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Prairie Operating Co. Announces Warrant Exercise Resulting in $24 Million of Proceeds

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Prairie Operating Co. (Nasdaq: PROP) announced that Watermill Capital Partners exercised Series E B Warrants to purchase 4,000,000 shares of common stock, generating $24 million in proceeds. This follows Watermill's $12 million warrant exercise in November 2023, demonstrating continued support for Prairie's growth strategy. All Series E B Warrants have now been fully exercised, and all Series E preferred stock was converted into common stock, simplifying Prairie's capital structure.

Ed Kovalik, Chairman and CEO, stated that the proceeds will fuel growth plans, particularly the new Shelduck South project. This development involves an eight-well pad targeting the Niobrara B and C formations across 1,260 mineral acres, with production expected to begin in Q4 2024.

Prairie Operating Co. (Nasdaq: PROP) ha annunciato che Watermill Capital Partners ha esercitato i Warrants di Serie E B per acquistare 4.000.000 azioni ordinarie, generando 24 milioni di dollari in proventi. Questo segue l'esercizio di warrant da 12 milioni di dollari da parte di Watermill nel novembre 2023, dimostrando un continuo supporto per la strategia di crescita di Prairie. Tutti i Warrants di Serie E B sono stati ora completamente esercitati e tutte le azioni privilegiate di Serie E sono state convertite in azioni ordinarie, semplificando la struttura del capitale di Prairie.

Ed Kovalik, Presidente e CEO, ha dichiarato che i proventi alimenteranno i piani di crescita, in particolare il nuovo progetto Shelduck South. Questo sviluppo prevede un'area con otto pozzi che mirano a formare Niobrara B e C su 1.260 acri minerari, con produzione prevista per il quarto trimestre del 2024.

Prairie Operating Co. (Nasdaq: PROP) anunció que Watermill Capital Partners ejerció los Warrants de la Serie E B para adquirir 4,000,000 acciones ordinarias, generando 24 millones de dólares en ingresos. Esto sigue al ejercicio de warrant de 12 millones de dólares de Watermill en noviembre de 2023, demostrando un apoyo continuo a la estrategia de crecimiento de Prairie. Todos los Warrants de la Serie E B han sido completamente ejercidos y todas las acciones preferentes de la Serie E se han convertido en acciones ordinarias, simplificando así la estructura de capital de Prairie.

Ed Kovalik, Presidente y CEO, declaró que los ingresos alimentarán los planes de crecimiento, particularmente el nuevo proyecto Shelduck South. Este desarrollo implica una plataforma de ocho pozos que apunta a las formaciones Niobrara B y C a través de 1,260 acres minerales, con producción esperada para el cuarto trimestre de 2024.

프레리 운영 회사(Prairie Operating Co.)(나스닥: PROP)는 워터밀 캐피탈 파트너스(Watermill Capital Partners)가 E 시리즈 B 워런트를 행사하여 4,000,000주를 구입해 2400만 달러의 수익을 올렸다고 발표했습니다. 이는 2023년 11월 워터밀이 1200만 달러 워런트를 행사한 뒤로, 프레리의 성장 전략에 대한 지속적인 지원을 보여줍니다. 모든 E 시리즈 B 워런트는 이제 모두 행사되었으며, 모든 E 시리즈 우선주가 보통주로 전환되어 프레리의 자본 구조를 단순화했습니다.

에드 코발릭(Ed Kovalik) 회장 겸 CEO는 수익이 성장 계획을 지원할 것이며, 특히 새로운 셸덕 사우스 프로젝트에 집중할 것이라고 말했습니다. 이 개발은 1,260 에이커의 광물 매장지에서 니오브라라 B 및 C 층을 목표로 하는 8개 우물 플랫폼을 포함하며, 2024년 4분기부터 생산이 시작될 것으로 예상됩니다.

Prairie Operating Co. (Nasdaq: PROP) a annoncé que Watermill Capital Partners a exercé les Warrants de série E B pour acheter 4 000 000 d'actions ordinaires, générant 24 millions de dollars de produits. Cela fait suite à l'exercice de warrants de 12 millions de dollars par Watermill en novembre 2023, démontrant un soutien continu à la stratégie de croissance de Prairie. Tous les Warrants de série E B ont désormais été intégralement exercés, et toutes les actions privilégiées de série E ont été converties en actions ordinaires, simplifiant ainsi la structure du capital de Prairie.

Ed Kovalik, président et PDG, a déclaré que les revenus alimenteront les plans de croissance, en particulier le nouveau projet Shelduck South. Ce développement implique une plateforme de huit puits ciblant les formations Niobrara B et C sur 1 260 acres minéraux, avec une production prévue pour le quatrième trimestre 2024.

Prairie Operating Co. (Nasdaq: PROP) gab bekannt, dass Watermill Capital Partners die Warrants der Serie E B ausgeübt hat, um 4.000.000 Stammaktien zu erwerben, was 24 Millionen Dollar Erträge generiert. Dies folgt auf die Ausübung von Warrants im Wert von 12 Millionen Dollar durch Watermill im November 2023 und zeigt die anhaltende Unterstützung für die Wachstumsstrategie von Prairie. Alle Warrants der Serie E B wurden nun vollständig ausgeübt, und alle Vorzugsaktien der Serie E wurden in Stammaktien umgewandelt, was die Kapitalstruktur von Prairie vereinfacht.

