Prairie Provident cuts debt and strengthens Basal Quartz assets

Prairie Provident Resources closed 2024 with a reorganisation of its assets and a strategic focus on the Basal Quartz formation, backed by capital raises and revised reserve estimates.

Share:

Prairie Provident Resources Inc., a Calgary-based company listed on the Toronto Stock Exchange, released its financial and operational results for the year ended 31 December 2024, along with an updated evaluation of its reserves. During the year, the company divested several non-core assets, reduced its debt load and accelerated development in the Basal Quartz formation, located in its core Michichi area in Alberta.

Debt reduction through divestments and capital raising

The sale of the Evi assets and certain non-core properties in the Provost area yielded net proceeds of approximately CAD$24.2mn, of which CAD$20.0mn was allocated to repaying indebtedness under the senior secured note facility. In October, the company completed a rights offering that raised CAD$12.0mn in gross proceeds, which were used to drill two horizontal wells in the Basal Quartz and further reduce debt.

Production decline offset by targeted gains

Annual average production reached 2,310 barrels of oil equivalent per day (boe/d), down from 3,558 boe/d in 2023, with liquids accounting for 56% of total output. The two newly drilled Basal Quartz wells delivered initial 60-day average production rates of 333 and 305 boe/d, respectively. Operating expenses averaged CAD$32.98 per boe, while the company posted an operating netback of CAD$9.8mn before the impact of derivatives.

Reserves revision and new drilling phase

According to the report from independent evaluator Trimble Engineering Associates Ltd., proved and probable reserves now total 24.4 million barrels of oil equivalent (MMboe), with a net present value before taxes estimated at CAD$337.2mn, discounted at 10%. The company recorded a reserves reduction due to divestments (-8.4 MMboe) and technical revisions, while adding 9.4 MMboe through new drillable locations in the Basal Quartz.

2025 Basal Quartz development underway

In the first quarter of 2025, three additional horizontal wells were drilled in the Basal Quartz following the late 2024 completions. Fracturing operations were finalised for two of the wells, with the third scheduled to begin in early April. All wells will be equipped with conventional artificial lift and are expected to come onstream by mid-April, with natural gas being captured locally.

  • Populaires ​
Glencore in talks with London over future of insolvent Lindsey oil refinery
US oil inventories unexpectedly rise by 3.8 million barrels
Global Oil Exploration Investments Decline, a First Since 2020
TotalEnergies sells 50% of its renewable assets in Portugal for €178.5mn
Madagascar signs with Global South Utilities to develop up to 250 MW solar
Turkey plans to start gas supplies to Syria soon, says energy minister
Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
China Reaches Record Energy Demand Without Boosting LNG Purchases
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production to hit historic high in 2025
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz Launches New Gas Well Despite Declining Production
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI Seal $1.35 Billion Contract in Algeria
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy launches strategic RFP for US gas project
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS secures USD 2 billion to finance its flagship Vaca Muerta project
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
Argentina forecasts 180 Mmcd to become regional supplier and major LNG exporter
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d’Ivoire and Eni strengthen their energy partnership with the Baleine project
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
Heatwave in China: Electricity Demand Surges, LNG Imports Slow
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON expands energy automation with a cogeneration plant in Neuss
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Argentina restricts industrial gas amid historic cold snap
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Strong Rise in Solar Power Reduces Summer Demand for Natural Gas
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Exxon and QatarEnergy ask US for permission to re-export LNG from October
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream secures strategic agreement with Siemens Energy and Samsung
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
DNO secures USD 500 million financing linked to Norwegian gas
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG raises $575mn through bond issuance and repurchases shares
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell ships first LNG cargo from its LNG Canada facility
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
Australia considers east coast gas reservation as market pressures intensify
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The drilling fluids industry will reach $10.7bn by 2032 driven by oil expansion and chemical innovations
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING