CALGARY, AB – Prairie Storm Resources Corp. (“Prairie Storm” or the “Company”) (TSXV: PSEC) is pleased to report its audited financial and operating results for the quarter and year ended December 31, 2020.
Selected financial and operating information is outlined below and should be read in conjunction with Prairie Storm’s audited annual consolidated financial statements and related management’s discussion and analysis for the three and twelve months ended December 31, 2020, which are available at the Company’s SEDAR profile at www.sedar.com.
Financial and Operating Highlights
Financial Summary
Three months ended |
Year ended |
|||||||
(Thousands, except per share amounts or as otherwise stated) |
Dec 31, 2020 |
Dec 31, 2019 |
Dec 31, 2020 |
Dec 31, 2019 |
||||
OPERATING |
||||||||
Production |
||||||||
Oil (bbls/d) |
582 |
776 |
623 |
840 |
||||
Liquids (bbls/d) |
502 |
569 |
534 |
415 |
||||
Natural gas (mcf/d) |
5,585 |
6,253 |
5,880 |
6,659 |
||||
Oil equivalent (boe/d) |
2,015 |
2,387 |
2,137 |
2,365 |
||||
Average realized pricing |
||||||||
Oil ($/bbl) |
$ |
48.52 |
$ |
64.41 |
$ |
42.64 |
$ |
65.80 |
Liquids ($/bbl) |
20.65 |
18.03 |
15.61 |
22.00 |
||||
Natural gas ($/mcf) |
2.68 |
2.51 |
2.21 |
1.77 |
||||
Blended ($/boe) |
$ |
26.59 |
$ |
31.81 |
$ |
22.40 |
$ |
32.23 |
Netbacks per boe |
||||||||
Production revenue |
$ |
26.59 |
$ |
31.81 |
$ |
22.40 |
$ |
32.23 |
Processing income |
0.41 |
0.66 |
0.85 |
0.88 |
||||
Royalties |
(2.33) |
(3.01) |
(2.10) |
(2.86) |
||||
Field operations |
(14.09) |
(12.24) |
(11.38) |
(13.79) |
||||
Transportation and marketing |
(0.06) |
(0.10) |
(0.07) |
(0.07) |
||||
Field netbacks(1) |
10.52 |
17.12 |
9.70 |
16.39 |
||||
Realized gain (loss) on commodity contracts |
0.60 |
(0.36) |
2.77 |
0.39 |
||||
Operating netbacks(1) |
$ |
11.12 |
$ |
16.76 |
$ |
12.47 |
$ |
16.78 |
Three months ended |
Year ended |
|||||||
(Thousands, except per share amounts or as otherwise stated) |
Dec 31, 2020 |
Dec 31, 2019 |
Dec 31, 2020 |
Dec 31, 2019 |
||||
FINANCIAL |
||||||||
Cash flow from operating activities |
$ |
859 |
$ |
3,316 |
$ |
6,185 |
$ |
9,991 |
per share – basic and diluted |
0.01 |
0.04 |
0.08 |
0.13 |
||||
Adjusted funds flow (1) |
1,382 |
2,825 |
6,327 |
11,029 |
||||
per share – basic and diluted |
0.02 |
0.04 |
0.08 |
0.14 |
||||
Net loss |
(1,637) |
(824) |
(19,059) |
(1,780) |
||||
per share – basic and diluted |
(0.02) |
(0.01) |
(0.24) |
(0.02) |
||||
Capital expenditures |
77 |
562 |
238 |
6,481 |
||||
Shares outstanding |
||||||||
weighted average – basic and diluted |
88,693 |
76,332 |
79,439 |
76,332 |
||||
period end |
147,410 |
76,332 |
147,410 |
76,332 |
(1) Non-IFRS Measures |
Message to Shareholders
The Company completed its public listing process at the conclusion of a tumultuous year for the energy sector. On December 21, 2020, the Company’s shares began trading on the TSXV. In response to volatile market conditions and the sharp decline in global commodity prices during the course of 2020, Prairie Storm undertook several measures to protect its balance sheet, maintain liquidity and preserve long term value for shareholders.
While production in the fourth quarter of 2020 and the full year of 2020 was marginally down from the equivalent periods of 2019, the Company did not drill or complete any wells during 2020 and expended only minimal capital.
With operatorship of three waterflooded oil units, our asset base demonstrated a moderate decline profile that allowed the Company to preserve a strong balance sheet. The Company ended 2020 with no debt and a positive working capital balance in excess of $4.5 million.
The Company also undertook measures to reduce and manage its cost structure which enabled it to lower its field operating costs by over $2.00/boe for the full year.
The prudent measures undertaken in 2020 to limit spending and control costs have allowed the Company to enter 2021 in a strong financial position. With no debt and improved operating netbacks the Company has significant flexibility in managing its growth profile in the future by capitalizing on improving commodity pricing.
On behalf of our employees, management team and Board of Directors, we would like to thank our shareholders for their ongoing support.
About Prairie Storm Resources Corp.
Prairie Storm is a Canadian oil company with a largely contiguous land base focused on sustainable growth of its high netback, low decline oil assets through water flood enhanced recovery methods and exploitation of the bioturbated Cardium and Glauconitic formations. Prairie Storm has no debt and a positive working capital position. The shares of the Company trade on the TSX Venture Exchange under the symbol “PSEC”.