Oil & Gas Company's 'Borrowing Base Confirmed,' 2019 Capital Program Fully Funded

Source: Streetwise Reports   04/12/2019

This finance news was covered in a Mackie Research Capital Corp. report.

In an April 10 research note, Mackie Research Capital Corp. analyst Bill Newman reported that Prairie Provident Resources Inc.’s (PPR:TSX) US$60 million, senior-secured revolving note facility was confirmed. At year-end 2018, the company had drawn US$49 million on it.

With the confirmation, the company “should have the financial flexibility to execute on its 2019 capital program,” Newman added, the budget for which is CA$14.2 million. Of that allocated total, CA$12.3 million is for lower risk development work, including drilling three horizontal Glauconite wells at Princess in Southern Alberta. Also planned is expansion of the energy company’s waterflood program at its Evi property in Northern Alberta.

Also regarding the financial vehicle, Newman noted, the Prudential Capital Group relaxed some of the related covenants until year-end 2019 in consideration of the atypically wide Canadian oil price differentials that happened in Q4/18.

Mackie has a Buy rating and a CA$0.70 per share target price on Prairie Provident, whose stock is currently trading at around CA$0.20 per share.

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Disclosures from Mackie Research, Prairie Provident Resources Inc., April 10, 2019

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Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.

Bill Newman: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. Within the last two years, Mackie Research Capital has managed or comanaged an offering of securities for, and received compensation for investment banking and related services from Prairie Provident Resources Inc. Bill Newman has research coverage on Prairie Provident Resources Inc.

( Companies Mentioned: PPR:TSX, )