Prairie Provident Resources, Inc. · TSX:PPR
Prairie Provident Resources — Investor Presentation (September 2024)
25 slides from Prairie Provident Resources's investor presentation, September 2024
Slide 1: Corporate Update
TSX: PPR Corporate Update September 2024
Slide 2: PPR Has a Clear Path to Unlocking Existing Asset Value Driving Returns
PPR Has a Clear Path to Unlocking Existing Asset Value Driving Returns PPR Investment Opportunity Alignment with • Long-standing support from Prudential and its affiliates including up to $11.6 million participation in 1 Principal Holder recently launched ~$13.238 million Rights Offering • Two Michi
Slide 3: Rights Offering & Debt Amendment Announcement
Announcement Rights Offering & Debt Amendment Announcement • PPR is in the process of executing a rights offering for up to ~$13.238 Million of equity (the “Rights Offering”) at a price of C$0.025 per share to be used to accelerate development and repay a portion of second lien notes (the “2L Notes"
Slide 4: Summary of Growth Opportunities
Deep Inventory of Low-Risk, High Return Locations Summary of Growth Opportunities Provost Michichi Sounding Lake • Stacked drilling locations in ~1,050 boe/d ~150 boe/d • 9 Sparky, multi-leg economic the Banff and Ellerslie/BQ locations identified • 50+ economic locations • Infrastructure in place •
Slide 5: Uplift From Near-Term Michichi Development
Near-Term Development Uplift From Near-Term Michichi Development Illustrative Production Impact Illustrative Cash flow Impact Added production based on Michichi BQ average type curve (1) Based on 2 x Michichi Basal Quartz wells (1) Planned: Two Michichi BQ Illustrative: Two Michichi BQ 12-Month B.T.
Slide 6: Low Risk, High Return Drilling Opportunities Available
Deep Inventory of Low-Risk, High Return Locations Low Risk, High Return Drilling Opportunities Available Single Well Economics (1)(2) $75/bbl USD, $3.00/Mcf AECO CAD flat Resilient Returns & Significant Upside (6) Capital F&D IRR NPV10 Payout EUR Type Well Economics 400% $MM $/boe % $MM Yrs Mboe 350
Slide 7: Michichi Basal Quartz
Michichi Basal Quartz 7 TSX: PPR
Slide 8: Basal Quartz – Ranks With the Best Plays in WCSB
Basal Quartz – Ranks With the Best Plays in WCSB (Western Canadian Sedimentary Basin) Play Comparison – Payout Ranking (1) Type Curve IP90 CAPEX EUR NGL Liq. Pct IRR Payout NPV10 P/I Area boe/d C$M Mboe Mbbl % % Years C$M Ratio Charlie Lake - Lower 450 3,000 375 20 63% >500% 0.3 7,179 2.4 Clearwater
Slide 9: Basal Quartz – Reliable Cash-Flow Generator for PPR
Basal Quartz – Reliable Cash-Flow Generator for PPR PPR’s Michichi Basal Quartz Overview Key Highlights Type Curve & Single Well Economics (1)(2)(3) • Two wells planned for Q4 2024 1500 Basal Quartz Average Type Curve • B.T. NPV10 breakeven of less than US$40 WTI (4) 1250 Peak Rate ~540 boe/d IP12mo
Slide 10: Basal Quartz – Regional Overview & Activity
Basal Quartz – Regional Overview & Activity Michichi Basal Quartz Potential • Historical horizontal activity has focused on the thicker sands to the southwest • Recent activity is pushing the play into thinner sands deposited against the Paleozoic Highlands • PPR acreage is well situated within the
Slide 11: Basal Quartz – PPR Acreage De-risked and Analogous to Offsetting Pools
Basal Quartz – PPR Acreage De-risked and Analogous to Highly Productive Offsetting Pools Michichi Basal Quartz Comparison to Offsets Q4 2024 Planned Drilling Locations Competitor Q5Q Pool Competitor 01-12 Offset PPR 18-030-18W4 PPR 32-029-18W4 Ellerslie Ellerslie Ellerslie Ellerslie Net Pay 13 m Net
Slide 12: Additional Growth Opportunities
Additional Growth Opportunities 12 TSX: PPR
Slide 13: Potential for Significant Growth in Michichi Field
Potential for Significant Growth in Michichi Field Michichi Banff Sand • Banff Sand Play has superior porosity and permeability allowing higher Legend: 13-28 Sales production rates than the limestone facies traditionally targeted Banff Sand Fairway • Banff sand will be PPR’s focus over the historica
Slide 14: Quick, Repeatable, Active Play in the Provost Area
