Prairie Provident Resources, Inc. · TSX:PPR
Prairie Provident Resources — Investor Presentation (April 2023)
32 slides from Prairie Provident Resources's investor presentation, Apr 11, 2023
Slide 1: Re-Positioning to Unlock Significant Value for Shareholders
Re-Positioning to Unlock Significant Value for Shareholders TSX: PPR Corporate Update April 2023
Slide 2: Corporate Overview
Corporate Overview CORPORATE SUMMARY Low Decline Asset Base Production (2022) (boe/d) 4,072 with long reserve life & significant upside Evi Production mix 65% Liquids potential through Reserves (2P)(1) 31.9MMboe waterflooding Prairie Provident Resources | March 2023 Reserve Life Index (2P)(1) 20.1 y
Slide 3: Recapitalization Announcement
Recapitalization Announcement • PPR is in the process of executing a transformative recapitalization that will significantly improve its balance sheet • Summary: Prairie Provident Resources | March 2023 • Unsecured notes converted to equity (common shares are escrowed with a tiered release schedule
Slide 4: Summary Term Sheet of Equity Financing
Summary Term Sheet of Equity Financing Issuer: Prairie Provident Resources Inc. (the “Company”). Offering: Best efforts, private placement offering (the “Offering”) of units of the Company (the “Units”). Each Unit shall be comprised of one common share of the Company (a “Common Share”) and one Commo
Slide 5: Pro Forma Recapitalization Overview
Pro Forma Recapitalization Overview Significantly improves balance sheet health Net Debt ($MM) PPR Transaction PPR Current Adjustments(1) Pro Forma $200 Share Price $0.09 $0.09 $145 $150 (2) Basic Shares Outstanding 130.1 587.7 717.8 (3) $100 $69 Existing Warrants 34.3 (34.3) - Prairie Provident Res
Slide 6: Free Cash Flow and Debt Reduction
Free Cash Flow and Debt Reduction The Recapitalization’s significant debt reduction allows PPR to invest in sustainably growing its business and continuing to reduce its leverage Prairie Provident Resources | March 2023 Updated Guidance $150 2023 2024 $125 Recapitalization reduces debt by ~$68 milli
Slide 7: Pro Forma Investment Highlights
Pro Forma Investment Highlights ✓ Attractive pro forma value of ~$0.398(1) and $0.676(1) NAV per share based on 1P and 2P reserves, respectively ✓ Significantly reducing debt/leverage to enhance shareholder value with Prudential becoming a major shareholder in support of our strategy Prairie Provide
Slide 8: 2022 Reserves Highlights
2022 Reserves Highlights Underpinned by low decline oil assets with long RLI & Strong Netbacks YEAR END 2022 RESERVES SUMMARY (1) (3) EV/1PNPV10 = 36% Proved Total proved Prairie Provident Resources | March 2023 developed plus probable producing (PDP) Total proved (1P) (2P) (3) EV/2PNPV10 = 23% Ligh
Slide 9: 2022 Reserves Benchmarking
2022 Reserves Benchmarking PPR trades at a substantial discount on a reserve basis relative to peers EV / 1P NPV10(1) 1.6x 1.4x 1.2x 1.0x 0.8x Prairie Provident Resources | March 2023 0.6x 0.4x 0.2x 0.0x YGR BNE BIR PPR AAV IPO PEY OBE KEL VET MEG PRQ TOU NVA JOY WCP ATH ERF ROK SGY CPG ARX POU CJ B
Slide 10: Tax Pool Summary
Tax Pool Summary Tax Pool Composition(1) ($ Millions) • ~$861 million of tax pools provides meaningful upside to investors $560 immediately $72 tax deductible • ~$560 million immediately deductible $109 $352 Prairie Provident Resources | March 2023 Illustrative Tax Pool Valuation(2) $121 ($ Millions
Slide 11: PPR Investment Proposition
PPR Investment Proposition Unlock value through multi-step process Maximize Shareholder Exploit Returns Large Prairie Provident Resources | March 2023 Drilling Unlock Inventory Near-Term Value Create long-term value for Restructure shareholders including possible exit or returning cash Debt 14.2 yea
Slide 12: 2023 Outlook
2023 Outlook 12 TSX: PPR
Slide 13: 2023 Outlook
2023 Outlook Minimal Capital Program Keeps Production Flat 2023 Outlook Optimize Core Assets: Portfolio Management: Maximize cash flow through opex Streamline portfolio by divesting of and production improvements, high ARO properties and continued Total capex of $14-16MM reactivations of suspended a
Slide 14: Optimization Program Economics by Area
Optimization Program Economics by Area Capital NPV10 Payout F&D Res. Add Net Values $M $MM yrs $/boe Mboe Michichi 382 4.4 0.8 1.02 372 Princess 840 0.8 0.6 2.91 288 Evi Provost 917 4.1 1.0 4.20 218 Prairie Provident Resources | March 2023 Wheatland 30 0.1 0.3 1.49 20 Evi 1,575 17.2 0.8 3.03 520 Oth
Slide 15: Growth Opportunities
Growth Opportunities 15 TSX: PPR
Slide 16: Deep Inventory of Growth Opportunities
