Prairie Provident's Equity Financing Success and Basal Quartz Operational Update

Prairie Provident Resources Inc. (TSX:PPR) has recently completed the final tranche of its equity financing, raising a total of $8.67 million in aggregate gross proceeds. This successful fundraising will enable the company to drill two additional Basal Quartz horizontal wells in the first quarter of 2025, further advancing its position in the emerging Basal Quartz trend in the Michichi area of Central Alberta. Additionally, the company has provided an operational update on its first two Basal Quartz wells, highlighting their production rates and the estimated payout period for future wells.



The company spud the first Basal Quartz horizontal well, 102/03-19-030-18W4, on October 15, 2024, and brought it on-stream on November 9, 2024, with an on-stream cycle time of 25 days. The well is currently being produced on cleanup with an initial 30-day average production rate ("IP30") of approximately 275 bbl/d of medium crude oil and 850 Mcf/d of natural gas (415 boe/d). The second Basal Quartz horizontal well, 100/15-32-029-18W4, was spud on October 25, 2024, and brought on-stream on November 18, 2024, representing an on-stream cycle time of 24 days. This well is being produced on cleanup and achieved an initial 21-day average production rate of approximately 240 bbl/d of medium crude oil and 800 Mcf/d of natural gas (375 boe/d) through production test facilities.

Prairie Provident has adjusted its Michichi Basal Quartz type curve to reflect the prudent reservoir management being practiced, exhibiting a lower IP30 rate and a more gradual decline rate, resulting in an estimated payout of seven months at December 9, 2024 strip pricing. Both the 102/03-19 and 100/15-32 wells are now producing through permanent Company-operated facilities, allowing continued optimized production rates from both wells.



The company's current production is approximately 2,800 boe/d, and it has identified more than 40 Basal Quartz potential drilling opportunities on its Michichi lands alone. These drilling opportunities are not booked in the most recent independent evaluation of Prairie Provident’s reserves data, effective December 31, 2023. The Company’s existing proved undeveloped reserves bookings at Michichi, as reflected in the 2023 year-end evaluation, consist primarily of Banff formation oil reserves.

The successful completion of the equity financing and the operational update on the Basal Quartz wells demonstrate Prairie Provident's commitment to expanding its production portfolio and optimizing reservoir management. By investing in the Basal Quartz trend, the company is well-positioned to capitalize on the significant potential of this emerging trend in the Michichi area of Central Alberta. As the company continues to develop its Basal Quartz assets, investors can expect to see further growth and value creation from Prairie Provident Resources Inc.