Prairie Provident Resources Reports Strong 2024 Financial Growth
Prairie Provident Resources Financial Overview
Prairie Provident Resources Inc., a leading player in the oil and gas sector, has recently shared its financial results for the year ending December 31, 2024. The company has made significant strides in production and financial health, driven by a focus on optimizing its assets and managing development risks.
Key Annual Highlights
In early 2024, Prairie Provident successfully sold its Evi assets and other non-core properties in Alberta. The sale generated approximately CAD$24.2 million, with a large portion being allocated to reduce the company’s senior secured debt. This strategic decision underscores Prairie Provident's commitment to maintaining a robust financial position.
In October of the same year, the company executed a rights offering that raised CAD$12.0 million, further enhancing its liquid assets which allowed for debt retirement along with the drilling of two new Basal Quartz horizontal wells. These wells demonstrated promising initial production rates, significantly contributing to the company's overall output for the year.
Financial Performance
For 2024, Prairie Provident reported an average production rate of 2,310 barrels of oil equivalent per day (boe/d), with liquids comprising 56% of the total output. The operating netback achieved was CAD$9.8 million, equating to $11.57 per boe before derivatives. Operating expenses stood at $32.98 per boe, reflecting careful cost management.
During the fourth quarter alone, production peaked at 2,385 boe/d, and the net capital expenditures focused on advancing the Basal Quartz operations were pegged at CAD$9.0 million. These investments are essential as the company looks towards maximizing returns from its drilling activities.
Reserves and Development Update
The reserves evaluation, conducted by Trimble Engineering Associates Ltd. as of December 31, 2024, indicated strong reserve additions due to ongoing drilling activities within the Basal Quartz formation. The firm added a substantial 0.5 MMboe in reserves to its proved developed producing category through successful drilling programs.
The recent divestment of Evi assets did result in a decrease in total reserves; however, the technological advancements and new wells drilled have allowed Prairie Provident to offset these reductions to some extent. The company’s focus on its core assets has better positioned it for future growth.
Multistage Stimulation Operations
In 2025, Prairie Provident initiated a three-well drilling program in the Michichi area as part of its ongoing development efforts in the Basal Quartz oil play. The drilling program progressed smoothly, with the company encountering favorable reservoir conditions in all three drilled wells. These developments signal a bright future for Prairie Provident as they anticipate bringing these wells into production efficiently.
All three wells are expected to integrate conventional artificial lift methods after successful completion of the multistage fracture stimulation operations. This technical prowess enables the company to harness commitments to environmental consciousness and maximize recovery rates from their operations.
About Prairie Provident Resources
Calgary-based Prairie Provident Resources Inc. is committed to optimizing cash flow from existing assets while investing in low-risk development projects. Their strategic vision aims to provide consistent growth and ensure sustainable energy production.
Frequently Asked Questions
What were Prairie Provident's key financial highlights for 2024?
Prairie Provident achieved an average production of 2,310 boe/d, generating CAD$9.8 million in operating netback.
How did the company manage its debt?
The sale of non-core assets and a successful rights offering significantly helped reduce Prairie Provident's indebtedness.
What were the outcomes of the recent drilling program?
The three-well drilling program resulted in successful well completion and favorable reservoir conditions, boosting reserves.
How does Prairie Provident value its reserves?
The company's reserves are evaluated by an independent firm using forecast prices and costs, and reflected in terms of net present value (NPV).
What is Prairie Provident's strategy moving forward?
Prairie Provident aims to optimize cash flow and invest in low-risk development projects to maintain stable production rates.
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