Prospera Reports Record Revenue and Significant Increase in Operating Netback in Q2 2026

Calgary, Alberta--(Newsfile Corp. - August 3, 2026) - Prospera Energy Inc. (TSXV: PEI) (OTC Pink: GXRFF) (" Prospera ", " PEI ", the " Corporation ", or the " Company ") Prospera is pleased to report the strongest quarter in its recent history. Sales revenue reached $6.2 million ($91.17/boe), the highest quarterly revenue in five years, while operating netback rose to $2.0 million or $29.65/boe, the best in 24 months. These results were delivered through spring break-up, historically the highest-risk operating window for Western Canadian heavy oil producers, on disciplined capital spending of only $0.6 million. Momentum built every month: monthly operating income in June 2026 was approximately four times January 2026 levels, driven by rising production from reactivated wells, stronger realized pricing, and a cost structure held flat which is the clearest evidence yet that each incremental barrel Prospera brings online converts directly into cash flow. Q2 proved the margin engine; the Offering is built to turn on the volume engine. Q2 2026 Financial & Operating Summary ($ except where noted) Q2 2026 Q1 2026 Q2 2025 vs Q1/26 vs Q2/25 Average net sales volumes (boe/d) 745 720 780 +3% (4)% Sales revenue 6,184,396 4,522,137 4,902,540 +37% +26% Sales revenue ($/boe) 91.17 69.75 69.03 +31% +32% Field operating costs ($/boe) (1) 47.45 49.90 36.86 (5)% +29% Operating netback (1) 2,011,303 713,053 1,613,923 +182% +24% Operating netback ($/boe) (1) 29.65 10.99 22.73 +170% +30% (1) Non-GAAP financial measure or ratio - see "Reader Advisories" below. For the six months ended June 30, 2026, the Corporation generated sales revenue of $10.7 million and an operating netback of $2.7 million. Q2 2026 Highlights Record revenue: $6.2 million ($91.17/boe), the highest quarterly sales revenue in five years, up 37% quarter over quarter on a 31% increase in realized prices and a 3% increase in volumes. Margin engine proven: Operating netback of $2.0 million or $29.65/boe, nearly tripling Q1 2026, with monthly operating income in June approximately four times January levels, driven by higher reactivated-well production, stronger pricing and flat operating costs. Cost structure held flat: Total operating costs of $3.22 million were unchanged from Q1 2026 despite higher volumes; field operating costs per boe fell 5% quarter over quarter. Excellent break-up execution: Increasing field uptime and zero pipeline failures, compared with five pipeline failures in Q2 2025. Reactivations compounding: The 16 wells reactivated in 2025 averaged 133 bbl/d in H1 2026, up 64% from their 2025 average, and reached 141 bbl/d in June, driving capital efficiency to approximately $13,300 per flowing barrel per day, a fraction of typical new-drill costs, with no service rig intervention required. Significant optimization potential remains as the wells continue to clean-up through sand influx phases and wormhole propagation. Balance sheet strengthening: Trade and other payables cut by $1.8 million (10%) since year-end to $16.3 million, including $170,476 settled in shares during the quarter and a $71,121 gain on debt settlements. Per-barrel profitability is re-established, the cost base is flat, the candidate inventory is deep, and prices are elevated with upside retained. The Offering exists to convert that combination into volume. "This is the quarter the turnaround stopped being a promise and became a run-rate," said Shubham Garg, Executive Chairman and CEO. "We posted our best netbacks in two years and generation more than $2,000,000 operating income through spring break-up, the window that breaks heavy oil producers, while enhancing field operating procedures. This upward trajectory was built well-by-well, with the same team and the same playbook we are about to point at more than 140 remaining reactivation candidates. The strategy and engine are proven and every incremental barrel we add lands on a cost structure we have already shown we...