Prairie Provident Resources Announces Fourth Quarter and Year-End 2023 Financial and Operating Results

CALGARY, AB, April 2, 2024 (GLOBE NEWSWIRE) — Prairie Provident Resources Inc. (“Prairie Provident” or the “Company”) (TSX:PPR) announces its fiscal 2023 fourth quarter ending 2023 and financial results. Announces operating and financial results for the year. Prairie Provident's audited annual consolidated financial statements and related management's discussion and analysis (MD&A) for the year ended December 31, 2023 and annual information form dated April 2, 2024 for the same period are provided by the Company. Available from the website (www.ppr.ca). Submitted to SEDAR+ (www.sedarplus.ca).

2023 annual finance and In operation highlight

• The Company's financial flexibility was enhanced during the year with the completion of the recapitalization and debt-to-equity settlement, which reduced previously outstanding subordinated debt of US$53.4 million (approximately CA$72.0 million). ) was repaid through the issuance of approximately US$53 million. 514.4 million common shares.

• In connection with the reorganization, the Company completed the issuance of US$3.64 million (approximately CA$4.93 million) of second lien notes. Interest on these notes will be paid in kind while our senior secured note facilities are outstanding.

• The Company also raised gross proceeds of C$4 million during the year through a private placement of 44.4 million common shares and warrants to support the reduction of net debt. ¹

• Revenues in 2023 decreased 34% to $79.8 million from $120.6 million in 2022 due to significant declines in crude oil and natural gas prices and reduced production.

• Production averaged 3,558 barrels/day (64% liquids) for the year ended December 31, 2023, down 13% from the 2022 average production of 4,072 barrels/day.

• Netback operation¹ 2023 was $24.8 million ($19.07 per barrel) before the impact of derivatives and $23.8 million ($18.35 per barrel) after realized derivative losses. This compares to operating netback of $54.3 million ($36.54 per barrel) before the impact of derivatives in 2022 and $28.8 million ($19.38 per barrel) after realized losses on derivatives.

• Operating expenses per BOE increased by 8%, from $30.88 in 2022 to $33.25 in 2023. Total operating expenses decreased by $2.7 million year-over-year, even though he faced an increase in fixed costs per BOE due to reduced production.

• Net debt as of December 31, 2023¹ The total amount was C$80.6 million, a decrease of C$67.2 million from December 31, 2022 due to the completion of the reorganization, consisting of C$66.2 million in senior secured notes and C$6.4 million in second lien notes. (including deferred interest), with a working capital deficit of C$8 million.

• During the first quarter of 2024, we further reduced our debt through the sale of the Evi property in northern Alberta and certain non-core assets located in the Provost region of central Alberta. These dispositions resulted in net proceeds of approximately C$24.2 million, of which C$20.0 million was used to further reduce debt under the Company's senior secured debt facilities.

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_{1 Operating netback and net debt are non-GAAP financial measures and are defined under “Non-GAAP and Other Financial Measures” below.}

Financial and operational highlights for the fourth quarter of 2023

• Production in the fourth quarter of 2023 averaged 3,413 barrels per day (64% liquids), down 9% compared to the same period in 2022.

• Netback operational status in Q4 2023¹ Before the impact of derivatives, it was $3.2 million ($10.03/BOE) and after realized losses on derivatives it was $2.9 million ($9.07/BOE), a decrease of $3.4 million and an increase of $0.6 million, respectively, from the fourth quarter of 2022.

• net capital expenditure¹ $0.7 million in the fourth quarter of 2023 was primarily for holding mineral and surface leases.

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_{1 Operating netback and net capital expenditures are non-GAAP financial measures and are defined under “Non-GAAP and Other Financial Measures” below.}

Financial and management overview

_{Note:
1 Operating netback and net debt are non-GAAP financial measures and are defined under “Non-GAAP and Other Financial Measures” below.}

About Prairie Provident

Prairie Provident is a Calgary-based company engaged in the development of oil and natural gas properties in Alberta. Our strategy is to optimize cash flow from existing assets, fund low-risk developments, and limit production declines while maintaining stable cash flow.

For more information, please contact us below.

