CALGARY, AB – Prairie Storm Resources Corp. (“Prairie Storm” or the “Company”) (TSXV: PSEC) is pleased to report its unaudited financial and operating results for the quarter ended March 31, 2021.
The selected financial and operating information is outlined below and should be read in conjunction with Prairie Storm’s unaudited interim condensed consolidated financial statements and related management’s discussion and analysis as at and for the three months ended March 31, 2021 along with the audited annual consolidated financial statements and related management’s discussion and analysis for the year ended December 31, 2020, which are available under the Company’s SEDAR profile at www.sedar.com.
Financial and Operating Highlights
Financial Summary
Three months ended |
||||
(Thousands, except per share amounts or as otherwise stated) |
Mar 31, 2021 |
Mar 31, 2020 |
||
FINANCIAL |
||||
Production revenue |
$ |
5,956 |
$ |
4,850 |
Cash flow from operating activities |
2,134 |
2,304 |
||
per share – basic and diluted |
0.01 |
0.03 |
||
Adjusted funds flow (1) |
2,343 |
2,058 |
||
per share – basic and diluted |
0.02 |
0.03 |
||
Net income (loss) |
(354) |
2,491 |
||
per share – basic and diluted |
– |
0.03 |
||
Capital expenditures |
225 |
10 |
||
Shares outstanding |
||||
weighted average – basic and diluted |
147,410 |
76,332 |
||
period end |
147,410 |
76,332 |
||
OPERATIONAL |
||||
Production |
||||
Oil (bbls/d) |
542 |
703 |
||
Liquids (bbls/d) |
480 |
574 |
||
Natural gas (mcf/d) |
5,442 |
6,144 |
||
Oil equivalent (boe/d) |
1,926 |
2,302 |
||
Average realized pricing |
||||
Oil ($/bbl) |
$ |
64.09 |
$ |
47.86 |
Liquids ($/bbl) |
29.66 |
12.78 |
||
Natural gas ($/mcf) |
3.17 |
2.00 |
||
Blended ($/boe) |
34.36 |
23.15 |
||
Netbacks per boe |
||||
Production revenue |
34.36 |
23.15 |
||
Processing income |
0.65 |
0.67 |
||
Royalties |
(3.54) |
(2.00) |
||
Field operations |
(12.62) |
(10.70) |
||
Transportation and marketing |
(0.06) |
(0.08) |
||
Field netbacks (1) |
18.79 |
11.04 |
||
Realized gain (loss) on commodity contracts |
(0.87) |
2.50 |
||
Operating netbacks (1) |
17.92 |
13.54 |
(1) Non-IFRS measures. |
Message to Shareholders
The Company completed its public listing process at the end of a tumultuous year for the energy sector, with its shares beginning to trade on the TSXV on December 21, 2020. In response to volatile market conditions and the sharp decline in global commodity prices during the course of 2020, the Company undertook many measures to protect its balance sheet, maintain liquidity and preserve long term value for shareholders.
Coming into 2021, the Company elected to maintain its diligence and prudence in managing its capital program and preserving its balance sheet strength. The Company chose to defer activity until later in the year with a view to establishing more permanence to the welcome rise in commodity pricing experienced during the first quarter of 2021.
Despite minimal capital expenditures during the first quarter of 2021, which amounted to less than ten percent of adjusted funds flow, production in the first quarter of 2021 declined only four percent from the fourth quarter of 2020.
With operatorship of three waterflooded oil units, our asset base demonstrated a moderate decline profile that allowed the Company to further strengthen its strong balance sheet. The Company ended the first quarter of 2021 with no debt and a positive working capital balance in excess of $6 million.
The recovery in commodity pricing in the first quarter of 2021 versus the comparable period in 2020 has been significant. On a boe basis, the Company enjoyed a 48% increase in production revenue and a 70% increase in field netbacks.
The prudent measures undertaken to limit spending and control costs have put the Company in a strong financial position. With no debt and a dramatic improvement in its field netbacks, the Company has significant flexibility in managing its growth profile in the future by capitalizing on vastly improving commodity pricing.
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”.