Prairie Operating Co. Announces Warrant Exercise Resulting in $24 Million of Proceeds
HOUSTON, Texas — Prairie Operating Co. (NASDAQ: PROP) (referred to as “the Company” or “Prairie”) has announced that Watermill Capital Partners and its affiliates have exercised Series E B Warrants (the “Warrants”), resulting in the acquisition of 4,000,000 shares of common stock. This transaction has generated an impressive $24 million in proceeds.
This recent exercise is a continuation of Watermill Capital Partners’ investment strategy, following a $12 million warrant exercise last year. This action highlights their ongoing confidence and support for Prairie’s strategic growth initiatives. With this warrant exercise completed, all Series E B Warrants have now been fully exercised, and all Series E preferred stock has been converted into common stock. This shift simplifies Prairie’s capital structure and enhances its potential for sustainable long-term growth.
“We are grateful for the confidence and support from Watermill Capital Partners as we work diligently towards our strategic goals. The cash proceeds from this exercise will significantly enhance our growth plans, especially as we kick off the Shelduck South project,” stated Ed Kovalik, Chairman and CEO of the Company.
The Shelduck South development, part of the Genesis Bolt-on Assets, includes an eight-well pad that targets the Niobrara B and C formations across 1,260 mineral acres, with initial production expected to start in the fourth quarter of 2024.
About Prairie Operating Co.
Prairie Operating Co. is an independent energy company based in Houston, publicly traded and focused on the development and acquisition of oil and natural gas resources across the United States. The Company primarily operates in the oil and liquids-rich areas of the Denver-Julesburg (DJ) Basin, with a focus on the Niobrara and Codell formations. Prairie is committed to responsibly developing its resources, aiming to maximize returns through sustainable cash flow, effective growth strategies, and disciplined capital management.
Warrant Overview
The Warrants were initially issued during a private offering of units by Prairie. They have a one-year term and an exercise price of $6.00 per share, playing a significant role in the Company’s financing efforts. It is important 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. Therefore, these shares cannot be sold or transferred in the United States unless they are covered by an effective registration statement or meet 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 illustrates Watermill Capital Partners' ongoing 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?
The Shelduck South project involves developing an eight-well pad targeting the Niobrara B and C formations, with production expected to commence in the fourth quarter of 2024.
5. Where can more information about Prairie Operating Co. be found?
Additional information about Prairie can be found on their official website, where details regarding their operations and projects are available for review.
