Prairie Provident Resources Inc T.PPR

What Next?

[energee]

The February 4 close was $0.025. Since that date the share price has more than doubled to ~$0.06 on 22.5M shares. No news from the Co.

IMO, this SP increase is a result of a number of possible reasons:

1. Momentum from rising commodity prices (AECO gas at $6.71 CDN on Feb 11; oil price now at mid $50's USD).
2. Increased market interest in the sector.
3. A possible deal in the works (eg. recap).
4. A private accumulator of the stock who wants it all.
5. Games being played.
6. A potential NAFTA/USMCA ruling at some point, outcome unknown (assumes these NAFTA lawyers figure out how to type a decision at some point).
7. Great new wells or a growth plan not yet apparent due to absence of information from the Co as their Corporate Presentation is ~1 year old.

[filefish]

Energee, a good summary of possible reasons for the stock movement in the past 2 weeks. Keep in mind that even after all of those shares changed hands, it only represents less than $1mil of investment. We also have no idea if higher prices are materially helping their cash flow since hedging data available to the public is not current. At this point I am going with your point #5 - games being

[Justhalffull]

From their Sep 30 2020 financials we know they have 2 three way collars on as hedges.  one for 200 b/d expiring Mar 31. 45.50 / 52.00 / 65.00 one for 600 b/d expiring Dec 31. 40.00 / 50.00 / 62.45 with recent rise in oil prices, both of these hedges are good right now. Hard to say if they will leave these on now that prices are up.  They could close them out, maybe have done so

[sassysarah]

thanks. that is helpful. I should have looked. This is positive. not a lot. With increased production we should see them generate a ton of cash. fingers crossed. I have been critical of the management (of all the different parties) in the past. But holding this together and not betting the wrong way.... I may cut them a little slack. *****&******* Of course there will be games - this was

[Justhalffull]

I don't expect to see any increase in production.  Natural declines likely to see daily production dip to at least the 3000 boe.  This due to shut ins, and decreased capex due to financial pressures to reduce debt.  So not likely any new production this quarter.  Depending on how good (bad) they do with Q4 (should be out soon) we will have an idea of whether or not they can

[filefish]

They are probably at around 4,000boe/d now with flush production coming on stream soon from the new Princess well(s). They will survive if Goldman and or PCEP want them to survive.  

[energee]

I agree. In an up-trending market, Goldman or PCEP would sure want a win from here  - just like all shareholders.

[Justhalffull]

From their Sep 30 2020 financials we know they have 2 three way collars on as hedges.@ one for 200 b/d expiring Mar 31. 45.50 / 52.00 / 65.00 one for 600 b/d expiring Dec 31. 40.00 / 50.00 / 62.45 with recent rise in oil prices, both of these hedges are good right now. Hard to say if they will leave these on now that prices are up. @They could close them out, maybe have done so already