Mr. Dale Miller reports

PRAIRIE PROVIDENT RESOURCES ANNOUNCES OPERATIONS UPDATE

Prairie Provident Resources Inc. has provided an operational update on its drilling program in its Princess and Michichi areas.

The company drilled and completed one Ellerslie multileg open-hole horizontal well 102/03-24-018-11W4M in its Princess core area. The well's initial production results are summarized in the following table.

Production continues to increase as the well cleans up. Latest daily production was approximately 290 barrels of oil equivalent per day (185 barrels per day of heavy oil) based on field estimates at the wellhead. To date, initial production from 102/03-24-018-11W4M has been constrained due to limitations on the natural gas take-away volumes. The company expects the flush natural gas production to decline in the near term, and, as such, natural gas take-away will not be an issue in the future.

At Princess, the company installed and commissioned a water disposal facility at 10-23-018-11W4M. Included in this project was the tie-in of the 102/10-23-018-11W4M Pekisko water disposal well. The company expects annual area operating cost savings of approximately $600,000 from this project, by eliminating produced water trucking and third party water disposal charges.

At Michichi, two one-mile Basal Quartz horizontal wells were drilled off the 4-31-30-18W4M surface pad site at 03-30-30-18W4M and 02-30-30-18W4M. Both wells encountered high-quality Basal Quartz reservoir as evidenced by the geological strip logs. However, production casing failures occurred during the primary cementing operations at both wells. Downhole camera visualizations show casing shearing/deformation at similar depths on a casing collar. The company is still investigating, but believes these are separate events that may have been caused by an oblique slip in a system of critically stressed subseismic faults triggered by geomechanical factors.

In the Michichi/Drumheller area, Prairie Provident has adhered to the standard offset well drilling design for single-leg cased-hole Basal Quartz horizontal wells. The company believes the 03-30-30-18W4M and 02-30-30-18W4M wells are unlikely to be salvageable in their current configuration. The company is currently assessing the impact of these geomechanical events on its future drilling design in the Michichi area and will provide operational updates regarding future Basal Quartz development.

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.

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