Quick, Repeatable, Active Play in the Provost Area Provost Multi-Lateral Sparky • High degree of certainty Legend: PPR Sparky Planned Multi-lats • Oil presence proven with vertical recompletion at 13-26 Industry Sparky HZ • Several analog, offsetting, producing reservoirs utilizing multi-lateral PPR
Slide 15: High Value Locations in the Successful Princess Field
High Value Locations in the Successful Princess Field Princess Multi-Lateral Ellerslie • Multi-leg horizontal wells in the Ellerslie formation which demonstrate robust Legend: economics Industry Ellerslie HZ • Offset successful horizontal Ellerslie wells from 2021 PPR Ellerslie Rights • Wells modell
Slide 16: Low Risk, Active Play in Wheatland
Low Risk, Active Play in Wheatland Wheatland Infill Ellerslie • Follow-up to 2 successful PPR drills with 2 additional low risk, Ellerslie hztl wells 9-9 LACT Connected Battery • Existing surface leases & facilities for quick execution • Gas conservation in place • Year-round lease access • Horizont
Slide 17: Corporate Overview and Rights Offering Information
Corporate Overview and Rights Offering Information 17 TSX: PPR
Slide 18: Experienced Management and Board
Corporate Overview Experienced Management and Board Director Position Current / Prior Experience Patrick R. McDonald Chairman Current CEO – Carbon Energy Corp. Ryan Rawlyk, P. Eng President, Chief Executive Officer Current President and CEO – Prairie Provident Resources and Director Inc. Matthew Shy
Slide 19: PPR Fact Sheet
Corporate Overview PPR Fact Sheet CORPORATE SUMMARY MARKET SUMMARY Auditors Production (Q2 2024) (boe/d) 2,045 Shares outstanding (4) 716.1 MM EY LLP Production mix (Q2 2024) 52% Liquids Market capitalization (4,5) $25.1 MM Reserves (2P) (1,2) 21.6 MMboe Net Debt (1) $67.4 MM Reserve Engineers Reser
Slide 20: PPR trades at a substantial discount on a reserve basis relative to peers
PPR trades at a substantial discount on a reserve basis relative to peers 2023 Reserves Benchmarking Peer Benchmarking (EV to 1P/2P NPV10) (1,2) Net Asset Value per Share (2,3) (C$/sh.) Current Share Price 1P 2P 2.00x $0.50 1.75x $0.45 $0.40 $0.43 1.50x $0.35 1.25x $0.30 $0.32 1.00x $0.25 $0.23 0.75
Slide 21: Significant Unrealized Value in Tax Pools
Tax Pools Significant Unrealized Value in Tax Pools Illustrative Tax Pool Valuation (2) Tax Pool Composition (1) ($ Millions) ($ Millions, unless otherwise stated) ~$390 million ~$70 immediately tax Annual Taxable deductible Income NPV 10% NPV 10% / Share ~$30 $25 ~$50 ~$0.07 $50 ~$75 ~$0.10 ~$100 $
Slide 22: Reader Advisories
Reader Advisories Forward-Looking Information Certain information included in this presentation constitutes forward-looking information within the meaning of applicable Canadian securities laws. Statements that constitute forward-looking information relate to future performance, events or circumstan
Slide 23: Reader Advisories – Non-GAAP Financial Measures and Oil and Gas Metrics
Reader Advisories Non-GAAP Financial Measures and Oil and Gas Metrics This presentation discloses certain financial measures, as described below, that are 'non-GAAP financial measures' within the meaning of applicable Canadian securities laws. Such measures do not have a standardized or prescribed m
Slide 24: Reader Advisories – Non-GAAP Financial Measures (Continued)
Reader Advisories Non-GAAP Financial Measures and Oil and Gas Metrics (Continued) Estimated Ultimate Recovery (EUR). The type well information provided in this presentation includes estimated ultimate recovery (EUR), which is a measure commonly used in the oil and gas industry but is not a resource
Slide 25: Reader Advisories – Reserves Data Disclosure
Reader Advisories Reserves Data Disclosure Figures provided in this presentation as to proved reserves and probable reserves volumes, and net present value of related future net revenue, are estimates of such volumes and values as at December 31, 2023 based on an evaluation by Sproule Associates Lim
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