CALGARY, Alberta, July 17, 2019 (GLOBE NEWSWIRE) — Prairie Provident Resources Inc. (“Prairie Provident”, “PPR” or the “Company”) is pleased to provide an operational update outlining the successful initial results from a new well, which supports the Company’s established asset base within the southern portion of its core Princess area. In addition, the Company is pleased to share select preliminary Q2 2019 unaudited financial and operating highlights. Full Q2 2019 results are expected to be available and announced on August 8, 2019 in connection with the SEDAR filing of Prairie Provident’s interim Financial Statements and related Management’s Discussion and Analysis (“MD&A”) for the three and six months ended June 30, 2019.
Princess Area New Well Results
PPR’s most recent well in the southern portion of its Princess acreage was completed and brought on production in June 2019. Over the first three weeks being on production, the well averaged approximately 250 barrels of oil per day plus an associated 2.7 mmcf per day of natural gas. With a total capital cost of approximately $1.6 million to drill, complete, equip and tie-in, the well is expected to pay out after ten months under current commodity price assumptions. This demonstrates the Company’s ability to target higher-value oil and liquids-weighted drilling locations. Within the Princess area, PPR has an inventory of nine additional potential Lithic Glauconite drilling opportunities1 for future development, as well as a further eight liquids-rich Ellerslie and three Detrital potential drilling opportunities in the area.
Incorporating volumes from this newest Princess well, the Company’s current corporate production is estimated at approximately 6,500 boe/d based on field receipts, which is at the upper end of PPR’s full year 2019 production guidance.
Preliminary Select Q2 2019 Highlights (Unaudited)
Based on field receipts and unaudited financial results, PPR is pleased to provide select preliminary Q2 2019 results that continue the trend of generating adjusted funds flow1 that can be allocated towards our budgeted capital expenditures. During the quarter, PPR invested approximately $3.2 million in capital, which contributed to a 7% increase in average production from Q1 2019, to an average of 6,380 boe/d (69% oil and liquids) for Q2 2019. The Company anticipates that adjusted funds flow1 of approximately $6 million, or $0.03 per share, was generated in Q2 2019, which positions PPR well to fund its budgeted 2019 capital program. As at June 30, 2019, net debt1 totaled approximately $116 million, representing a $2 million quarter-over-quarter decrease from March 31, 2019.
2019 Guidance Reconfirmed
The Company is pleased to reconfirm its full-year 2019 guidance, with estimates unchanged from those set out in PPR’s year end 2018 news release dated March 27, 2019.
Prairie Provident’s efficient and disciplined 2019 capital budget of $14.2 million is expected to be funded with internally-generated adjusted funds flow. Management and the board will continuously review, and as needed adjust, the capital budget considering commodity prices, economics and market opportunities. The Company remains focused on responsibly managing its inventory of high-quality drilling locations, capital spending and asset retirement obligations, while seeking to enhance per share production, reserves, and adjusted funds flow for shareholders.
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 the Michichi and Princess areas in Southern Alberta targeting the Banff, the Ellerslie and the Lithic Glauconite formations, along with an established and proven waterflood project at our Evi area 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.