Prospera Energy Increases Interest in Hearts Hills and Luseland Properties to 90%
Canadian independent oil company Prospera Energy Inc. has signed an agreement with undisclosed sellers to acquire an additional 40% working interest in the Hearts Hills and Luseland areas in Saskatchewan, for a total consideration of approximately C$1.02 million.
The acquisition increases Prospera’s overall net working interest in the properties from 50% to 90%. Under the terms of the agreement, the purchase consideration will be satisfied by a reduction of the vendors’ arrears for operational costs of approximately C$1.02 million, subject to normal accounting adjustments. The company had initially acquired a 20% operated interest in the assets in June 2018.
The assets acquired include a 40% net working interest in 30 sections of Bakken formation properties in the Hearts Hills and Luseland areas in southwest Saskatchewan, located approximately 330 km east of Calgary. The Hearts Hills properties are comprised of 9 sections, while the Luseland properties are comprised of 21 sections, all operated by Prospera. The company will remain the operator of all wells and facilities on the properties and continue with the development of production through planned well reactivations and work-overs.
Calgary-based Prospera Energy is dual-listed on the TSX-V and the Frankfurt Stock Exchange (FWB), and is engaged in operations targeting conventional oil and natural gas reservoirs in Western Canada, where it develops, acquires, and drills assets with the potential for primary and secondary recovery.
There is a significant opportunity to improve oil recovery from the assets through improved pattern balancing, conformance treatments, and implementation of secondary and Enhanced Oil Recovery (EOR) methods, Prospera says on its website. The company has identified a number of opportunities to reduce operating costs while also increasing the efficiency and run time of production, it adds.