Prairie Provident Resources Inc.
1100, 640 – 5th Avenue SW
Calgary, Alberta, Canada T2P 3G4
Main phone number: (403) 292-8000
Fax: (403)-292-8001
Email: info@ppr.ca

barrel of oil equivalent

The oil and gas industry commonly expresses production and reserves on a “barrel of oil equivalent” (“boe”) basis, with natural gas volumes expressed at a rate of 6,000 cubic feet per barrel of oil. Its purpose is to bring together oil and natural gas units of measurement on one basis in order to improve analysis of results and comparison with other industry participants. The BOE conversion rate of 6,000 cubic feet per barrel of oil is based primarily on the energy equivalent conversion method applied at the burner tip. This does not represent parity of value at the wellhead or mill gate where Prairie Provident sells its production. Therefore, BOES can be a misleading indicator, especially when used alone. Using a 6:1 conversion ratio can be misleading as a value indicator, given that the value ratio based on the current price of crude oil compared to natural gas is significantly different from the energy equivalent ratio of 6:1. there is.

Non-GAAP and other financial measures

This news release discloses certain financial measures that are “non-GAAP financial measures” or “supplemental financial measures” within the meaning of applicable Canadian securities laws. Such measures do not have a standardized or prescribed meaning under International Financial Reporting Standards (IFRS) and therefore may not be comparable to similar financial measures disclosed by other issuers. Non-GAAP and other financial measures are provided as supplemental information to assist readers in considering our results of operations, but should not be relied upon for comparison or investment purposes. Readers should not consider non-GAAP and other financial measures in isolation or as a substitute for an analysis of our financial results as reported under IFRS. See the “Non-GAAP and Other Financial Measures” section of MD&A for a reconciliation of each non-IFRS measure to the closest IFRS measure.

This news release also contains references to certain metrics commonly used in the oil and gas industry, but these metrics may not be included in the Canadian Oil and Gas Evaluation (COGE) Handbook or under applicable law. has no standardized or prescribed meaning. Such metrics are likewise provided as supplemental information for readers to consider our performance, but should not be relied upon for comparison or investment purposes.

Below is additional information regarding non-GAAP and other financial and oil and gas measures used in this news release.

Netback operation – Operating netback is a non-GAAP financial measure commonly used in the oil and gas industry and is a useful metric to help management and investors assess performance at the oil and gas lease level. Our company believes that. The operating netbacks included in this news release were determined as operating costs by subtracting royalties from oil and gas revenues. Operating netback can be expressed in absolute dollars or per unit. The amount per unit is determined by dividing the absolute value by the total working interest production. Operating netback after profit or loss on derivative products. Operating netbacks are adjusted only for the realized portion of gains and losses on derivatives. musical instrument. Operating netback per BOE and operating netback after realized derivative gains (losses) per BOE are non-GAAP financial ratios.

net debt – Net debt is defined as long-term debt (including principal and deferred interest) plus working capital surplus or deficit. Net debt is a measure commonly used in the oil and gas industry to assess a company's liquidity.

working capital – Working capital is calculated as current assets less payables and accrued liabilities, except for the portion of derivative instruments that is payable within one year. This measure is used to help management and investors understand liquidity at a particular point in time. Portions of derivative instruments that are payable within one year are excluded because management intends to hold the derivative contracts to maturity rather than realize point-in-time value through liquidation. The portion of decommissioning costs that are payable within his one year period are excluded because these costs are discretionary, and the warrant liability is excluded because it is a non-monetary liability. Long-term loans payable that are scheduled to be repaid within one year are excluded because they are reflected in loans payable. Lease liabilities have historically been excluded as they were not recorded on the balance sheet until IFRS 16 Leases was applied on January 1, 2019.

net capital expenditure – Net capital expenditures is a non-GAAP financial measure commonly used in the oil and gas industry and is considered a useful metric to help management and investors evaluate PPR's investment relative to its existing asset base. Our company is thinking. Net capital expenditures includes total capital expenditures, which is the sum of property, plant and equipment expenditures and exploration and evaluation expenditures from the consolidated statement of cash flows, plus capitalized stock-based compensation and acquisitions in business combinations (outflows). is calculated by adding The cash consideration paid for the acquisition of oil and gas property less asset dispositions, net of acquisitions, which are the cash proceeds from the disposition of producing property and undeveloped land.