An anonymous director reports

PRAIRIE PROVIDENT RESOURCES ANNOUNCES FOURTH QUARTER AND YEAR-END 2023 FINANCIAL AND OPERATING RESULTS

Prairie Provident Resources Inc. has released its operating and financial results for the fourth quarter and year ended 2023. Prairie Provident's audited annual consolidated financial statements, and related management's discussion and analysis (MD&A) for the year ended Dec. 31, 2023, and annual information form dated April 2, 2024, for the same period, are available on the company's website and filed on SEDAR+.

Two thousand twenty-three annual financial and operational highlights:

• The company's financial flexibility was enhanced during the year with the completion of its recapitalization and debt-for-equity settlement, under which $53.4-million (U.S.) (approximately $72-million) of indebtedness under its previously outstanding subordinated notes was repaid through the issue of approximately 514.4 million common shares.
• In conjunction with the reorganization, the company completed the issue of $3.64-million (U.S.) (approximately $4.93-million) of second lien notes. Interest on these notes is paid in kind while the company's senior secured note facility is outstanding.
• The company also raised gross proceeds of $4-million through a private placement offering of 44.4 million common shares and warrants during the year to assist in the reduction of net debt.
• A significant decrease in the price of crude oil and natural gas, combined with a decrease in production, resulted in a 34-per-cent decrease in revenue to $79.8-million for 2023 from $120.6-million in 2022.
• For the year ended Dec. 31, 2023, production averaged 3,558 boe/d (barrels of oil equivalent per day) (64 per cent liquids), down 13 per cent from 4,072 boe/d average production for 2022.
• Operating netback for the year was $24.8-million ($19.07/boe) before the impact of derivatives in 2023, or $23.8-million ($18.35/boe) after realized losses on derivatives. This compares with an operating netback of $54.3-million ($36.54/boe) before the impact of derivatives, or $28.8-million ($19.38/boe) after realized losses on derivatives, for 2022.
• Operating expenses per boe rose by 8 per cent, increasing from $30.88 in 2022 to $33.25 in 2023. Despite facing higher fixed costs per boe due to decreased production, total operating expenses decreased by $2.7-million compared with the previous year.
• As at Dec. 31, 2023, net debt totalled $80.6-million, a $67.2-million decrease from Dec. 31, 2022, due to completion of the reorganization, composed of $66.2-million under its senior secured note facility, $6.4-million under its second lien notes (including deferred interest paid-in-kind) and an $8-million working capital deficit.
• In the first quarter of 2024, the company further reduced its indebtedness through the sale of its Evi assets in Northern Alberta and certain non-core assets located in the Provost area of central Alberta. Net proceeds of approximately $24.2-million were received from these dispositions, with $20-million used to further reduce indebtedness under the company's senior secured note facility.

Fourth quarter 2023 financial and operational highlights:

• Production averaged 3,413 boe/d (64 per cent liquids) for the fourth quarter of 2023, a 9-per-cent decrease from the same period in 2022.
• Fourth quarter 2023 operating netback before the impact of derivatives was $3.2-million ($10.03/boe) and $2.9-million ($9.07/boe) after realized losses on derivatives, a $3.4-million decrease and $600,000 increase, respectively, from the fourth quarter of 2022.
• Net capital expenditures for the fourth quarter of 2023 of $700,000 were primarily for the retention of mineral and surface leases.

About Prairie Provident Resources Inc.

Prairie Provident is a Calgary-based company engaged in the development of oil and natural gas properties in Alberta. The company's strategy is to optimize cash flow from its existing assets to finance low-risk development and maintain stable cash flow, while limiting its production decline.

We seek Safe Harbor.