CALGARY, Alberta, April 01, 2025 (GLOBE NEWSWIRE) -- Prairie Provident Resources Inc. ("Prairie Provident" or the "Company") (TSX:PPR) announces its operating and financial results for the fourth quarter and year ended December 31, 2024 and year-end reserves. Prairie Provident's audited annual consolidated financial statements and related Management's Discussion and Analysis (MD&A) for the year ended December 31, 2024 and Annual Information Form, dated March 31, 2025 for the same period are available on the Company's website at www.ppr.ca and filed on SEDAR+ at www.sedarplus.ca.
2024 ANNUAL HIGHLIGHTS
- In the first quarter of 2024, the Company sold its Evi assets in northern Alberta and certain non-core assets located in the Provost area of Central Alberta. Net proceeds of approximately CAD$24.2 million were received from these dispositions, with CAD$20.0 million used to reduce indebtedness under the Company's senior secured note facility.
- In October 2024, the Company completed a rights offering raising aggregate gross proceeds of $12.0 million (the "Rights Offering”).
- The net proceeds from the Rights Offering were used to retire indebtedness and drill two Basal Quartz horizontal wells in Prairie Provident's Michichi core area. The Company reported IP60 (initial 60-day average production) rates on the two wells of approximately 333 boe/d (221 bbl/d of medium crude oil and 674 Mcf/d of natural gas) and approximately 305 boe/d (189 bbl/d of medium crude oil and 697 Mcf/d of natural gas), respectively.
- For the year ended December 31, 2024, production averaged 2,310 boe/d (56% liquids).
- Operating netback1 for the year was $9.8 million ($11.57/boe) before the impact of derivatives in 2024, or $9.3 million ($11.00/boe) after realized losses on derivatives.
- Operating expenses were $32.98 per boe in 2024.
- As at December 31, 2024, net debt1 totaled CAD$62.8 million, comprised of CAD$50.3 million under the senior secured note facility, CAD$5.2 million under its second lien notes (including deferred interest paid-in-kind) and a CAD$7.3 million working capital deficit.
1 Operating netback and net debt are non-GAAP financial measures and are defined below under "Non-GAAP and Other Financial Measures".
FOURTH QUARTER 2024 AND 2025 YEAR TO DATE FINANCIAL AND OPERATIONAL HIGHLIGHTS
- Production averaged 2,385 boe/d (57% liquids) for the fourth quarter of 2024.
- Fourth quarter 2024 operating netback1 before and after the impact of derivatives was $4.0 million ($18.05/boe).
- Net capital expenditures1 for the fourth quarter of 2024 of $9.0 million were primarily associated with the Company's Basal Quartz drilling activities.
- In February and March of 2025, the Company completed a brokered equity financing raising aggregate gross proceeds of $8.67 million to facilitate further development in the Basal Quartz formation.
| Three Months Ended
December 31, | Twelve Months Ended December 31, | |||||||
| ($000s except per unit amounts) | 2024 | 20232 | 2024 | 20232 | ||||
| Production Volumes | ||||||||
| Crude oil and condensate (bbl/d) | 1,298 | 2,049 | 1,226 | 2,190 | ||||
| Natural gas (Mcf/d) | 6,107 | 7,374 | 6,093 | 7,579 | ||||
| Natural gas liquids (bbl/d) | 69 | 135 | 68 | 105 | ||||
| Total (boe/d) | 2,385 | 3,413 | 2,310 | 3,558 | ||||
| % Liquids | 57% | 64% | 56% | 64% | ||||
| Realized Prices | ||||||||
| Crude oil and condensate ($/bbl) | 83.16 | 87.12 | 85.40 | 88.50 | ||||
| Natural gas ($/Mcf) | 1.49 | 2.10 | 1.53 | 2.55 | ||||
| Natural gas liquids ($/bbl) | 53.93 | 43.08 | 59.92 | 53.05 | ||||
| Total ($/boe) | 50.65 | 58.54 | 51.15 | 61.46 | ||||
| Operating Netback($/boe) | ||||||||
| Realized price | 50.65 | 58.54 | 51.15 | 61.46 | ||||
| Royalties | (2.58 | ) | (11.00 | ) | (6.60 | ) | (9.14 | ) |
| Operating costs | (30.02 | ) | (36.45 | ) | (32.98 | ) | (34.14 | ) |
| Operating netback | 18.05 | 11.09 | 11.57 | 18.18 | ||||
| Realized gains (losses) on derivatives | - | (0.96 | ) | (0.57 | ) | (0.72 | ) | |
| Operating netback, after realized gains (losses) on derivatives | 18.05 | 10.13 | 11.00 | 17.46 | ||||
1 Operating netback and net capital expenditures are non-GAAP financial measures and are defined below under "Non-GAAP and Other Financial Measures".
2 Incorporates adjustments as noted in Note 24 (Restatements) in the Company's audited annual consolidated financial statements for the year ended December 31, 2024 available on the Company's website at www.ppr.ca and filed on SEDAR+ at www.sedarplus.ca.
2024 RESERVES
The Company's oil and gas properties were evaluated by Trimble Engineering Associates Ltd. ("Trimble”), effective December 31, 2024, in a report dated March 3, 2025 (the "Trimble Report"). Trimble is the Company's independent reserves evaluator.
