Prairie Provident Resources Announces Successful Basal Quartz Drilling Program and First Quarter 2025 Results

Core Insights - Prairie Provident Resources Inc. reported strong production results from its three-well Basal Quartz horizontal drilling program in the Michichi area of Central Alberta during Q1 2025, with all wells now in production [1][2]. Production Results - The three BQ horizontal wells were drilled and completed within budget, showcasing the high-quality geological characteristics of the Michichi BQ play [2]. - Initial production rates for the three wells are as follows: - Well 100/14-32-029-18W4: Peak oil rate of 357 bbl/d, IP30 of 275 bbl/d [3]. - Well 102/13-32-029-18W4: Peak oil rate of 367 bbl/d, IP21 of 328 bbl/d [3]. - Well 100/07-19-030-18W4: Peak oil rate of 585 bbl/d, IP21 of 389 bbl/d [3]. - Total company sales production for the first week of May 2025 averaged 3,467 boe/d, with 1,567 boe/d coming from the three BQ wells [3]. Financial Highlights - For Q1 2025, Prairie Provident reported petroleum and natural gas sales of $11.073 million, with a net revenue of$9.601 million after royalties [6]. - The company experienced a net loss of $6.137 million in Q1 2025, which is an increase from a net loss of$4.945 million in Q1 2024 [6][8]. - Adjusted funds flow for Q1 2025 was $1.782 million, a significant recovery from a negative flow in Q4 2024 [6][8]. Operational Efficiency - Operating expenses for Q1 2025 were$29.64 per boe, a decrease of 17% from Q1 2024, attributed to the sale of higher-cost properties [8]. - Operating netback before derivatives was $3.7 million ($18.38/boe), reflecting a 74% increase compared to Q1 2024 [8]. Future Development Potential - Prairie Provident has identified over 40 potential drilling opportunities targeting medium crude oil on its Michichi lands, supported by existing infrastructure and seismic data [4]. - The company completed a brokered equity financing in early 2025, raising $8.67 million to facilitate further development in the BQ formation [8].