Prospera Energy Announces Two-Year Extension of Senior Term Loan and Repricing of Equity Financing

Prospera Energy (TSXV: PEI) (OTC Pink: GXRFF) ("Prospera", "PEI", the "Corporation", or the "Company") is pleased to announce that it has entered into an amendment to its senior term loan, extending the maturity date by two years, from August 31st, 2026 to August 31st, 2028. The facility, with a total principal amount of $20,739,465, retains all of its original terms, including its 12% annual interest rate and monthly interest payments. The amendment remains subject to acceptance by the TSX Venture Exchange. The extension terms out the Corporation's near-term balance sheet obligation and converts a refinancing requirement into a two-year operating runway. With the facility now termed out to 2028, Prospera continues to proceed strongly with advanced discussions on its equity financing of up to C$12 million while directing management focus and capital toward growing production, cash flow, and reserves. Additionally, this positions incoming equity dollars to translate directly into capital spend and not into debt principal repayments or amortization. Every dollar raised can be deployed directly into the Luseland reactivation and optimization program while heavy oil pricing sits at multi-year highs.

The amendment is completed against one of the most supportive commodity price environments Canadian heavy oil producers have seen in more than a decade. Global benchmarks have re-rated materially higher over the past year, with West Texas Intermediate recently trading above USD $80/bbl and significantly above last year's levels. Continued geopolitical disruption across the Middle East and in Russia, constrained flows through the Strait of Hormuz and Bab-el-Mandeb strait, commercial inventories below five-year averages and SPR inventories draining globally, and healthy global demand are supporting both near-term and longer-term pricing for physical barrels. Specifically relating to heavy oil, Western Canadian Select differentials to WTI have structurally tightened since the Trans Mountain Expansion entered service, recently trading in the range of US$12 to US$15 per barrel at Hardisty compared with the US$18 to US$25+ discounts that characterized the pre-2024 period. Combined with a Canadian dollar near US$0.72, this translates into current WCS benchmark pricing in the range of C$95 to C$100+ per barrel. For a reactivation-focused producer, this backdrop carries asymmetric leverage. Reactivation capital is largely fixed at ~$150,000 per vertical wellbore, while revenue scales directly with the commodity strip resulting in faster payouts, increasing netbacks, and accelerating the rate at which the program compounds.

The two-year term-out is the structural step that positions the Corporation to complete its equity financing of up to C$12 million. Prior to the amendment and extension, the senior facility matured within weeks, meaning new equity would effectively have been underwriting a near-term refinancing. With the maturity now aligned to the Corporation's 2027-2028 development horizon, equity proceeds are intended to directly fund low-risk reactivation capital deployed into one of the strongest Canadian heavy oil price environments in more than a decade. What a Two-Year Runway Means for Prospera - Complete the C$12 million equity financing from a position of strength. Removing the near-term maturity eliminates the refinancing overhang that typically weighs on new-issue pricing for junior producers. Equity discussions now proceed on the merits of the reactivation program, current and forecasted heavy oil pricing, and the Corporation's growth trajectory. This supports both the completion of the financing and the direction of proceeds to production growth rather than debt retirement. Optimize the current Luseland wells in operation. The wells returned to pr...