Prairie Provident Resources Announces Closing of Asset Sales

CALGARY, Alberta, March 05, 2024 (GLOBE NEWSWIRE) -- Prairie Provident Resources Inc. ("Prairie Provident" or the "Company") is pleased to announce that it has closed the previously announced sales of its Evi assets in Northern Alberta for net proceeds of $22.5 million after adjustments, based on an effective date of August 1, 2023, and certain non-core assets located in the Provost area of Central Alberta for net proceeds of $1.7 million after adjustments, based on an effective date of July 1, 2023. The purchasers have assumed all future abandonment and reclamation obligations (ARO) pertaining to the sold assets, which carry total AER deemed liabilities of approximately $51.0 million gross ($46.4 million net).¹

Of the net proceeds of approximately $24.2 million, $20 million has been used to reduce indebtedness under the Company's senior secured credit facility, with the remainder to increase its working capital position.

Going forward, the Company intends to focus on its inventory of attractive optimization and development opportunities in Central and Southern Alberta and continue with non-core property dispositions to enhance its financial flexibility.

ABOUT PRAIRIE PROVIDENT:

Prairie Provident is a Calgary-based company engaged in the exploration and development of oil and natural gas properties in Alberta.

For further information, please contact:

Ryan Rawlyk, President and CEO
Phone: (403) 292-8180 or Email: [email protected]

¹ Deemed liability figures are as provided through the OneStop platform of the Alberta Energy Regulator (AER), based on the manner in which the AER currently estimates decommissioning and reclamation liabilities associated with oil and gas wells and facilities.