As part of the transaction, 18 000 000 common shares of PEI will be issued to WTP shareholders, contingent upon WTP achieving 85 boe/d for three consecutive days across its properties. This condition was achieved based on production levels from 27 February to 1 March. A performance-based bonus of 7 312 500 additional shares will be issued if production of 128 boe/d can be demonstrated for at least seven consecutive days within six months from the acquisition date. The Corporation is also assuming CAN$695 000 in debt as part of the transaction.

Prospera will assume operational oversight of WTP on 6 March 2025, and immediately deploy a CAN$200 000 workover and reactivation program to optimise production beyond 128 boe/d. The bonus share consideration will be issued following the final statement of adjustments and verification of sustained production levels.

This transaction qualifies as a related party transaction. Shubham Garg serves as Prospera’s Chairman of the Board, the CEO of WTP, and is a shareholder of WTP. The Corporation has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(a) of MI 61-101 in respect of such insider participation. In addition, the related party director has recused himself from all board discussions including the acquisition’s deal structure, valuation, and decisions in relation to this transaction.

The Corporation has strengthened its corporate governance policies, including full public disclosure of monthly operational updates. These policies are now transparently available on Prospera’s website which include the PEI board mandate, PEI audit committee charter, PEI disclosure policy, ESTMA reports, and PEI related parties policies. This highlights Prospera’s renewed commitment to enhanced transparency, public disclosure, and governance.