Ed Kovalik, Vorsitzender und CEO, erklärte, dass die Einnahmen die Wachstumspläne fördern werden, insbesondere das neue Shelduck South-Projekt. Diese Entwicklung umfasst eine acht-brunnen-Plattform, die auf die Niobrara B und C Formationen über 1.260 Mineralflächen abzielt, mit Produktionsbeginn im vierten Quartal 2024.

Positive
  • Generated $24 million in proceeds from warrant exercise
  • All Series E B Warrants fully exercised
  • Conversion of Series E preferred stock to common stock
  • Simplified capital structure
  • New Shelduck South project development underway
Negative
  • None.

Insights

The $24 million warrant exercise by Watermill Capital Partners is a significant positive for Prairie Operating Co. This cash injection strengthens the company's balance sheet and demonstrates investor confidence in Prairie's growth strategy. The simplification of the capital structure through the conversion of Series E preferred stock is also noteworthy, as it can potentially improve the company's financial flexibility and appeal to a broader range of investors.

The $24 million proceeds, combined with the previous $12 million exercise, provide Prairie with a substantial $36 million in additional capital over the past year. This funding is important for executing the company's growth plans, particularly the Shelduck South development. The eight-well pad project targeting the Niobrara formation could significantly boost Prairie's production and revenue streams when it comes online in Q4 2024.

Investors should monitor Prairie's ability to effectively deploy this capital and the progress of the Shelduck South project, as these factors will be key determinants of the company's future financial performance and stock valuation.

The Shelduck South development represents a strategic move for Prairie Operating Co. in the competitive oil and gas sector. Targeting the Niobrara B and C formations is a smart play, as these are known for their potential in unconventional oil production. The 1,260 mineral acres provide a substantial footprint for the eight-well pad, suggesting significant production potential.

The timing of production start in Q4 2024 aligns well with current market dynamics. With global energy demand remaining robust and geopolitical uncertainties affecting supply, Prairie could benefit from favorable pricing environments. However, investors should be aware of the inherent risks in oil and gas exploration and production, including potential regulatory changes and price volatility.

The company's ability to secure funding and investor support for this project is a positive indicator. It suggests that Prairie has a compelling business case and the technical expertise to execute complex drilling operations. As the project progresses, key metrics to watch will be initial production rates, decline curves and overall operational efficiency.

The recent developments at Prairie Operating Co. highlight positive trends in corporate governance and investor relations. The full exercise of Series E B Warrants and conversion of Series E preferred stock into common stock represent a significant simplification of the company's capital structure. This move enhances transparency and potentially aligns shareholder interests more closely.

Watermill Capital Partners' continued investment through warrant exercises signals strong investor confidence in Prairie's management and strategy. This vote of confidence is particularly valuable in the often volatile oil and gas sector. The simplified capital structure could make Prairie more attractive to a broader range of investors and potentially improve liquidity in the stock.

From a governance perspective, the company's clear communication about its capital structure changes and strategic plans is commendable. However, investors should continue to monitor the company's board composition, executive compensation structures and overall corporate governance practices to ensure ongoing alignment with shareholder interests as Prairie embarks on its growth initiatives.

HOUSTON, Texas, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company” or “Prairie”) today announced that Watermill Capital Partners and its affiliates exercised Series E B Warrants (the “Warrants”) to purchase 4,000,000 shares of common stock of the Company, generating $24 million in proceeds.

This exercise follows Watermill Capital Partners’ $12 million warrant exercise in November 2023, highlighting their continued confidence and support for Prairie’s growth strategy.  With the exercise of these Warrants, all Series E B Warrants have now been fully exercised. Additionally, all of the Company’s Series E preferred stock was converted into common stock of the Company. This conversion of the Company’s Series E preferred stock and the exercise of the Company’s Series E B Warrants simplifies its capital structure, further enhancing Prairie’s position for long-term growth.

“We appreciate the confidence and support of Watermill Capital Partners as we continue to execute our strategy. The warrant exercise and associated cash proceeds provide additional fuel to our growth plans, particularly as we embark on our new project at Shelduck South.” stated Ed Kovalik, Chairman and CEO of the Company.

The Shelduck South development (part of the Genesis Bolt-on Assets) involves an eight-well pad targeting the Niobrara B and C formations across 1,260 mineral acres, with production expected to begin in the fourth quarter of 2024.

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.

Warrant Overview

The Warrants were originally issued in connection with a private offering of units completed by Prairie in August 2023. The Warrants featured a one-year duration with a $6.00 per share exercise price. The issuance of the shares of common stock issued upon exercise of the Warrants has not been registered under the Securities Act of 1933, as amended (the "Securities Act") or applicable state securities laws. Accordingly, the shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Forward-Looking Statement

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/A filed with the SEC on March 20, 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

How much did Prairie Operating Co. (PROP) raise from the recent warrant exercise?

Prairie Operating Co. (PROP) raised $24 million from the recent warrant exercise by Watermill Capital Partners and its affiliates.

When is production expected to begin for Prairie Operating Co.'s (PROP) Shelduck South project?

Production for Prairie Operating Co.'s (PROP) Shelduck South project is expected to begin in the fourth quarter of 2024.

What formations is Prairie Operating Co. (PROP) targeting in the Shelduck South project?

Prairie Operating Co. (PROP) is targeting the Niobrara B and C formations in the Shelduck South project.

How has Prairie Operating Co.'s (PROP) capital structure changed after the warrant exercise?

Prairie Operating Co.'s (PROP) capital structure has been simplified after the full exercise of Series E B Warrants and conversion of all Series E preferred stock into common stock.

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