Prairie Operating Co. Announces Unanimous Approval of Genesis Oil and Gas Development Plan Adding Multi-Year Inventory of Development Drilling Locations
- None.
- None.
The approval of Prairie Operating Co.'s Genesis I Oil & Gas Development Plan by the Colorado Energy and Carbon Management Commission is a significant milestone for the company. This development is poised to expand Prairie's drilling inventory in the Denver-Julesburg (DJ) Basin, which is a key oil and gas producing region in the United States. The addition of 72 new wells, with a mix of three-mile and two-mile lateral wells, represents a substantial increase in potential production capacity. The lateral length of a well is indicative of the well's reach and can impact the extraction efficiency and production volume.
Moreover, the strategic bolt-on acquisition and the anticipated closing of the Nickel Road Operating asset acquisition could further bolster Prairie's asset base. Investors should note that such expansions often require significant capital expenditures and the returns on these investments depend on various factors, including oil prices, operational efficiency and regulatory compliance costs. The announcement indicates Prairie's confidence in its ability to sustain and possibly increase production levels, which could have positive implications for revenue growth and the company's stock valuation in the medium to long term.
The ECMC's approval also highlights the regulatory environment in which Prairie operates. The commission's mandate to oversee energy and carbon management suggests that Prairie's Genesis I OGDP has met certain environmental and safety standards. Given the current global emphasis on environmental sustainability and carbon footprint reduction, the company's ability to navigate regulatory requirements and secure approvals is crucial. Investors should consider the potential risks associated with environmental regulations, which can affect project timelines and costs.
It is also worth noting that the development of the Genesis II OGDP, comprising up to 5,760 mineral acres, indicates Prairie's commitment to further expansion while adhering to regulatory standards. The company's proactive approach to preparing and submitting the second OGDP for approval demonstrates foresight in project planning and could signal to investors a strong management team that is effectively positioning the company for future growth within the regulatory framework.
From a market perspective, the announcement of the OGDP approval and the planned submission of a second OGDP may be viewed positively by investors, as it suggests a clear growth trajectory for Prairie. The company's mention of a multi-year inventory of projects provides visibility into future operations, which is often appreciated by the market for its potential to reduce uncertainty. The ability to maintain a robust drilling inventory also offers Prairie the flexibility to adapt to changing market conditions, which can be a competitive advantage.
However, it is important to monitor commodity prices, as the profitability of oil and gas operations is closely tied to these. Fluctuations in oil prices can significantly impact the financial outcomes of the projects. Additionally, the potential impact on Prairie's cash flow and balance sheet from the development of these wells and acquisitions should be considered, as the oil and gas industry is capital-intensive with high upfront costs. Investors would benefit from understanding how these developments fit into Prairie's overall financial strategy and risk management approach.
HOUSTON, Texas, March 14, 2024 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company” or “Prairie”) today announced the Colorado Energy and Carbon Management Commission (“ECMC”) approved the Company’s Genesis I Oil & Gas Development Plan (“OGDP”).
The Genesis I OGDP encompasses 72 wells on two pads, developing 9-square miles of subsurface minerals in rural Weld County, Colorado. The two pads, the Burnett and Oasis, will develop up to 18 three-mile lateral wells and up to 54 two-mile lateral wells, respectively. Combined with the previously announced bolt-on acquisition earlier this year, the Company has added 80 new wells to its inventory in 2024 and will soon have over 140 permits upon the anticipated closing of the Nickel Road Operating (“NRO”) asset acquisition announced in January.
"I would first like to thank our team at Prairie and the leadership and staff at the ECMC, we very much appreciate their supportive comments during the hearing,” stated, Ed Kovalik, Chairman and CEO. “Operationally, the new permits provide a multi-year inventory of projects for Prairie in the DJ Basin, giving us visibility well into 2025 while allowing us to maintain a robust drilling inventory that offers flexibility in scheduling.”
In addition, Prairie has commenced work on the preparation and submission of a second Genesis OGDP (the “Genesis II OGDP”), consisting of up to 5,760 mineral acres of subsurface development, with two pad locations drilling between 42 and 54 planned wells. The Company is targeting an April 2024 submittal for the Genesis II OGDP with the ECMC.
About Prairie Operating Co.
Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of proven, producing 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.
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 31, 2023, 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
wp@prairieopco.com
832.274.3449
FAQ
What did Prairie Operating Co. announce regarding its Genesis I OGDP?
How many new wells has Prairie added to its inventory in 2024?
What is the total number of permits expected for Prairie after the NRO asset acquisition?
What is Prairie's plan for the Genesis II OGDP?
