Prairie Working Co. mentioned it has closed its $602.75 million acquisition of sure Denver-Julesburg Basin (DJ Basin) belongings from Bayswater Exploration and Manufacturing and its affiliated entities, which strengthens its place “as a number one operator” within the basin.
The acquisition boosts Prairie’s manufacturing by roughly 25,700 internet barrels of oil equal per day (boepd), consisting of 69 p.c liquids, the corporate mentioned in a information launch. It additionally provides 24,000 internet acres to the corporate’s roughly 600 extremely financial drilling areas and roughly 10 years of drilling stock.
The belongings contribute 77.9 million barrels of oil equal (MMboe) in proved reserves with an estimated PV-10 worth of $1.1 billion, Prairie mentioned.
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With the enlargement, Prairie mentioned it anticipates a considerable uplift in its 2025 manufacturing, income, and adjusted EBITDA.
Prairie mentioned the transaction was funded by way of a mixture of proceeds from a brand new issuance of collection F convertible most well-liked inventory to a single institutional investor, a typical inventory public providing, a draw on the corporate’s newly expanded $1 billion credit score facility, and a direct issuance of frequent inventory to Bayswater. Following the closing, Prairie has roughly 35.4 million shares of frequent inventory excellent.
“This acquisition is a pivotal second for Prairie, considerably increasing our operational footprint within the DJ Basin,” Prairie Chairman and CEO Edward Kovalik mentioned. “By integrating these high-quality belongings, we’re materially enhancing our manufacturing profile, strengthening our monetary place, and creating significant worth for our shareholders. Prairie stays singularly targeted on executing our strategic imaginative and prescient to change into a premier high-growth, low-cost oil producer”.
Prairie President Gary Hanna mentioned, “The addition of the Bayswater Belongings additional establishes Prairie as a number one operator within the DJ Basin. These belongings are a powerful complement to our present portfolio, and we stay targeted on maximizing operational efficiencies, optimizing manufacturing, and delivering sustainable progress for shareholders”.
New CFO Named
Earlier within the month, the corporate appointed Gregory Patton as CFO, beginning April 1.
Patton succeeds Craig Owen, who’s retiring on the identical date after greater than 30 years within the power business.
Patton, who joined Prairie final yr as government vp of economic improvement, brings over 15 years of business expertise with a powerful background in company finance, accounting, and capital markets, the corporate mentioned in an earlier information launch.
Previous to becoming a member of the corporate, Patton served as Senior Vice President of Company Improvement and Finance at Nice Western Petroleum and as CFO at Set off Vitality.
“Craig has been an impressive CFO, and we wish to sincerely thank him for his management and contributions in positioning Prairie for long-term success,” Kovalik mentioned. “He has had an amazing profession, and we’re grateful for the impression he has made in serving to us construct a powerful monetary platform. Craig has graciously agreed to help in a easy transition, and we want him all one of the best in his well-earned retirement”.
Kovalik continued, “Over the previous yr Greg has performed a crucial position in strengthening Prairie’s monetary operations and aligning our capital technique with long-term progress goals. His demonstrated experience makes him the perfect individual to step into the CFO position and he has earned the total confidence and help of our Board of Administrators”.
Houston-based Prairie describes itself as a publicly traded impartial power firm engaged within the improvement and acquisition of oil and pure fuel assets within the USA. The Firm’s belongings and operations are concentrated within the oil and liquids-rich areas of the Denver-Julesburg (DJ) Basin, with a major give attention to the Niobrara and Codell formations.
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