RE:New Press Release - Prairie Provident Resources Announces Strategic Asset SalesNow I know why they didnt answer their e-mails.
They sold EVI cheap, but beggars cant be choosy and the $27mil going primarily to debt reduction will reduce interest expense and keep the lenders happy for a while. Aside from the cost savings of operating Evi, they could make up the loss of 900 boe/d with 5 or 6 new Michichi wells, costing maybe $15 mil. ARO reduction is an extra+. Regarding Provost, that sale has Shubham Garg's fingerprint on it. Just guessing , but he likes to negotiate potential upside contingencies while reducing the downside. Having the remaining operations in a small geographic area is good. All in all, I am glad that they made a move to keep the Company going. Now they need to put a competant CEO in place.