Prairie Operating Co. Announces $12.5 Million Strategic Acquisition to Accelerate Growth in the DJ Basin

Rhea-AI Summary

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.

Positive

• 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

Negative

• Increases debt through credit facility utilization of $12.5 million

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 $12.5 million in cash, funded through the Company’s credit facility, resulting in a non-dilutive transaction for shareholders.

“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

FAQ

What is the value of Prairie Operating's (PROP) acquisition from Edge Energy?

Prairie Operating acquired assets from Edge Energy for $12.5 million in cash, funded through the company's credit facility.

How many net acres did Prairie Operating (PROP) acquire in the DJ Basin deal?

The acquisition added 11,000 net acres to Prairie's DJ Basin footprint, expanding it to approximately 60,000 net acres total.

What is the current production from Prairie Operating's (PROP) newly acquired assets?

The acquired assets currently produce 190 Boepd from 47 operated and non-operated PDP wells.

When will Prairie Operating (PROP) begin developing the newly acquired assets?

Prairie plans to commence development in August 2025, starting with the fully permitted Simpson pad.

How many drilling locations did Prairie Operating (PROP) acquire in the Edge Energy deal?

The acquisition includes 40 two-mile lateral future inventory locations, along with 8 approved permits and 8 additional permits in process.