Prairie Reports $2.4B Possible Reserves in Colorado

Prairie Operating Co. has reported a possible reserves basis of approximately 285.3 million barrels of oil equivalent (MMboe) at its non-producing position in Weld County, Colorado, citing an independent third-party evaluation.

“The reserve report reflects the quality and scale of the company's 37,000 gross acre position”, Prairie said in a news release Monday. The report established a possible reserves basis with a PV10 value of approximately $2.4 billion, the company said.

Prairie said the reserves are supported by 412 qualified locations across both the Niobrara and Codell formations that are part of the company's future development plan. Further, the company said it has “hundreds of additional locations beyond this initial 5-year development program that are not currently included in the report”.

As the acreage position is further delineated through internal development and offset drilling activity, Prairie expects material increases to its proven oil and gas reserves and PV10 valuation, according to the release.

"This independent third-party reserve report firmly validates the strength and scalability of our asset base", Prairie Chairman and CEO Ed Kovalik said. "We are confident our extensive drilling inventory will be a driving factor in creating consistent, long-term value for our shareholders. The team looks forward to filing permits and beginning our development program, as we have positioned the Company for significant growth."

Earlier in the month, Prairie executed its option to acquire the remaining Exok Inc. assets located in Weld County, Colorado. In conjunction, the company closed a $20 million Private Investment in Public Equity (PIPE) offering, according to a separate news release.

To fund the exercise of the Exok option, Prairie said it raised $20 million through the PIPE of its Series E preferred stock, common stock, and warrants to purchase the company's stock with an existing investor.

The Exok asset is offset by industry-leading operators and positioned within the core of the premier Denver-Julesburg Basin, Prairie said. After closing, the company will control a total of approximately 37,189 acres in Weld County, Colorado.

"I am pleased to share that the Company has fully exercised the option to acquire the remaining Exok assets, a move that not only accelerates our growth but also strengthens our overall position within a top-tier U.S. Shale Basin", Kovalik said. "This acquisition, coupled with the successful closing of a $20 million PIPE offering, highlights investor confidence in the Company's vision to become a world-class developer of high-quality assets."

"We look forward to filing our permit applications for acreage development and preparing both Niobrara and Codell development programs," Prairie President Gary Hanna said.

Meanwhile, Prairie formed a strategic partnership with High West Energy, in a move aimed at supplying electric power to all its field operations. This collaboration marks a significant step forward in the electrification of the majority of Prairie’s rural DJ Basin acreage position in northern Weld County, according to an earlier news release.

Prairie highlighted its comprehensive electrification strategy, which encompasses key areas within its operations, including the electrification of drilling rigs, the implementation of electric-driven compression at facilities, and the utilization of air-driven pneumatic devices. By transitioning away from diesel and field gas-powered operations, Prairie anticipates substantial reductions in greenhouse gas intensity and nitrogen oxide emissions, the company said.

"This strategic partnership highlights our unwavering commitment to seeking sustainable business opportunities that generate competitive long-term financial returns while prioritizing safe and environmentally responsible execution. The company's dedication to ESG principles remains a driving force behind our internal execution and investment decision strategy”, Kovalik said.

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