Prairie Operating Co. Announces the Launch of Its Development Program
Prairie Operating Co. (Nasdaq: PROP) announced the commencement of its initial drilling program in August 2024. The development will take place on the recently acquired Shelduck South site, which spans 1,280 mineral acres targeting the Niobrara B and C formations. The project will involve drilling eight two-mile lateral wells using a Precision Drilling rig capable of operating on electric line power and equipped with natural gas generators and battery assist to minimize emissions. Prairie expects the wells to be drilled, completed, and turned to production by Q4 2024. CEO Ed Kovalik highlighted the alignment of this development with the company’s and Colorado's emission reduction commitments.
- Commencement of initial drilling program in August 2024.
- Development on Shelduck South site targeting Niobrara B and C formations.
- Eight two-mile lateral wells across 1,280 mineral acres.
- Use of Precision Drilling rig with emission-minimizing technology.
- Anticipated completion and production by Q4 2024.
- None.
Insights
The commencement of Prairie Operating Co.'s initial drilling program at Shelduck South is a significant development, particularly considering the scale of the project. The 8-well pad targeting the Niobrara B and C formations suggests a substantial investment in expansion, which could potentially lead to increased production and revenue growth in the coming quarters.
From a financial perspective, this kind of development could impact the company's cash flow and financial health. Investors should keep an eye on the costs associated with this drilling program and compare them to the expected revenue from the increased production. Additionally, it is important to monitor any potential delays or cost overruns in the drilling process, as these factors can negatively affect profitability.
Furthermore, the use of an electric line power drilling rig with natural gas generators and battery assist indicates a commitment to sustainability, which can have long-term benefits. This could attract environmentally conscious investors and potentially lead to favorable terms with regulatory bodies, which are increasingly focused on reducing emissions.
This development at Shelduck South is noteworthy within the oil and gas sector, especially given the current landscape where environmental considerations are becoming increasingly important. The use of advanced technologies to minimize emissions is a step that aligns with industry trends towards sustainable practices.
Drilling lateral wells in the Niobrara B and C formations can be highly productive, given the historical data on these formations which show high yield rates. However, this also comes with geological risks, such as variability in rock properties that can impact drilling efficiency and well productivity.
Securing reputable service providers like Precision Drilling, known for their advanced and efficient rigs, is a positive move. It not only ensures the operational efficiency of the project but also likely increases the probability of staying on schedule and within budget. Stakeholders should remain informed about the actual performance versus the projected outcomes as this can have significant implications for the company's reputation and financial standing.
HOUSTON, Texas, July 09, 2024 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company” or “Prairie”) today announced plans to commence its initial drilling program in August 2024, starting with an 8-well pad on the recently acquired bolt-on acquisition, “Shelduck South”.
The Shelduck South development will consist of eight two-mile lateral wells across 1,280 mineral acres, targeting the Niobrara B and C formations. The Company has contracted a drilling rig from Precision Drilling and secured various oil field service providers to perform all drilling and completion operations. The Precision drilling rig is capable of operating on electric line power and is equipped with natural gas generators with battery assist to minimize emissions.
"We are excited to commence our drilling program at Shelduck South in August," stated Ed Kovalik, Chairman and CEO of Prairie Operating Co. "This development not only underscores our strategic growth initiatives but also aligns with Prairie's and the state of Colorado's commitment to minimizing emissions in the development of its oil and gas resources.”
Prairie anticipates the wells will be drilled, completed, and turned to production in Q4 2024.
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 19, 2024, 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
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