CALGARY, Alberta – Prairie Provident Resources Inc. (“Prairie Provident”, “PPR” or the “Company”) announces our operating and financial results for the first quarter ended March 31, 2023. PPR’s interim financial statements and related Management’s Discussion and Analysis (MD&A) are available on our website at www.ppr.ca and filed on SEDAR at www.sedar.com.
MESSAGE TO SHAREHOLDERS
Patrick McDonald, Interim President and CEO commented: “The operations team has done an excellent job of maintaining production levels through the first quarter of 2023 while deploying minimal capital. The Company continues to pursue non-core asset sales and other transactions to further increase liquidity and allow the Company to carry out a meaningful low risk, low cost capital program over the remainder of 2023 and into 2024. We look forward to providing further updates in the near term.”
FIRST QUARTER 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS
- Production averaged 3,733 boe/d (63% liquids) for the first quarter of 2023, consistent with the fourth quarter of 2022 (3,753 boe/d), in spite of capital constraints. The Company anticipates that the recapitalization will provide additional liquidity that will allow the Company to increase well reactivations and production and facility optimizations.
- First quarter 2023 operating netback1 before the impact of derivatives was $4.5 million ($13.46/boe), and $3.9 million ($11.69/boe) after realized losses on derivatives, a $2.0 million and $1.7 million decrease from the fourth quarter of 2022, respectively.
- Operating expenses for the first quarter of 2023 decreased by $0.92 per boe of production from the fourth quarter of 2022 principally due to capital discipline. The restoration of production as a result of the implementation of renewed well servicing and production optimization activities along with reduced cost of electricity is expected to improve operating netbacks during the balance of 2023.
- Net capital expenditures1 for the first quarter of 2023 of $0.1 million were largely directed towards critical operations in Evi, Princess and Michichi.
1 Operating netback and net capital expenditures are non-GAAP financial measures and are defined below under “Non-GAAP and Other Financial Measures”.
FINANCIAL AND OPERATING SUMMARY
|Three Months Ended|
|($000s except per unit amounts)||March 31,
|Light & medium crude oil (bbl/d)||1,738||1,715|
|Heavy crude oil (bbl/d)||532||588|
|Conventional natural gas (Mcf/d)||8,810||8,014|
|Natural gas liquids (bbl/d)||100||114|
|Average Realized Prices|
|Light & medium crude oil ($/bbl)||87.29||95.32|
|Heavy crude oil ($/bbl)||75.96||95.40|
|Conventional natural gas ($/Mcf)||3.06||5.03|
|Natural gas liquids ($/bbl)||62.44||69.60|
|Operating Netback ($/boe) 1|
|Realized losses on derivative instruments||(1.77||)||(12.47||)|
|Operating netback, after realized losses
on derivative instruments
1 Operating netback is a Non-GAAP financial measure (see “Non-GAAP and Other Financial Measures” below) calculated as oil and natural gas revenue less royalties less operating costs.