Prairie Operating Co. Announces $12.5 Million Strategic Acquisition to Accelerate Growth in the DJ Basin
Prairie Operating Co. (Nasdaq: PROP) has announced a strategic $12.5 million acquisition of assets from Edge Energy II LLC in the DJ Basin. The cash transaction, funded through the company's credit facility, adds approximately 11,000 net acres to Prairie's footprint, expanding it to 60,000 net acres total.
The acquisition includes current production of 190 Boepd from 47 wells, with an ~88% working interest. The deal provides 40 two-mile lateral future inventory locations, eight approved permits, and eight permits in process. Prairie plans to begin development in August 2025, starting with the fully permitted Simpson pad.
Prairie Operating Co. (Nasdaq: PROP) ha annunciato un'acquisizione strategica di asset per 12,5 milioni di dollari da Edge Energy II LLC nel bacino DJ. La transazione in contanti, finanziata tramite la linea di credito dell'azienda, aggiunge circa 11.000 acri netti alla presenza di Prairie, portando il totale a 60.000 acri netti.
L'acquisizione comprende una produzione attuale di 190 Boepd da 47 pozzi, con un interesse operativo di circa l'88%. L'accordo include 40 potenziali siti futuri con laterali di due miglia, otto permessi approvati e otto in fase di approvazione. Prairie prevede di iniziare lo sviluppo nell'agosto 2025, partendo dal sito Simpson completamente autorizzato.
Prairie Operating Co. (Nasdaq: PROP) ha anunciado una adquisición estratégica de activos por 12,5 millones de dólares a Edge Energy II LLC en la cuenca DJ. La transacción en efectivo, financiada a través de la línea de crédito de la compañía, añade aproximadamente 11,000 acres netos a la presencia de Prairie, expandiéndola a un total de 60,000 acres netos.
La adquisición incluye una producción actual de 190 Boepd de 47 pozos, con un interés operativo de aproximadamente el 88%. El acuerdo ofrece 40 ubicaciones futuras con laterales de dos millas, ocho permisos aprobados y ocho en proceso. Prairie planea comenzar el desarrollo en agosto de 2025, iniciando con el sitio Simpson totalmente autorizado.
Prairie Operating Co. (나스닥: PROP)는 DJ 분지에 위치한 Edge Energy II LLC의 자산을 1,250만 달러에 전략적으로 인수했다고 발표했습니다. 회사의 신용 시설을 통해 자금을 조달한 현금 거래로, 약 11,000 순에이커를 Prairie의 보유지에 추가하여 총 60,000 순에이커로 확장합니다.
이번 인수에는 47개의 유정에서 약 88% 작업 지분으로 현재 190 Boepd의 생산량이 포함되어 있습니다. 계약에는 2마일 측선이 있는 40개의 미래 개발 후보지, 8개의 승인된 허가증, 그리고 8개의 허가 진행 중인 건이 포함되어 있습니다. Prairie는 2025년 8월부터 완전히 허가된 Simpson 패드부터 개발을 시작할 계획입니다.
Prairie Operating Co. (Nasdaq : PROP) a annoncé une acquisition stratégique d'actifs pour 12,5 millions de dollars auprès de Edge Energy II LLC dans le bassin DJ. La transaction en espèces, financée via la facilité de crédit de la société, ajoute environ 11 000 acres nets à l'empreinte de Prairie, portant le total à 60 000 acres nets.
L'acquisition comprend une production actuelle de 190 Boepd provenant de 47 puits, avec un intérêt opérationnel d'environ 88 %. L'accord offre 40 emplacements futurs avec des latéraux de deux miles, huit permis approuvés et huit en cours de traitement. Prairie prévoit de commencer le développement en août 2025, en commençant par la plateforme Simpson entièrement autorisée.
Prairie Operating Co. (Nasdaq: PROP) hat die strategische Übernahme von Vermögenswerten im Wert von 12,5 Millionen US-Dollar von Edge Energy II LLC im DJ-Becken angekündigt. Die Bartransaktion, finanziert über die Kreditfazilität des Unternehmens, erweitert Prairies Flächenbestand um etwa 11.000 Netto-Acre und bringt die Gesamtfläche auf 60.000 Netto-Acre.