Overview
| December 31, 2024 | Proved Developed Producing | Total Proved | Total
Proved plus Probable | ||||
| Reserves (MMboe) | 5.6 | 14.5 | 24.4 | ||||
| Net Present Value, discounted @10% ($Million) | $38.5 | $185.5 | $337.2 | ||||
| Reserve Life Index (1) (years) | 6.6 | 13.1 | 21.4 | ||||
- Reserve life index(1) is 6.6 years, 13.1 years, and 21.4 years, based on 2024 annual production on a proved developed producing (PDP), total proved (1P), and total proved plus probable (2P) basis, respectively.
- Two Basal Quartz horizontal wells were drilled in Michichi in Q4 2024, adding 0.5 MMboe in reserves to PDP. Additionally, 4.1 MMboe 1P reserves and 9.4 MMboe 2P reserves were added with respect to additional Basal Quartz drilling locations.
- The Company's Evi property and non-core Provost assets were divested in 2024, reducing reserves by 2.9 MMboe proved developed producing (PDP), 6.3 MMboe total proved (1P), and 8.4 MMboe total proved plus probable (2P).
- Technical revisions included removing Banff proved undeveloped locations to better reflect the Company's near-term drilling plans in the Basal Quartz.
Reserves Summary
The following presentation summarizes certain information contained in the Trimble Report, which was prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101”) and the definitions, standards, and procedures contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook”). Trimble evaluated 100% of the Company's reserves. The Trimble Report is based on forecast prices and costs and applies the Sproule Associates Ltd. ("Sproule”) December 31, 2024 forecast escalated commodity price deck and foreign exchange rate and inflation rate assumptions. Estimated future net revenue is stated without any provisions for interest costs, other debt service charges, or general and administrative expenses, and after the deduction of royalties, estimated operating costs, estimated abandonment and reclamation costs, and estimated future development costs.
Additional information regarding the Company's reserves data and other oil and gas information are included in the Company's Annual Information Form for the year ended December 31, 2024 (the "AIF”), which is available on the Company's issuer profile on SEDAR at www.sedar.com.
See also the "Cautionary Statements” below for further explanations and discussion.
Summary of Corporate Reserves(1)(2)(5)
The following table is a summary of the Company's estimated reserves as at December 31, 2024, as evaluated in the Trimble Report.
| Reserves Category | Light and Medium Oil | Heavy Oil | Conventional Natural Gas(3) (other than Solution Gas) | Conventional Natural Gas (Solution Gas) | Natural Gas Liquids | Barrels of Oil Equivalent(4) | ||||||
| (Mbbl) | (Mbbl) | (MMcf) | (MMcf) | (Mbbl) | (Mboe) | |||||||
| Proved | ||||||||||||
| Developed Producing | 2,530 | 315 | 9,443 | 6,094 | 209 | 5,643 | ||||||
| Developed Non-Producing | 164 | - | 1,610 | 204 | 30 | 496 | ||||||
| Undeveloped | 4,939 | 466 | - | 16,516 | 224 | 8,381 | ||||||
| Total Proved | 7,632 | 782 | 11,053 | 22,813 | 463 | 14,520 | ||||||
| Probable | 5,678 | 532 | 2,430 | 18,136 | 281 | 9,919 | ||||||
| Total Proved plus Probable | 13,310 | 1,313 | 13,483 | 40,949 | 744 | 24,439 | ||||||
(1) Reserves are presented on a "company gross” basis, which is defined as Prairie Provident's working interest (operating and non-operating) share before deduction of royalties and without including any royalty interest of the Company.
(2) Based on the Sproule December 31, 2024 forecast prices and costs. Sproule's commodity price forecasts as of December 31, 2024, which were used in the Trimble Report, can be found at www.sproule.com/price-forecast/.
(3) Including both non-associated gas and associated gas but excluding solution gas (gas dissolved in crude oil).
(4) Oil equivalent amounts have been calculated using a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil. See "Cautionary Statements - Barrels of oil equivalent" below.
(5) Columns may not add due to rounding of individual items.
Net Present Values of Future Net Revenue Before Income Taxes Discounted at (%/year) (1)(2)(3)(4)(5)
The following table is a summary of the estimated net present values of future net revenue (before income taxes) associated with Prairie Provident's reserves as at December 31, 2024, discounted at the indicated percentage rates per year, as evaluated in the Trimble Report.
| Reserves Category | 0% | 5% | 10% | 15% | 20% | |||||
| (MM$) | (MM$) | (MM$) | (MM$) | (MM$) | ||||||
| Proved | ||||||||||
| Developed Producing | -20.5 | 31.6 | 38.5 | 37.5 | 35.0 | |||||
| Developed Non-Producing | 7.4 | 6.0 | 4.9 | 4.1 | 3.5 | |||||
| Undeveloped | 227.2 | 177.3 | 142.2 | 116.6 | 97.4 | |||||
| Total Proved | 214.2 | 214.9 | 185.5 | 158.2 | 136.0 | |||||
| Probable | 300.2 | 208.8 | 151.6 | 114.8 | 90.0 | |||||
| Total Proved plus Probable | 514.4 | 423.7 | 337.2 | 273.0 | 226.0 | |||||
(1) Based on the Sproule December 31, 2024 forecast prices and costs. Sproule's commodity price forecasts as of December 31, 2024, which were used in the Trimble Report, can be found at www.sproule.com/price-forecast/.