Deep Inventory of Growth Opportunities PROVOST • Multi-leg horizontal drilling in the Sparky formation at Sounding Lake WHEATLAND • Low-risk, high NPV follow-up drill locations Prairie Provident Resources | March 2023 PRINCESS • Detrital – Unbooked, multi-well, open hole, low-cost drilling with long
Slide 17: Economic drilling opportunities across all assets
Economic drilling opportunities across all assets PPR has a large inventory of high-quality drill opportunities available • Near term opportunities will focus on Princess and Provost drilling opportunities with low initial investment, high ROR, and quick payouts • Michichi Banff and Evi Slave Point
Slide 18: Princess Ellerslie Development
Princess Ellerslie Development Multi-leg horizontal drilling with long-life oil Princess Ellerslie Production Forecast reserves and waterflood potential 180 160 Open-Hole, Multi-Leg HZ (Analog, 10% RF) • 3 multi-lateral Ellerslie wells can be drilled within existing pool. 140 Sproule Type - Frac Sti
Slide 19: Princess Heritage Detrital Development
Princess Heritage Detrital Development Multi-well, low-cost drilling Pekisko Seismic Structure • 1 potential near-term location to prove up Detrital play on Heritage lands • Structural seismic play requiring four-way closure • Can be gas, oil, or water or a combination • 100% PPR, freehold land with
Slide 20: Princess Crown Detrital Development
Princess Crown Detrital Development Multi-well, low-cost drilling Princess Base Map • Both locations target the Detrital from an existing tied in pad site within an existing pool • 15-08-020-10W4 is planned within the highest part of the structure with the brightest amplitude • Detrital amplitude is
Slide 21: Princess Glauconite Development
Princess Glauconite Development Glauc Channel Trends High-rate quick payout high GOR oil wells • 2 locations kicked off for potential 2023 development • 100/01-10-020-11W4 • 103/03-16-018-11W4 • 100% PPR, freehold land with Heritage royalties 18.5% oil/ 12.5% NG • Seismically defined channel 200m -
Slide 22: Sparky Channel Development
Sparky Channel Development Multi-leg horizontal drilling in the Mannville at Sounding Lake Base Maps Sounding Lake, Provost Full development targets 7% RF • 2-well program kept on crown mineral land, existing surface lease for quick execution • Sounding Lake is an active hub in Provost, with LACT co
Slide 23: Wheatland Ellerslie Horizontal Drilling
Wheatland Ellerslie Horizontal Drilling Two low-risk, high NPV follow-up locations Ellerslie Phi.H • Offsetting successful 2015-16 drills • Wells modelled after original drills and risked by 20% to account for 102/2-10 depletion risk • In consideration of material balance, typical well spacing was i
Slide 24: Michichi Banff Development
Michichi Banff Development Infill drilling in active field Craigmyle Base Map One drill location proposed: 100/13-10-032-17W4 • 2 Additional locations offsetting 13-10 will be ready to license by year end 2022 04-09 Oil • Crown, acquired ready for licensing Battery • Target zone is the Banff Porosit
Slide 25: Management Team & Board of Directors
Management Team & Board of Directors Management Board of Directors Patrick R. McDonald Patrick R. McDonald Interim CEO Chairman Prairie Provident Resources | March 2023 Allison Massey Bettina Pierre-Gilles Vice President Land & Commercial Director Ryan Rawlyk Ajay Sabherwal Vice President Production
Slide 26: Corporate Information
Corporate Information Head Office Prairie Provident Resources Canada Ltd. 1100, 640 – 5th Avenue SW Calgary, Alberta, Canada T2P 3G4 Auditors Legal Counsel EY LLP MLT Aikins Bennett Jones Reserve Engineers Sproule Associates Limited Analyst Coverage Research Capital PPR
Slide 27: Reader Advisories: Forward-Looking Information
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 28: 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 29: Non-GAAP Financial Measures and Oil and Gas Metrics (Continued)
Reader Advisories Non-GAAP Financial Measures and Oil and Gas Metrics (Continued) The relative liquids weighting for the average type wells referred to on Slide 14 of this presentation is as follows: (i) for Princess Glauconite wells, 58.2% light and medium crude oil, 0% heavy crude oil, and 0.4% na
Slide 30: 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, 2022 based on an evaluation by Sproule Associates Lim
Slide 31: Appendix
APPENDIX 31 TSX: PPR
Slide 32: ESG Commitment
ESG Commitment PPR’s strategy incorporates specific targets related to environmental, social, governance and financial sustainability E • Emission reduction summary intends to meet reduction targets • Methane emission reduction program Prairie Provident Resources | March 2023 • Fresh water policy ai
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