Die Übernahme umfasst eine aktuelle Produktion von 190 Boepd aus 47 Bohrlöchern mit einem Arbeitsanteil von etwa 88 %. Der Deal beinhaltet 40 zukünftige Standorte mit zwei Meilen langen Lateralen, acht genehmigte Genehmigungen und acht Genehmigungen in Bearbeitung. Prairie plant, im August 2025 mit der Entwicklung zu beginnen, beginnend mit dem vollständig genehmigten Simpson-Pad.
- Non-dilutive cash transaction preserving shareholder value
- Immediate production of 190 Boepd from 47 wells
- High working interest of ~88%
- Addition of 40 two-mile lateral drilling locations
- 16 permits (8 approved, 8 in process) accelerating development timeline
- Expansion of DJ Basin footprint by 11,000 net acres to 60,000 total
- Increases debt through credit facility utilization of $12.5 million
Insights
Prairie's $12.5M Edge Energy acquisition strategically expands DJ Basin operations with immediate production and development-ready inventory.
Prairie Operating's
The transaction's structure is particularly noteworthy - funded through existing credit facilities rather than equity issuance, maintaining shareholder value without dilution. At a high level, Prairie is acquiring ~190 Boepd of current production from 47 wells, along with 40 future drilling locations (two-mile laterals), creating both immediate cash flow and long-term development potential.
The ~88% working interest is significant, giving Prairie substantial operational control over development decisions. The eight approved permits and eight additional permits in process provide regulatory clarity and reduce execution risk for near-term development. Most importantly, the fully permitted Simpson pad creates an immediate drilling opportunity, with development scheduled to begin in August 2025.
This acquisition demonstrates Prairie's disciplined approach to growth - targeting complementary assets that can be efficiently integrated into existing operations. The transaction appears value-accretive based on the production and inventory acquired relative to the purchase price. For a smaller player like Prairie, these strategic bolt-on acquisitions can drive meaningful production growth and inventory expansion without the integration challenges of larger transactions.
Off-Market Transaction Adds Existing Production, Tier-One Inventory, and Immediate Development Opportunities
Houston, TX, July 02, 2025 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company” or “Prairie”), an independent energy company engaged in the development and acquisition of oil and natural gas resources in the Denver-Julesburg (DJ) Basin, today announced the acquisition of certain assets from Edge Energy II LLC (“Edge Energy”) in an off-market transaction for
“This strategic and highly accretive bolt-on acquisition enhances our existing footprint in the DJ Basin,” said Edward Kovalik, Chairman and CEO. “With a high working interest, established cash flow, and development-ready drilling locations, this transaction aligns with our capital allocation strategy and adds near-term value and long-term inventory.”
The Edge Energy acquisition represents a strategic addition of approximately 11,000 net acres to expand Prairie’s DJ Basin footprint to approximately 60,000 net acres. The attractive mix of current production and future development of the Edge Energy assets enhances Prairie’s inventory depth, accelerates near-term development plans, and supports continued cash flow growth.
KEY TRANSACTION HIGHLIGHTS
- Acquisition Price:
$12.5 million - Non-Dilutive: Cash transaction utilizing credit facility
- Net Acres: ~11,000
- Current Production: ~190 Boepd (from 47 operated and non-operated PDP wells)
- Working Interest: ~
88% - Future Inventory: 40 (two-mile laterals)
- Permits: Eight approved permits and eight additional permits in process
- Development-Ready: Simpson pad fully permitted and ready to drill
DEVELOPMENT AND INTEGRATION PLANS
The Company plans to commence development of the acquired assets in August 2025, starting with the fully permitted Simpson pad. Simultaneously, the Company will begin permitting additional PUD locations to enable near-term future development. This acquisition delivers immediate scale, existing production, and a clear path to growth through high-quality operated drilling inventory.
About Prairie Operating Co.
Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil and natural gas resources in the United States. The Company’s assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil and natural gas resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation. More information about the Company can be found at www.prairieopco.com.
Cautionary Statement about Forward-Looking Statements
The information included herein and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on the Company’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. The Company cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. There may be additional risks not currently known by the Company or that the Company currently believes are immaterial that could cause actual results to differ from those contained in the forward-looking statements. Additional information concerning these and other factors that may impact the Company’s expectations can be found in the Company’s periodic filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 10-K filed with the SEC on March 6, 2025, and any subsequently filed Quarterly Report and Current Report on Form 8-K. The Company’s SEC filings are available publicly on the SEC’s website at www.sec.gov.
Investor Relations Contact:
Wobbe Ploegsma
info@prairieopco.com
832.274.3449
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