CALGARY, Alberta, May 15, 2024 (GLOBE NEWSWIRE) -- Prairie Provident Resources Inc. ("Prairie Provident" or the "Company") (TSX:PPR) announces its operating and financial results for the first quarter ended March 31, 2024. The Company's interim consolidated financial statements and related Management's Discussion and Analysis (MD&A) for the quarter are available on its website at www.ppr.ca and filed on SEDAR+ at www.sedarplus.ca. FIRST QUARTER 2024 FINANCIAL AND OPERATING HIGHLIGHTS Production averaged 2,636 boe/d (59% liquids) for the first quarter of 2024, which was 29% or 1,097 boe/d lower than the same period in 2023, due to the previously announced sale of its Evi property and capital constraints, deferred well servicing, and natural declines. Operating expenses of $33.11/boe for the three months ended March 31, 2024, a decrease of $2.86/boe from the same period in 2023 principally due to the sale of the Evi property, which experienced higher operating costs and partially offset by increases in property and production taxes. First quarter 2024 operating netback1 before the impact of derivatives was $2.9 million ($12.01/boe), and $2.4 million ($9.99/boe) after realized losses on derivatives, a 36% and a 39% decrease, respectively, relative to the first quarter of 2023. The decrease was a result of lower realized pricing slightly offset by a decrease in royalties and operating costs. During the first quarter of 2024, the Company completed the sale of its Evi oil property in northern Alberta and certain non-core Provost assets, resulting in net cash proceeds of $24.2 million. Of the proceeds received, $20.0 million (US$14.8 million) was used to reduce advances under the Company's senior secured credit facility, with the remainder used to increase working capital. These dispositions resulted in a gain of $2.3 million being recorded in the first quarter. The Company recorded a loss of $4.6 million in the first quarter of 2024, a $12.5 million decrease from net income of $7.9 million in the same period in 2023. The decrease was primarily due to non-cash gains of $13.5 million resulting from the debt-for-equity settlement completed in May 2023. In addition, the decrease was reduced by lower expenses and a gain on property dispositions in the first quarter of 2024. The Company has significant tax pool coverage, including approximately $329 million of non-capital losses. Note: 1   Operating netback is a non-GAAP financial measure and is defined below under "Non-GAAP and Other Financial Measures". BASAL QUARTZ DEVELOPMENT OPPORTUNITIES The Basal Quartz/Ellerslie fairway in south central Alberta has seen a rapid increase in industry drilling activity due to high intensity frac completions. This has resulted in prolific oil wells with publicly disclosed initial production rates that are substantially higher than with conventional completions, generating attractive economics. The Company's large land position of 167,869 net acres in its Michichi core area has been internally evaluated for Basal Quartz potential. Prairie Provident is excited by the results being achieved by offsetting activity, with direct offset wells having disclosed initial production rates of approximately 800 boe/d. Prairie Provident has identified more than 40 Basal Quartz potential drilling opportunities targeting light/medium oil on its Michichi lands. Management-prepared estimates (based on internally developed type wells) forecast a payout period of approximately eight months and average estimated first year production of approximately 270 boe/d of light/medium oil. These potential drilling opportunities are not booked locations to which any reserves have been attributed in the most recent independent evaluation of Prairie Provident's reserves data, effective December 31, 2023, by Sproule Associates Limited. As at 2023 year-end the Company had 50 booked Banff drilling locations in Michichi. Production from successful Basal Quartz drilling will be processed through existing Company-owned infrastructure in the Michichi area. Prairie Provident currently owns and operates two oil batteries (one with LACT connection to Inter Pipeline), two natural gas plants with a combined inlet capacity of approximately 10 MMscf/d, three field booster compressor stations, and an extensive pipeline network at Michichi. Owning and controlling key infrastructure within the Basal Quartz/Ellerslie fairway provides Prairie Provident with a competitive advantage for the future development of this play. OTHER DEVELOPMENT OPPORTUNITIES Multilateral open-hole Sparky opportunities exist within the Provost core area that are adjacent to existing Company-owned infrastructure and pipeline connected to its LACT connected oil battery. Internally modelled estimates for these wells forecast a payout period of approximately nine months and estimated first year production of approximately 90 boe/d of light/medium oil. In the Princess area, numerous optimization and development opportunities remain in several horizons, such as the Ellerslie, Glauconite, and Detrital zones. Openhole multileg Ellerslie locations within Prairie Provident's portfolio of booked locations and potential drilling opportunities, as internally modelled, are forecast to have a payout period of approximately ten months and average estimated first year production of approximately 160 boe/d. FINANCIAL AND OPERATING SUMMARY   Three Months Ended ($000s except per unit amounts) March 31,2024 December,2023 Production Volumes     Crude oil and condensate (bbl/d) 1,495 2,049 Conventional natural gas (Mcf/d) 6,498 7,374 Natural gas liquids (bbl/d) 58 135 Total (boe/d) 2,636 3,413 % Liquids