from a medium-light-oil flowing well, during a full day of production testing. This above gradient pressure reservoir will typically flow for a few months and will transition into an artificial lift system production of approximately plus-150 bbl/d (barrels per day) of stabilized rate. A second well is also to come on-line within the next few days, expecting similar production rates. Prospera will continue the medium-light-oil drilling development to increase production and diversify the heavy-light-oil product mix to increase shareholder value.

Prospera is also delighted to announce the heavy oil drilling success of attaining lateral pay greater than 500 metres that has realized initial production rates higher than 100 bbl/d. The second group of horizontal transformation wells drilled has attained consistently more than 500 m of lateral pay, and the most recent (the eighth horizontal well) has attained over 700 m of lateral pay. The ninth well is expected to commence in the next few days.

Pleasantly, based on the drilling and optimization success, Prospera has achieved a high daily gross production rate of 1,577 boepd (barrels of oil equivalent per day). As a result, Prospera is expected to exceed the year-end exit target of 1,800 boepd. These successful developments translate to significant additional reserve and appreciation of Prospera's net present value (NPV). Prospera's joint venture partners are in receivable and therefore in default position until remedied. Consequently, Prospera assumes 100 per cent of the cash received from the partner's share of oil sales.

Prospera Energy will continue the phase 2 development transformation to optimize recovery from the significant remaining reserves and achieve operational excellence to become a low-cost producer. In 2024, the company plans to further enhance recovery through enhanced oil recovery (EOR) methods and add to existing production levels through strategic acquisitions to expand the core reserve base and to diversify the product mix.

The restructured Prospera remains steadfast in its commitment to eliminating the legacy arrears to landowners, regulators and the local community. Prospera is sincerely thankful to all stakeholders for their co-operation and collaboration for Prospera's continued growth. On behalf of the entire team, Prospera wishes you and your family a very Merry Christmas, the best of the festive season and safe holidays.

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 is primarily focused on optimizing hydrocarbon recovery from legacy fields through environmentally safe and efficient reservoir development methods and production practices. Prospera was restructured in the first quarter of 2021 to become profitable, and in compliance to regulation, environment, landowners and service providers.

The company is in the midst of a three-stage restructuring process aimed at prioritizing cost-effective operations while appreciating production capacity and reducing liabilities. Prospera has completed the first phase by optimizing low hanging opportunities and attaining free cash flow, while bringing operations to safe operating condition, all while remaining compliant. Currently, Prospera is executing phase 2 of the restructuring process, the horizontal transformation intended to accelerate growth and capture the significant remaining reserves (400 million barrels). These horizontal laterals allow Prospera to 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 is to optimize recovery through enhanced oil recovery applications. Further, Prospera will pursue 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 continues to apply efforts to minimize its environmental footprint, and, also, efforts to reduce and eventually eliminate emissions, alongside pursuing innovative ESG methods to enhance API quality, thereby achieving higher margins and eliminating the need for diluents.

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