Prairie Provident Resources Inc. ("Prairie Provident" or the "Company") (TSX:PPR) announces its financial and operating results for the second quarter of 2025. The Company’s interim financial statements for the three and six months ended June 30, 2025 and related Management’s Discussion and Analysis (“MD&A”) are available on our website at www.ppr.ca and filed on SEDAR+ at www.sedarplus.ca.
SECOND QUARTER 2025 FINANCIAL AND OPERATING HIGHLIGHTS
In late April 2025, the Company brought on production the three 100% working interest Basal Quartz (“BQ”) wells drilled in Q1 2025.
Production averaged 2,762 boe/d (62% liquids)1 for Q2 2025, which was 35% or 717 boe/d higher than Q2 2024, and 24% or 541 boe/d higher than Q1 2025, due to the increased BQ production.
Q2 2025 operating expenses were $25.37 boe/d, a decrease of 35% or $13.99 per boe/d from Q2 2024, principally due to the impact of higher production volumes on fixed operating expenses.
Q2 2025 operating netback2 was $4.9 million ($19.45/boe), a 634% increase, relative to Q2 2024. The increase was a result of higher production in Q2 2025 and lower operating expenses on a per boe basis, offset by weakened crude oil commodity prices.
Net loss was $6.5 million in Q2 2025, a $0.4 million reduction compared to Q2 2024. The decrease was due to higher operating netback, foreign exchange translation differences and lower general and administrative expenses, offset by higher impairment expenses, depletion and depreciation and finance costs.
In early June 2025, the Company received additional funding of US$0.6 million through an issuance of additional Second Lien Notes to its current lender.
OUTLOOK
Prairie Provident continues to be excited with the emerging BQ/Ellerslie oil play on its Michichi lands. Direct offsetting operational activity remains strong. To date, Prairie Provident has drilled five 100% working interest Basal Quartz wells on its Michichi land base. The Michichi BQ play is a statistical play with variable reservoir and geological rock characteristics. The Company’s Michichi core area consists of several defined geological channel systems that Prairie Provident is actively pursuing. This supports the need for additional delineation drilling on the Company’s land base. Prairie Provident has identified approximately 50 potential drilling opportunities targeting medium crude oil on its Michichi lands. Legacy vertical well control, extensive 3D/2D seismic data, and offset drilling activity are important factors in de-risking the Michichi BQ play. The Company owns and controls key Michichi infrastructure, which provides a competitive advantage for the future development of this play, and has sizeable tax pools, including approximately $330 million of non-capital losses.