CALGARY, Alberta, December 14, 2021 (GLOBE NEWSWIRE) – Prairie Provident Resources Inc. (“Prairie Provident”, “PPR” or the “Company”) is pleased to provide an operational update describing the successful drilling program of the second semester 2021 in its main Princess area. Two horizontal lithic glauconite wells and one horizontal Ellerslie well were commissioned in the second half of 2021. The company’s current average daily production, based on field estimates, is approximately 5,175 boe / j.¹ (69% liquids).

Princess Zone Update

The second half of 2021 3-well program began with 103 / 11-13-018-11W4 drilled in the Ellerslie Formation with 75% of the side reservoir in a fair to good reservoir with oil showings throughout. The 1919 m lateral section was completed with 16 fracturing stages spaced 110 m apart. The well was put into production on September 14^e and during the first 30 days of production, an average of about 111 bbl / d of heavy oil and 0.47 MMcf / d of conventional natural gas for a total of 190 boe / d.

104 / 14-12-019-11W4 was drilled in the lithic glauconite channel and encountered consistent petroleum showings throughout the lateral section peaking at 80% horizontal in a high quality reservoir. The 2010 m of lateral section was completed with 15 fracturing stages spaced 120 m apart. It went into production on October 2^sd and in the first 30 days of production, it produced on average about 185 bbl / d of heavy oil and 0.22 MMcf / d of conventional natural gas for a total of 220 boe / d.

Prairie Provident’s most recent lithic glauconite channel well was drilled in a southeastern block of promising land at 103 / 03-29-018-10W4. The well drilled approximately 2,400 m of high quality reservoir sands with excellent oil showings for 100% of the lateral. The coating was successfully cemented with 37 sleeves spaced approximately 65 m apart. The well was put into production on December 2^sd and in the first week of production, it produced on average about 817 bbl / d of heavy oil plus 0.86 MMcf / d of conventional natural gas for a total of 961 boe / d.

The second half investment program was executed for a total of approximately $ 6.9 million and is expected to be paid in 14 months with economic assumptions of WTI at $ 70 / bbl; AECO at CA $ 3.90 / Mpi; and CAD / USD at 0.79.

Once again, this demonstrates the Company’s ability to target and execute high value oil weighted drilling sites in the Princess area. The Company has reviewed completion methods and optimized fracture port spacing to increase the value of the remaining drilling opportunities in glauconite as well as other potential Ellerslie and Detrital drilling opportunities in the region.

The Company cautions that the short-term production rates disclosed in this press release are preliminary in nature and may not be indicative of stabilized ongoing production rates or future ratios between product types. Initial results are not necessarily indicative of long term well or reservoir performance or ultimate recovery. Actual results will differ from those achieved during an initial short-term production period, and the difference may be material.

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¹ Composed of an average production of approximately 2,220 bbl / d of light and medium crude oil, 1,196 bbl / d of heavy crude oil, 155 bbl / d of natural gas liquids and 9.62 MMcf of conventional natural gas.

ABOUT PRAIRIE PROVIDENT

Prairie Provident is a Calgary-based company dedicated to the exploration and development of oil and gas properties in Alberta. The Company’s strategy is to optimize cash flow from our existing assets, to develop a core water injection business at Evi (Slave Point Formation) and Michichi (Banff Formation) by providing flows of stable cash flow with low decline, and organically develop a new complementary area to facilitate reserves and production growth. The Princess region in southern Alberta continues to provide short cycle yields through the successful development of the Glauconite and Ellerslie formations.

For more information, please contact:

Prairie Provident Resources Inc.
Tony Berthelet
President and CEO
Phone. : (403) 292-8125
Email: [email protected]

Barrels of oil equivalent

The oil and gas industry typically expresses production volumes and reserves on a “barrel of oil equivalent” (boe) basis with natural gas volumes converted to the ratio of six thousand cubic feet to one barrel of oil. . The intention is to sum the units of measure of petroleum and natural gas into a single base for better analysis of results and comparisons with other industry participants. A six thousand cubic foot boe conversion ratio for one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent value equivalence at the wellhead or exit the mill, where Prairie Provident sells its production volumes. Boes can therefore be a misleading measure, especially if used in isolation. Since the value ratio based on the current price of crude oil to natural gas is significantly different from the 6: 1 energy equivalency ratio, using a 6: 1 conversion ratio can be misleading. as an indication of value.

