Prairie Provident Resources Announces Operations Update

Core Viewpoint - Prairie Provident Resources Inc. has provided an operational update on its drilling program, highlighting successful drilling activities and production challenges in its Princess and Michichi areas. Group 1: Drilling and Production Updates - The company successfully drilled and completed one Ellerslie multi-leg open hole horizontal well, 102/03-24-018-11W4M, in the Princess core area, with initial production rates of 131 bbl/d of crude oil and 685 Mcf/d of natural gas, leading to a total of 245 boe/d and a peak oil rate of 205 bbl/d [1] - Daily production from the well has increased to approximately 290 boe/d, with 185 bbl/d of heavy oil, although initial production was constrained due to limitations on natural gas takeaway volumes [2] - The company has installed a water disposal facility at 10-23-018-11W4M, which is expected to save approximately $600,000 annually by eliminating produced water trucking and third-party disposal charges [3] Group 2: Challenges and Future Plans - In the Michichi area, two one-mile Basal Quartz horizontal wells were drilled, but both encountered production casing failures during cementing operations, attributed to geo-mechanical factors [4] - The company believes the wells 03-30-30-18W4M and 02-30-30-18W4M are unlikely to be salvageable in their current configuration and is assessing the impact of these events on future drilling designs [5]