Junior oil company sells northern stakes, shifts focus to central, southern Alberta

By MEDICINE HAT NEWS on November 1, 2023.

https://www.medicinehatnews.com@MedicineHatNews

Junior oil company Prairie Provident had sold its northern Alberta operations and will focus on developing its central and southern Alberta areas, including a field near Brooks.

The company announced Monday it had sold fields it operates near Whitecourt, known as Evi, and a smaller property near Provost.

“A portion of the proceeds will be directed to a development program designed to increase production, cash flow and reserves value from … core areas located in central and southern Alberta, including Princess,” the Calgary-based company stated.

Evi, with a production of nearly 975 barrels of oil equivalent per day, is sold to an unnamed private producer for cash totalling $27 million, while $44 million in abandonment liabilities come off Prairie Provident’s books.

The smaller Provost Property, 70 BOE per day, sold for $1.8 million with some adjustment for oil prices over the next two years.

That “(disposes) undercapitalized legacy assets” and builds “upon the recapitalization initiated in May 2023 … in turn allowing Prairie Provident to focus on higher return development opportunities in central and southern Alberta.”

The sales leave Prairie Provident with production of about 2,500 BOE per day, according to recent financial statement.