CALGARY, Alberta, Sept. 10, 2018 (GLOBE NEWSWIRE) -- Prairie Provident Resources Inc. ("Prairie Provident",
"PPR" or the "Company") is pleased to provide an operational update on successful drilling and completion results from its core
Princess area. Corporate average daily production based on field estimates is approximately 5,750 boe/d (75% liquids), with
approximately 150 boe/d of additional production shut-in due to infrastructure capacity constraints at the Princess area.
Based on current and projected production rates, Prairie Provident anticipates full-year production to be within
its 2018 guidance range of 5,200 to 5,600 boe/d. Prairie Provident’s full-year 2018 capital budget remains consistent with the
original guidance of $26 million. After bringing the Princess-5 well (defined hereunder) on-stream, the Company has approximately
17% of its 2018 capital budget available for further development at its Evi core area, where it intends to drill three new
exploratory wells beginning in November 2018.
Princess Area Update
Prairie Provident’s latest exploratory Lithic Glauconite well, targeting a new Glauc channel (100% WI) and
drilled in a southern block of prospective lands at 103/14-12-019-11W4 (“Princess-5”), commenced production on September 4, 2018
and averaged 550 boe/d (60% liquids) over its first 3 producing days. The early success of Princess-5 further improves PPR’s
internal type curve expectations for the area, and based on the results to date management anticipates improved reserves and
economics in the Princess area.
As previously announced, during May and July 2018 Prairie Provident brought the
102/13-24-020-11W4*well (“Princess-1”) (100% WI) and the 102/13-26-020-11W4 well (“Princess-4”) (100% WI) on production.
During August, both wells continued to perform favourably, with Princess-1 currently producing at a rate of approximately 750 boe/d
(65% liquids) and Princess-4 currently producing at a rate of approximately 650 boe/d (87% liquids), in each case based on field
estimates.
Prairie Provident’s 2018 Princess capital program has demonstrated the Company’s ability to target higher-value
oil and liquids-weighted drilling locations, supported by its sizeable asset base. PPR currently has 33,000 acres of undeveloped
lands in the Princess area and plans to resume drilling operations there in 2019.
The Company cautions that the short-term production rates disclosed in this news release are preliminary
in nature and may not be indicative of stabilized on-stream production rates or of future ratios between product types. Initial
results are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery.
ABOUT PRAIRIE PROVIDENT
Prairie Provident is a Calgary-based company engaged in the exploration and development of oil and natural gas
properties in Alberta. The Company’s strategy is to grow organically in combination with accretive acquisitions of conventional oil
prospects, which can be efficiently developed. Prairie Provident’s operations are primarily focused at Wheatland and Princess in
Southern Alberta targeting the Ellerslie and the Lithic Glauconite formations, along with an early stage waterflood project at Evi
in the Peace River Arch. Prairie Provident protects its balance sheet through an active hedging program and manages risk by
allocating capital to opportunities offering maximum shareholder returns.
For further information, please contact:
Prairie Provident Resources Inc.
Tim Granger
President and Chief Executive Officer
Tel: (403) 292-8110
Email: tgranger@ppr.ca
website: www.ppr.ca
FORWARD-LOOKING STATEMENTS
This news release contains certain statements ("forward-looking statements") that constitute forward-looking
information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future performance,
events or circumstances, and are based upon internal assumptions, plans, intentions, expectations and beliefs. All statements other
than statements of current or historical fact constitute forward-looking statements. Forward-looking statements are typically, but
not always, identified by words such as "anticipate", "believe", "expect", "intend", "plan", "budget", "forecast", "target",
"estimate", "propose", "potential", "project", "continue", "may", "will", "should" or similar words suggesting future outcomes or
events or statements regarding an outlook.
Without limiting the foregoing, this news release contains forward-looking statements pertaining to:
anticipated full-year production for 2018; budgeted capital expenditures for 2018; intended drilling plans at Evi and timing
thereof; future development plans generally; and anticipated reserves and economics improvements in the Princess area.
The forward-looking statements contained in this news release reflect material factors and expectations and
assumptions of Prairie Provident including, without limitation: commodity prices and foreign exchange rates for 2018 and beyond;
the timing and success of future drilling, development and completion activities (and the extent to which the results thereof meet
Management's expectations); the continued availability of financing (including borrowings under the Company's credit facility) and
cash flow to fund current and future expenditures, with external financing on acceptable terms; future capital expenditure
requirements and the sufficiency thereof to achieve the Company's objectives; the performance of both new and existing wells; the
successful application of drilling, completion and seismic technology; the Company's ability to economically produce oil and gas
from its properties and the timing and cost to do so; the predictability of future results based on past and current experience;
prevailing weather conditions; prevailing legislation and regulatory requirements affecting the oil and gas industry (including
royalty regimes); the timely receipt of required regulatory approvals; the availability of capital, labour and services on timely
and cost-effective basis; and the general economic, regulatory and political environment in which the Company operates. Prairie
Provident believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable
but no assurance can be given that these factors, expectations and assumptions will prove to be correct.
Although Prairie Provident believes that the expectations and assumptions upon which the forward-looking
statements in this news release is based are reasonable based on currently available information, undue reliance should not be
placed on such information, which is inherently uncertain, relies on assumptions and expectations, and is subject to known and
unknown risks, uncertainties and other factors, both general and specific, many of which are beyond the Company's control, that may
cause actual results or events to differ materially from those indicated or suggested in the forward-looking statements. Prairie
Provident can give no assurance that the forward-looking statements contained herein will prove to be correct or that the
expectations and assumptions upon which they are based will occur or be realized. These include, but are not limited to: risks
inherent to oil and gas exploration, development, exploitation and production operations and the oil and gas industry in general,;
adverse changes in commodity prices, foreign exchange rates or interest rates; the ability to access capital when required and on
acceptable terms; the ability to secure required services on a timely basis and on acceptable terms; increases in operating costs;
environmental risks; changes in laws and governmental regulation (including with respect to royalties, taxes and environmental
matters); adverse weather or break-up conditions; competition for labour, services, equipment and materials necessary to further
the Company's oil and gas activities; and changes in plans with respect to exploration or development projects or capital
expenditures in respect thereof. These and other risks are discussed in more detail in the Company's current annual
information form and other documents filed by it from time to time with securities regulatory authorities in Canada, copies of
which are available electronically under Prairie Provident's issuer profile on the SEDAR website at www.sedar.com and on the Company's website at
www.ppr.ca. This list is not exhaustive.
The forward-looking statements contained in this news release speak only as of the date of this news
release, and Prairie Provident assumes no obligation to publicly update or revise them to reflect new events or circumstances, or
otherwise, except as may be required pursuant to applicable laws. All forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
OTHER ADVISORIES
The oil and gas industry commonly expresses production volumes and reserves on a “barrel of oil equivalent”
basis (“boe”) whereby natural gas volumes are converted at the ratio of six thousand cubic feet to one barrel of oil. The intention
is to sum oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry
participants. A boe conversion ratio of six thousand cubic feet to one barrel of oil is based on an energy equivalency conversion
method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead nor at the plant gate,
which is where Prairie Provident sells its production volumes. Boes may therefore be a misleading measure, particularly if used in
isolation. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different
from the energy equivalency ratio of 6:1, utilizing a 6:1 conversion ratio may be misleading as an indication of value.
* The 102/13-24-020-11W4 (Princess-1) well was previously disclosed as 102/1-26-020-11W4 in the
Company's news release dated May 9, 2018 entitled “ Prairie Provident Announces First Quarter 2018 Financial and Operating
Results”.
