Prairie Provident Resources Inc. (“Prairie Provident” or the “Company”) is pleased to announce strong production results from its three-well Basal Quartz (“BQ”) horizontal drilling program in the Michichi area of Central Alberta during the first quarter of 2025. The Company also announces financial and operating results for the first quarter ended March 31, 2025.
SUCCESSFUL RESULTS FROM BASAL QUARTZ DRILLING PROGRAM
The Company successfully drilled and completed three BQ horizontal wells that are now all on production. The wells were executed within budget and continue to demonstrate the high-quality geological and reservoir characteristics of the Michichi BQ play.
Total Company sales production for the first week of May 2025 averaged 3,467 boe/d (62.9% liquids) 1, of which 1,567 boe/d (69.0% liquids)2 was from the three BQ wells drilled during the first quarter of 2025.
These recent three wells validate Prairie Provident’s excitement with the emerging BQ/Ellerslie play on its Michichi lands. Direct offsetting operational activity continues to be strong. Legacy vertical well control, available 3D/2D seismic data, and offset drilling activity are important factors in de-risking the Michichi BQ play. Prairie Provident has identified more than 40 potential drilling opportunities targeting medium crude oil on its Michichi lands. 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.
Prairie Provident’s interim financial statements for the first quarter ended March 31, 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. Financial and operating highlights for the period include:
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 BQ formation at Michichi.
In Q1 2025, the Company drilled three gross (3.0 net) new wells in the BQ formation. These wells were completed and brought on production in April 2025.
Production averaged 2,221 boe/d (58% liquids)1 for Q1 2025, which was 16% or 415 boe/d lower than Q1 2024, primarily due to the sale of the Company’s former Evi CGU in Q1 2024 and natural production declines.
Q1 2025 operating expenses were $29.64 boe/d, a decrease of 17% or $6.15 per boe/d from Q1 2024, principally due to the sale of the Evi CGU and certain Provost properties in Q1 2024 which experienced higher operational costs and partially offset by increases in workover costs.
Q1 2025 operating netback2 before the impact of derivatives was $3.7 million ($18.38/boe), and $3.7 million ($18.38/boe)after realized losses on derivatives, a 74% and a 115% increase, respectively, relative to Q1 2024. The increase was a result of slightly higher realized pricing, lower royalties and operating costs and no realized losses on derivatives.
Net loss totaled $6.1 million in Q1 2025, a $1.2 million increase compared to Q1 2024. The increase was due to lower petroleum and natural gas sales, higher G&A expenses, impairment expense and finance costs offset by lower operating expenses.