Prairie Operating Co. Secures $24 Million from Warrant Exercise
Prairie Operating Co. Announces Warrant Exercise Resulting in $24 Million of Proceeds
HOUSTON, Texas — Prairie Operating Co. (NASDAQ: PROP) (the “Company” or “Prairie”) has recently revealed that Watermill Capital Partners and its associates exercised Series E B Warrants (the “Warrants”), leading to the purchase of 4,000,000 shares of common stock in the Company. This transaction generated an impressive $24 million in proceeds.
This latest exercise marks a continuation of Watermill Capital Partners’ investment, following a $12 million warrant exercise in the prior year, thereby underscoring their sustained confidence and support towards Prairie’s strategic growth initiatives. With the completion of this warrant exercise, all Series E B Warrants have been fully utilized, alongside the complete conversion of all of the Company’s Series E preferred stock into common stock. This transition contributes to a more straightforward capital structure, bolstering Prairie’s potential for long-term growth.
“We are thankful for the confidence and support from Watermill Capital Partners as we diligently pursue our strategic objectives. The resultant cash proceeds from this exercise will significantly bolster our growth ambitions, particularly as we initiate the Shelduck South project,” commented Ed Kovalik, Chairman and CEO of the Company.
The Shelduck South development, which is part of the Genesis Bolt-on Assets, encompasses an eight-well pad targeting the Niobrara B and C formations over 1,260 mineral acres, with initial production anticipated to commence in the fourth quarter of 2024.
About Prairie Operating Co.
Prairie Operating Co. is an independent energy entity based in Houston that is publicly traded and specializes in the development and acquisition of oil and natural gas resources throughout the United States. The Company’s operations are primarily focused within the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, concentrating on the Niobrara and Codell formations. Prairie is dedicated to the responsible development of its resources, aiming to maximize returns through sustainable cash flow generation, effective growth strategies, and disciplined capital management.
Warrant Overview
The Warrants were originally issued during a private offering of units conducted by Prairie. Featuring a one-year term and a $6.00 per share exercise price, these Warrants have contributed significantly to the Company’s financing efforts. It is essential to note that the common stock issued upon exercising these Warrants has not been registered under the Securities Act of 1933 or applicable state securities laws. Consequently, the offered shares cannot be sold or given away in the United States unless they are covered by an effective registration statement or one of the relevant exemptions from registration requirements.
Contact Information
Investor Relations Contact:
Wobbe Ploegsma
Email: wp@prairieopco.com
Phone: 832.274.3449
Frequently Asked Questions
1. What recent financial action did Prairie Operating Co. take?
Prairie Operating Co. announced that Watermill Capital Partners exercised Series E B Warrants resulting in the purchase of 4,000,000 shares and generating $24 million in proceeds.
2. How does this warrant exercise reflect on Watermill Capital Partners?
This exercise demonstrates Watermill Capital Partners' continued confidence in Prairie’s growth strategy, following a previous exercise of $12 million in warrants.
3. What is the impact of these developments on Prairie's capital structure?
The full exercise of the Series E B Warrants and conversion of Series E preferred stock into common stock simplifies Prairie's capital structure, positioning it favorably for long-term growth.
4. What are the details of the Shelduck South project?
Shelduck South involves the development of an eight-well pad targeting the Niobrara B and C formations, with production expected to begin in the fourth quarter of 2024.
5. Where can more information about Prairie Operating Co. be found?
Information regarding Prairie is available through their official company website, where details about their operations and projects can be reviewed.
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