Prairie Working Co. has reported a attainable reserves foundation of roughly 285.3 million barrels of oil equal (MMboe) at its non-producing place in Weld County, Colorado, citing an unbiased third-party analysis.
“The reserve report displays the standard and scale of the corporate’s 37,000 gross acre place”, Prairie mentioned in a information launch Monday. The report established a attainable reserves foundation with a PV10 worth of roughly $2.4 billion, the corporate mentioned.
Prairie mentioned the reserves are supported by 412 certified places throughout each the Niobrara and Codell formations which can be a part of the corporate’s future improvement plan. Additional, the corporate mentioned it has “lots of of further places past this preliminary 5-year improvement program that aren’t at present included within the report”.
Because the acreage place is additional delineated by inside improvement and offset drilling exercise, Prairie expects materials will increase to its confirmed oil and gasoline reserves and PV10 valuation, in response to the discharge.
“This unbiased third-party reserve report firmly validates the power and scalability of our asset base”, Prairie Chairman and CEO Ed Kovalik mentioned. “We’re assured our intensive drilling stock will likely be a driving consider creating constant, long-term worth for our shareholders. The staff appears to be like ahead to submitting permits and starting our improvement program, as we’ve got positioned the Firm for vital progress.”
Earlier within the month, Prairie executed its possibility to amass the remaining Exok Inc. belongings positioned in Weld County, Colorado. In conjunction, the corporate closed a $20 million Personal Funding in Public Fairness (PIPE) providing, in response to a separate information launch.
To fund the train of the Exok possibility, Prairie mentioned it raised $20 million by the PIPE of its Collection E most well-liked inventory, frequent inventory, and warrants to buy the corporate’s inventory with an present investor.
The Exok asset is offset by industry-leading operators and positioned inside the core of the premier Denver-Julesburg Basin, Prairie mentioned. After closing, the corporate will management a complete of roughly 37,189 acres in Weld County, Colorado.
“I’m happy to share that the Firm has totally exercised the choice to amass the remaining Exok belongings, a transfer that not solely accelerates our progress but additionally strengthens our total place inside a top-tier U.S. Shale Basin”, Kovalik mentioned. “This acquisition, coupled with the profitable closing of a $20 million PIPE providing, highlights investor confidence within the Firm’s imaginative and prescient to develop into a world-class developer of high-quality belongings.”
“We look ahead to submitting our allow purposes for acreage improvement and making ready each Niobrara and Codell improvement packages,” Prairie President Gary Hanna mentioned.
In the meantime, Prairie shaped a strategic partnership with Excessive West Vitality, in a transfer aimed toward supplying electrical energy to all its area operations. This collaboration marks a major step ahead within the electrification of the vast majority of Prairie’s rural DJ Basin acreage place in northern Weld County, in response to an earlier information launch.
Prairie highlighted its complete electrification technique, which encompasses key areas inside its operations, together with the electrification of drilling rigs, the implementation of electric-driven compression at amenities, and the utilization of air-driven pneumatic gadgets. By transitioning away from diesel and area gas-powered operations, Prairie anticipates substantial reductions in greenhouse gasoline depth and nitrogen oxide emissions, the corporate mentioned.
“This strategic partnership highlights our unwavering dedication to looking for sustainable enterprise alternatives that generate aggressive long-term monetary returns whereas prioritizing secure and environmentally accountable execution. The corporate’s dedication to ESG ideas stays a driving drive behind our inside execution and funding determination technique”, Kovalik mentioned.
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