The reserve report reflects the quality and scale of the Company’s 37,000 gross acre position, establishing a possibles reserves basis of ~285.3 MMBoe with a PV10 value of
"This independent third-party reserve report firmly validates the strength and scalability of our asset base.” stated,
- 285.3 MMBoe with corresponding PV10 of
$2.4 billion - Approximately 74% oil & liquids and 26% natural gas
- 412 Undeveloped drilling locations
The Company’s estimated possible reserves as of
Reserve Category | Formation | Well Count | Net Oil (mbo) | (mmcf) | Net NGL (mbngl) | Net Equiv. (mboe) | PV10 ($000s) |
POSS | |||||||
Codell | 148 | 45,947 | 99,806 | 15,852 | 78,434 | 641,081 | |
Niobrara | 264 | 96,688 | 338,511 | 53,766 | 206,873 | 1,722,856 | |
Total | 412 | 142,635 | 438,318 | 69,618 | 285,306 | 2,363,937 | |
Note: PV-10 is a non-GAAP financial measure. See the “Non-GAAP Financial Measure” section below.
(1) Strip Pricing as of
Non-GAAP Financial Measures
PV-10 is derived from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which is the most directly comparable GAAP financial measure for proved reserves. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10 percent. We believe that the presentation of PV10 is relevant and useful to our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our possible reserves before considering future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV10 is based on prices and discount factors that are consistent for all companies. Our possible reserves were derived from wells of offset operators in the same development area. We have shown possible reserves as we will not have proven reserves until our development plan commences.
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. These risks include, but are not limited to, general economic, financial, legal, political, and business conditions and changes in domestic and foreign markets; the ability of the Company to successfully develop its assets in
Investor Relations Contact
Wobbe Ploegsma
wp@prairieopco.com
Source:
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