CALGARY, Alberta – Prairie Provident Resources Inc. (“Prairie Provident” or the “Company”) announces that its wholly-owned subsidiary, Lone Pine Resources Inc. (“LPRI”), did not receive a favourable decision in its arbitration claim under the North American Free Trade Agreement (NAFTA), arising from actions taken by the Government of Quebec in 2011 to cancel, without compensation, certain oil and gas rights that had been held by Prairie Provident Resources Canada Ltd. LPRI considered that the actions in question were a violation of NAFTA, and sought compensation for sunk costs and lost development opportunity. In a majority decision, two of the three members of the arbitral tribunal for the case determined that Quebec’s actions did not violate NAFTA. In a dissenting decision, the third tribunal member determined that Quebec’s actions did constitute a violation of NAFTA.
The Company had not factored the receipt of any proceeds from the NAFTA claim into its business plan for 2022 or any future period.
Costs of the NAFTA proceeding were borne by the respective parties. Prairie Provident has expensed in prior periods the majority of legal and other related fees incurred to date, and expects that any further costs will not be material.
Further information regarding the NAFTA case is provided in the Company’s Annual Information Form for the year ended December 31, 2021, which is filed on SEDAR.