An anonymous director reports

PRAIRIE PROVIDENT RESOURCES ANNOUNCES THIRD QUARTER 2023 FINANCIAL AND OPERATING RESULTS AND MANAGEMENT CHANGES

Prairie Provident Resources Inc. has released operating and financial results for the quarter ended Sept. 30, 2023. Prairie's interim financial statements and related management's discussion and analysis (MD&A) are available on its website and filed on SEDAR+.

Third quarter 2023 financial and operational highlights:

• The company entered into agreements to sell its Evi cash-generating unit in Northern Alberta for a base purchase price of $27-million (before effective date adjustments), and certain non-core assets in the Provost area for a base purchase price of $1.8-million (before effective date adjustments) plus potential future payments of up to an additional $720,000 based on the price of oil and production from the Provost assets during the 24-month period following closing.
• Production averaged 3,523 barrels of oil equivalent/day (64 per cent liquids) for the third quarter of 2023, slightly down from the second quarter average of 2023 (3,641 boe/d), with no development capital spent.
• Third quarter 2023 operating netback before the impact of derivatives was $9.4-million ($29.15/boe), and $9.1-million ($28.16/boe) after realized losses on derivatives, a $1.8-million and $1.2-million increase from the second quarter of 2023, respectively.
• Operating expenses for the third quarter of 2023 decreased by $2.97 per boe of production from the second quarter of 2023, principally due to continued attention to cost control and production optimization efforts. This focus on reducing operating expenses is expected to continue improving operating netbacks during the balance of 2023.
• The company spent $4.5-million on abandonment and reclamation activities in the third quarter.

Management changes

The company is pleased to announce the appointment of Ryan Rawlyk as president and chief executive officer, effective Jan. 1, 2024. Mr. Rawlyk currently serves as chief operating officer and has been with the company since September, 2021. Mr. Rawlyk will succeed Patrick McDonald, who has served as interim chief executive officer since December, 2022, and will continue to serve as chairman of the board of directors. The company extends a sincere thank you to Mr. McDonald for his accomplishments while interim chief executive officer.

The company also announces the appointment of David Stobbe as chief financial officer, effective immediately. Mr. Stobbe continues to serve as controller of the company, a position he has held since June, and prior to joining Prairie Provident was vice-president, accounting, at Velvet Energy Ltd.

The board of directors has formed a committee consisting of directors Dale Miller (Chair), Mr. McDonald and Glenn Hamilton. The significant industry experience within the executive committee is intended to provide operational, financial and transactional direction as the company continues to refocus after the recapitalization completed earlier this year.

The company also announces the resignation of Ajay Sabherwal as a director of the company. The company sincerely thanks Mr. Sabherwal for his many years of dedicated service and contributions as a director and chair of the audit committee of the company.

About Prairie Provident Resources Inc.

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 optimize cash flows from its existing assets, providing low-risk development and stable low-decline cash flow.

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