CALGARY, Alberta, July 30, 2018 (GLOBE NEWSWIRE) — Prairie Provident Resources Inc. (“Prairie Provident”, “PPR” or the “Company”) is pleased to provide an operational update on successful drilling and completion results from its core Princess area. Corporate average daily production based on field estimates for the week ending July 27, 2018 was approximately 6,000 boe/d (74% liquids), a 30% increase over average daily Q1 2018 production.
Based on current and projected production rates, Prairie Provident anticipates full-year production to be well within its 2018 guidance range of 5,200 to 5,600 boe/d. Prairie Provident’s full-year 2018 capital budget remains consistent with the original guidance of $26 million. After bringing the Princess-5 well (defined hereunder) on-stream, the Company has approximately 22% of its 2018 capital budget available for further development.
Princess Drilling Exceeds Expectations
On July 20, 2018, Prairie Provident brought on production its recently drilled 100% working interest (“WI”) 102/13-26-020-11W4 well (“Princess-4”), following up its successful 102/13-24-020-11W4** well (“Princess-1”) that came on production in May 2018. Princess-4 was drilled using a 1.5-mile lateral, targeting the same Lithic Glauconite (“Glauc”) formation as Princess-1. Princess-4 is currently producing at a constrained rate of approximately 900 boe/d (85% liquids).
Princess-1 commenced production on May 7, 2018, averaging 830 boe/d (77% liquids) for producing days in May, 950 boe/d (79% liquids) in June and 940 boe/d (75% liquids) in July. Based on public production data, the well was one of the top 10 non-resource oil producing wells in Alberta for the month of May 2018.
The cost to bring the five Glauc wells drilled in 2018 on-stream averaged approximately $1.7 million per well. Based on current production rates and netbacks, Princess-1 and Princess-4 could achieve payout in approximately three months, delivering the strongest economics in PPR’s portfolio of properties.
In July 2018, an exploratory Glauc well (100% WI) was also drilled in a southern block of prospective lands at 103/14-12-019-11W4 (“Princess-5”) targeting a new Glauc channel. Starting July 9, 2018, Princess-5 flow-tested over three days and produced at an average flow-back rate of 770 boe/d (56% liquids) during the final 24 hours. The flow test result shows similar characteristics as Princess-1 and Princess-4. The Company anticipates having Princess-5 on production in August.
PPR has 33,000 acres of undeveloped lands in the Princess area. Production and test rates from these recently drilled wells are significantly higher than PPR management’s type curve. Based on results to date, management anticipates improved reserves and economics in the Princess area.
The Company cautions that the short-term production test rates disclosed in this news release are preliminary in nature and may not be indicative of stabilized on-stream production rates or of future ratios between product types. The test results are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. In addition, fluid recovery rates during testing includes recovery of load fluids used in well completion stimulation operations. Actual results will differ from those realized during testing, and the difference may be material.
ABOUT PRAIRIE PROVIDENT
Prairie Provident is a Calgary-based company engaged in the exploration and development of oil and natural gas properties in Alberta. The Company’s strategy is to grow organically in combination with accretive acquisitions of conventional oil prospects, which can be efficiently developed. Prairie Provident’s operations are primarily focused at Wheatland and Princess in Southern Alberta targeting the Ellerslie and the Lithic Glauconite formations, along with an early stage waterflood project at Evi in the Peace River Arch. Prairie Provident protects its balance sheet through an active hedging program and manages risk by allocating capital to opportunities offering maximum shareholder returns.