Prairie Provident Resources Announces Fourth Quarter and Year-End 2024 Financial and Operating Results, 2024 Year-End Reserves and Basal Quartz Update
CALGARY, Alberta, April 01, 2025 (GLOBE NEWSWIRE) -- Prairie Provident Resources Inc. ("Prairie Provident" or the "Company") (TSX:PPR) announces its operating and financial results for the fourth quarter and year ended December 31, 2024 and year-end reserves. Prairie Provident's audited annual consolidated financial statements and related Management's Discussion and Analysis (MD&A) for the year ended December 31, 2024 and Annual Information Form, dated March 31, 2025 for the same period are available on the Company's website at www.ppr.ca and filed on SEDAR+ at www.sedarplus.ca.
2024 ANNUAL HIGHLIGHTS
In the first quarter of 2024, the Company sold its Evi assets in northern Alberta and certain non-core assets located in the Provost area of Central Alberta. Net proceeds of approximately CAD$24.2 million were received from these dispositions, with CAD$20.0 million used to reduce indebtedness under the Company's senior secured note facility.
In October 2024, the Company completed a rights offering raising aggregate gross proceeds of $12.0 million (the "Rights Offering").
The net proceeds from the Rights Offering were used to retire indebtedness and drill two Basal Quartz horizontal wells in Prairie Provident's Michichi core area. The Company reported IP60 (initial 60-day average production) rates on the two wells of approximately 333 boe/d (221 bbl/d of medium crude oil and 674 Mcf/d of natural gas) and approximately 305 boe/d (189 bbl/d of medium crude oil and 697 Mcf/d of natural gas), respectively.
For the year ended December 31, 2024, production averaged 2,310 boe/d (56% liquids).
Operating netback1 for the year was $9.8 million ($11.57/boe) before the impact of derivatives in 2024, or $9.3 million ($11.00/boe) after realized losses on derivatives.
Operating expenses were $32.98 per boe in 2024.
As at December 31, 2024, net debt1 totaled CAD$62.8 million, comprised of CAD$50.3 million under the senior secured note facility, CAD$5.2 million under its second lien notes (including deferred interest paid-in-kind) and a CAD$7.3 million working capital deficit.
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1 Operating netback and net debt are non-GAAP financial measures and are defined below under "Non-GAAP and Other Financial Measures".
FOURTH QUARTER 2024 AND 2025 YEAR TO DATE FINANCIAL AND OPERATIONAL HIGHLIGHTS
Production averaged 2,385 boe/d (57% liquids) for the fourth quarter of 2024.
Fourth quarter 2024 operating netback1 before and after the impact of derivatives was $4.0 million ($18.05/boe).
Net capital expenditures1 for the fourth quarter of 2024 of $9.0 million were primarily associated with the Company's Basal Quartz drilling activities.
In February and March of 2025, the Company completed a brokered equity financing raising aggregate gross proceeds of $8.67 million to facilitate further development in the Basal Quartz formation.
FINANCIAL AND OPERATING SUMMARY
Three Months EndedDecember 31,
Twelve Months EndedDecember 31,
($000s except per unit amounts)
2024
20232
2024
20232
Production Volumes
Crude oil and condensate (bbl/d)
1,298
2,049
1,226
2,190
Natural gas (Mcf/d)
6,107
7,374
6,093
7,579
Natural gas liquids (bbl/d)
69
135
68
105
Total (boe/d)
2,385
3,413
2,310
3,558
% Liquids
57%
64%
56%
64%
Realized Prices
Crude oil and condensate ($/bbl)
83.16
87.12
85.40
88.50
Natural gas ($/Mcf)
1.49
2.10
1.53
2.55
Natural gas liquids ($/bbl)
53.93
43.08
59.92
53.05
Total ($/boe)
50.65
58.54
51.15
61.46
Operating Netback($/boe)
Realized price
50.65
58.54
51.15
61.46
Royalties
(2.58
)
(11.00
)
(6.60
)
(9.14
)
Operating costs
(30.02
)
(36.45
)
(32.98
)
(34.14
)
Operating netback
18.05
11.09
11.57
18.18
Realized gains (losses) on derivatives
—
(0.96
)
(0.57
)
(0.72
)
Operating netback, after realized gains (losses) on derivatives
18.05
https://www.benzinga.com/pressreleases/25/04/g44578261/prairie-provident-resources-announces-fourth-quarter-and-year-end-2024-financial-and-operating-res
