Prairie Provident Resources : August 2023 Presentation
August 23, 2023 at 06:57 pm
Share
Re-Positioning to Unlock
Significant Value for
Shareholders
TSX: PPR
Annual General Meeting
August 23 2023
Corporate Overview
Prairie Provident Resources | June 2023
CORPORATE SUMMARY
Production (Q4 2022) (boe/d)
3,753
Production (H1 2023) (boe/d)
3,648
Production mix
63% Liquids
Reserves (2P)(1)
31.9MMboe
Reserve Life Index (2P)(1)
20.1 years
PDP decline(1)
3.9%
Tax pools(2)
~$851MM
MARKET SUMMARY
Shares outstanding(3)
715.3MM
Market capitalization(3)(4)
$88.1 MM
Net Debt(5)
$77.6MM
Enterprise value(6)
$160.9MM
Low Decline Asset Base with long reserve life & significant upside potential through waterflooding
Large Inventory of Economic drilling in
Princess, Michichi, Evi and Provost core areas
Experienced Executive,
Technical Team, and
Board of Directors
Evi
Provost Michichi/Wheatland
Princess
2
(1)
Based on YE 2022 independent reserves evaluation by Sproule Associates Limited effective December 31, 2022.
(2)
As at December 31, 2022.
(3)
Based on outstanding share count (fully diluted) as at June 30, 2023;
(4)
Calculated using PPR's TSX closing price of $0.085 per share on June 1, 2023.
TSX: PPR
(5)
June 30, 2023 Net Debt calculated using total borrowings outstanding less working capital. Working capital is calculated as current assets less accounts payable and accrued liabilities
(6)
Based on outstanding share count (fully diluted) and pro forma Net Debt. Refer to footnotes (3), (4), and (5) above.
Recent Recapitalization
Prairie Provident Resources | June 2023
PPR has recently executed a recapitalization that has significantly improved its balance sheet
Summary:
Unsecured notes converted to equity
New $5 million 2nd lien notes
Equity raise of $4 million
Secured credit facility extended to 07/01/2024
Benefits:
Pro forma leverage reduced from $137 million (YE 2022) to $72 million (Q2 2023)
Expected interest savings of over $6 million per year
Improved liquidity and flexibility
3
Pro Forma Recapitalization Overview
Significantly improves balance sheet health
Transaction &
PPR
PPR
H1 2023
Pro Forma
Dec. 31
Adjustments(1)
Jun. 30
Prairie Provident Resources | June 2023
Basic Shares Outstanding(2)
130.1
585.2
715.3
Existing Warrants
34.3
(34.3)
(3)
-
New Equity Financing Warrants
-
48.0
48.0
Options
2.8
0.2
3.0
FD Shares Outstanding (MM Sh.)
167.2
599.1
766.7
Market Capitalization(4) ($MM)
$19.2
$68.9
$88.1
Revolving Facility
$66.8
($0.6)
$66.2
Unsecured Notes
$69.9
($69.9)
-
New 2nd Lien
-
$4.9
$4.9
Total Borrowings Outstanding
$136.8
($65.7)
$71.7
Plus: Working Capital(5)
($11.1)
$4.6
($6.5)
Net Debt (6)($MM)
$147.8
($70.2)
$77.6
Net Debt ($MM)
$200
$150
$148
$100
$78
$50
$0
Current
Pro Forma
4
US$3.65MM issuance of second lien notes, Prudential's unsecured notes converted at $0.14 per share, and $4.0MM equity financing at $0.09 per unit. Excludes transaction costs.
Based on outstanding share count (basic) as at December 31, 2022 and June 30, 2023.
Assumes exercise of Prudential's existing warrants as part of conversion of unsecured notes.
(4)
Calculated using August 18, 2023 closing share price ($0.115) multiplied by fully diluted shares outstanding.
TSX: PPR
(5)
Calculated as current assets less accounts payable and accrued liabilities
(6)
Converted using the month end exchange rate of $1.00 USD to $1.35 CAD as at June 30, 2023 and $1.00 USD to $1.32 CAD as at June 30, 2023
Pro Forma Investment Highlights
Prairie Provident Resources | June 2023
Significantly reducing debt/leverage to enhance shareholder value with Prudential becoming a major shareholder in support of our strategy
Capital program will be focused on optimization and efficiency
Low risk in-fill drilling to enhance existing properties
Wide breadth of growth opportunities from deep inventory of drill ready locations
5(1) Pro forma fully diluted 766.7 million shares outstanding following conversion of Prudential's unsecured notes, exercise of Prudential's warrants and $4MM equity financing.
TSX: PPR
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Disclaimer
Prairie Provident Resources Inc. published this content on 23 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2023 17:56:08 UTC.
Prairie Provident Resources Inc. is a Canada-based oil and natural gas exploration company. The Company is engaged in the exploration and development of oil and natural gas, with conventional operations primarily focused on the Western Canadian Sedimentary Basin in Alberta. Its operating areas include Michichi, Princess and Evi. Its assets primarily consist of light and medium oil associated natural gas. The Company is primarily focused on development of its Wheatland and Princess properties in Southern Alberta and its Evi area located in the Peace River Arch area of Northern Alberta. Its Princess area in Southern Alberta is engaged in the development of the Glauc and Ellerslie formations. The Company's assets cover approximately 375,000 acres of area in Alberta. Its wholly owned subsidiaries include Prairie Provident Resources Canada Ltd., Lone Pine Resources Inc., Lone Pine Resources (Holdings) Inc., Arsenal Energy USA Inc. and Arsenal Energy Holding Ltd.