Forward-looking statements

This press release contains certain statements (“forward-looking statements”) that constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future performance, events or circumstances, are based on internal assumptions, plans, intentions, expectations and beliefs, and are subject to risks and uncertainties, known and unknown, which may cause actual results or events to differ. substantially from those indicated or suggested therein. All statements other than statements of current or historical fact constitute forward-looking statements. Forward-looking statements are usually, but not always, identified by words such as “anticipate”, “believe”, “expect”, “intend”, “plan”, “budget”, “anticipate” , “Target”, “estimate”, “propose”, “potential”, “plan”, “continue”, “may”, “will”, “should” or similar words suggesting future results or events or statements concerning a prospect.

Without limiting the foregoing, this press release contains forward-looking statements regarding the expected payment schedule on Prairie Provident’s newest lithic glauconite channel well.

Forward-looking statements are based on a number of important Prairie Provident factors, expectations or assumptions which were used in making such statements, but which may prove to be inaccurate. Although the Company believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, one should not place undue reliance on forward-looking statements, which are inherently uncertain and depend on the accuracy of these expectations and assumptions. Prairie Provident cannot guarantee that the forward-looking statements contained herein will prove to be correct or that the expectations and assumptions on which they are based will be realized or will be realized. Actual results or events will differ and the differences may be material and unfavorable to the Company.

In addition to the other factors and assumptions identified herein, assumptions have been made regarding, among others: the results of drilling and development activities, and their consistency with past operations; the quality of the reservoirs in which Prairie Provident operates and the continued performance of existing wells (including production profile, rate of decline and mix of product types); the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of the Company’s reserve volumes; future prices of raw materials; future operating and other costs; future USD / CAD exchange rates; future interest rates; the availability of external funding and cash flow to fund current and future plans and expenditures, with external funding on acceptable terms; the impact of competition; the general stability of the economic and political environment in which Prairie Provident operates; general pursuit of current industry conditions; timely receipt of all required regulatory approvals; the Company’s ability to obtain qualified personnel, equipment and services in a timely and cost effective manner; the ability of the operator of projects in which Prairie Provident has an interest to operate the field in a safe, efficient and effective manner; field production rate and rate of decline; the ability to replace and expand reserves through acquisition, development and exploration; the timing and cost of construction and expansion of the pipeline, storage and facilities, and Prairie Provident’s ability to ensure adequate transportation of products; the regulatory framework relating to royalties, taxes and environmental matters in the jurisdictions in which Prairie Provident operates; and Prairie Provident’s ability to successfully market its oil and gas products.

The forward-looking statements included in this press release are not guarantees of future performance or promises of future results and should not be relied on. These statements, including the assumptions made about them, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-looking statements, including, not limited to: changes in commodity prices realized; changes in demand for or supply of Prairie Provident products; the initial stage of development of some of the areas and areas assessed; the potential for variation in the quality of geological formations targeted by Prairie Provident operations; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans by Prairie Provident or by third party operators; increased debt levels or debt service requirements; inaccurate estimate of Prairie Provident reserve volumes; limited, unfavorable or lack of access to capital markets; increased costs; inadequate insurance coverage; the impact of competition; and other risks which may be detailed from time to time in Prairie Provident’s public disclosure documents (including, without limitation, the Company’s current annual information form) as filed with the Canadian securities regulators securities and available electronically on the SEDAR website (www.sedar .com) under the Prairie Provident Issuer Profile. This list is not exhaustive.

The forward-looking statements contained in this press release are made only as of the date of this press release, and Prairie Provident assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. All forward-looking statements contained in this press release are expressly qualified by this cautionary statement.