Prairie Provident Resources Inc T.PPR

Debt/Production can be better

[Amameal]

After the acquisition of Marquee, the production is approximately 7,700 boe/d. If PPR returns to that production level, the debt is not so high imho.

[Yuppii]

Won't happen without significant capital spending the assests have been too neglacted past 2 years. Thats why production increase has been so marginal since price rebound. The Evi property is on a steady decline even with the waterflood, there is next to no upside there without new wells, large portion of capital has to been spent on liabilities/decomissioning as that has been skipped past two

[filefish]

yuppi, you are correct. Aside from 1 year of bad pricing due to Covid, its been several years of  poor execution by management and poor oversight by the B.O.D. that has lead to the siutation we are in now. Thats why I feel that the current slate  should all be forced to resign. If not for Goldmans support up until they gave up their investment , PPR would be in liquidation by now. The

[Yuppii]

Goldman has been their lifeline and they have used it to perfection there is zero consequence for being terrible at your position within this operation. My postion on NAFTA has been if thats needed to be a bailout the ship has already sunk, that should be free cash to develop with if it evers happens but reality now is it should just go towards paying debt as alot of vendors are looking for money

[filefish]

Yes, agree. Wonder what convinced the new CEO to sign up? I f guess if he can make it thru the rest of this year, thats longer than the last one's tenure.

[Justhalffull]

I just hope PPR doesn't pay him like Gran Tierra did.   He was there for 16 months, and got $287988 in salary, $179862 as a bonus, $187373 in stock options, $753554 as stock and $12597 as other compensation.  Total compensation $1421377 for 16 months.  He does not seem to stay long.  Before PPR he was 3 months at SpectrumH2, 16 months at Gran Tierra, 18 months at Strategic

[Yuppii]

Yea i thought the timeline of his last positions was alarming due to how short they were. He will be paid well all other positions in PPR management are overpaid for no success I bet we will just shake our head once we see it as it won't be a surprise

[Amameal]

Well, he is in the middle of 40 years old. He can really do something if he want.

[stiffupperlip]

Yeah the company is in a crisis so lets send in a deputy to do the work of a general.

[energee]

The debt is PPR's biggest issue. Perhaps the new guy can find a way to convert some debt to equity and do a Saturn Energy (SOIL.V) type deal who just bought a pile of Crescent Point's older Sask. assets. Same lender there - Prudential I believe. https://saturnoil.com/invest/news-releases/saturn-oil-gas-inc-announces-transformational-light-oil-asset-acquisition-of-6-700-boe-d-to-become

[Amameal]

No, it is such a bad idea to dilute at the current price level. We have a market cap of 8 million. A mere 10% of debt will take away over 50% of equity from existing shareholders. It exactly is what lousy management will do.   The way to success is to continue to reduce the cost. Increase production as fast as possible and do a little more hedge when WTI price hit $85.   Anyway

[filefish]

If management was as good as mediocre, they wouldnt have made this stupid decision , effectively crippling revenues in the face of higher oil prices: Subsequent to March 31, 2021, the Company entered into the following commodity derivative contracts: Crude Oil Collars January 1, 2023 - March 31, 2023 US$ WTI 1,100 $35.00 / $40.00/ $50.00  

[Amameal]

Agree. It is a stupid decision to hedge at such a low price from a retrospective perspective. But they do not have a crystal ball to predict the oil price. An effective measure to alleviate the consequence is to increase production quickly, imo—Anyway, who had not made a mistake.

[Yuppii]

Increasing production quickly requires funds that PPR really don't have, I'm sure they will do some production increases but nothing like other companies are doing right now with the price of oil