Prospera Energy reported record quarterly revenue of CAD 6.2 million in Q2 2026, a 37% increase from the prior quarter, driven by heavy oil well reactivations in Saskatchewan, the company said at the EnerCom Denver energy conference.
Operating netback rose to about CAD 30 per barrel, up 170% from Q1, while operating cash flow reached CAD 1.7 million by June from the 2025 reactivation program. Revenue per produced barrel of oil equivalent climbed 32% year-over-year to CAD 91 in Q2 2026. Current production stands at 745 BOEs per day, with heavy oil accounting for 99% of output.
The company completed a CAD 12 million non-brokered private placement, allocating CAD 10 million to ground operations and well reactivations. Prospera has identified 140 reactivation targets from existing vertical wells, including 41 Tier-1 candidates, with typical reactivation costs of CAD 150,000 per well and payback periods of 6 to 8 months.
Management targets production of 3,300 barrels per day by 2028 and quarterly revenue of CAD 20 million to CAD 25 million. The company’s 2P reserves totaled 228 million barrels as of Q1 2026, with proved developed producing reserves up 37% since early 2024. Reserve life is estimated at more than 30 years based on 2P reserves.
Prospera reactivated 17 wells in 2025 at a total capital cost of CAD 1.64 million. Turnaround time from service rig arrival to first production averages 36 hours, with a cadence of about six wells per month using existing cash flow. Reactivated wells have demonstrated strong capital efficiency, with expected returns of about 4x invested capital.
Reservoir characteristics include approximately 40% porosity, permeability up to 4 Darcies, and net pay of up to 14 meters. The company has upgraded progressive cavity pumps to larger 13-series and 18-series units to improve lift capacity, alongside a recycle pump strategy injecting 80°C oil into the reservoir to dilute sand.
Prospera trades at CAD 0.04 on the TSX Venture Exchange and has set a target share price above CAD 0.10. The company remains unprofitable over the trailing twelve months with an EPS of -CAD 0.02 and carries a significant debt burden, according to InvestingPro data.
Shubham Garg, Chairman and CEO, emphasized the company’s focus on reactivation over drilling or exploration. "These are CAD 150,000 each, so compared to some of the unconventional wells and even the conventional drills you may have heard earlier this week, we are very cheap, capital efficient," Garg said. "Canada has been under-capitalized for over a decade, especially the heavy oil plays up there."
