Prairie Provident Resources, Inc. · TSX:PPR
Prairie Provident Resources — Shareholder Meeting (May 2024)
21 slides from Prairie Provident Resources's shareholder meeting presentation, May 24, 2024
Slide 1: Re-Positioning to Unlock Significant Value for Shareholders
Re-Positioning to Unlock Significant Value for Shareholders TSX: PPR Corporate Update May 2024
Slide 2: Prairie Provident Resources at a Glance
Corporate Overview Prairie Provident Resources at a Glance Alberta, Canada CORPORATE SUMMARY Low Decline Asset Base with Production (Q1 2024) (boe/d) 2,636 long reserve life & significant Production mix (Q1 2024) 59% Liquids upside potential through waterflooding Reserves (2P) (1,2) 21.6 MMboe Reser
Slide 3: 2023 Was a Transformational Year
Corporate Update 2023 Was a Transformational Year • PPR has successfully executed on its plan to reduce leverage and streamline the company • Reduced net debt by $67.2 million in 2023, with a further $18.7 million reduction in Q1 2024 • Asset sales closed in Q1 2024 - streamlined PPR’s portfolio and
Slide 4: Investment Highlights
Investment Highlights Investment Highlights ✓ Significantly reducing debt/leverage to enhance shareholder value with Prudential Capital becoming principal shareholder ✓ Focused on well servicing & optimization ✓ Low risk in-fill drilling to enhance existing properties ✓ Wide breadth of growth opport
Slide 5: 2023 Reserves
Reserves 2023 Reserves Underpinned by low decline oil assets with long RLI and strong Netbacks (3) Long reserve life Pro Forma Year-End 2023 Reserves Summary (1) 16.2 1P / 23.7 2P reserve life index (1,3) Proved Total Total proved plus developed proved (1P) probable (2P) producing (PDP) B.T. NPV10 L
Slide 6: 2023 Reserves Benchmarking
Reserves 2023 Reserves Benchmarking PPR trades at a substantial discount on a reserve basis relative to peers Peer Benchmarking (EV to 1P/2P NPV10) (1,2) Net Asset Value per Share (2,3) (C$/sh.) Current Share Price 1P 2P 2.50x $0.50 $0.45 2.00x $0.44 $0.40 $0.35 1.50x $0.33 $0.30 $0.25 1.00x $0.24 $
Slide 7: Growth Opportunities
Growth Opportunities 7 TSX: PPR
Slide 8: Summary of Growth Opportunities
Focus on High Value, Low Risk Central Alberta Project Inventory Summary of Growth Opportunities Provost Michichi Provost • Stacked drilling locations in • Sparky, multi-leg locations the Banff and Basal Quartz identified • Several locations • Infrastructure in place • De-risked by offset • Recent gr
Slide 9: Low Risk, High Return Drilling Opportunities Available
Economic Drilling Opportunities Across All Assets 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 10: The Michichi Area is the Reliable Cash-Flow Generator for PPR
The Michichi Area is the Reliable Cash-Flow Generator for PPR Michichi Basal Quartz • Prime Basal Quartz land de-risked by off-setting competitors Legend: 13-28 Sales Basal Quartz HZ Wells • High impact wells with quick payouts PPR Basal Quartz Rights • Stacked potential with Banff sand PPR Pipeline
Slide 11: 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 12: 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 13: 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 14: 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 15: PPR Investment Proposition
Unlock value through multi-step process PPR Investment Proposition Maximize Shareholder Develop Returns Large Drilling Unlock Inventory Near-Term Value Create value for shareholders Restructure Sustainably grow production Debt Approx. 16 years and 24 years while continuing to reduce ✓ of 1P and 2P r
Slide 16: Experienced Management and Board
Corporate Information Experienced Management and Board Management Independent Board of Directors Ryan Rawlyk, P.Eng Director Position Current / Prior Experience President & CEO, Director Patrick R. McDonald Chairman Current CEO – Carbon Energy Corp. Ryan Rawlyk is a Professional Engineer with more t
Slide 17: 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 Bennett Jones LLP MLT Aikins LLP Reserve Engineers Sproule Associates Limited PPR
Slide 18: 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 19: 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 20: Reader Advisories: Non-GAAP 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 21: 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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