Source: Streetwise Reports 05/27/2019
Details of both events are described in a Mackie Research Capital Corp. report.
In a May 21 research note, Mackie Research Capital Corp. analyst Bill Newman reported that Prairie Provident Resources Inc. (PPR:TSX) acquired an option to expand its Princess core land by up to 13,440 acres, or 46%. This would increase the oil and gas company’s net undeveloped land position at Princess to 75.9 sections, or 48,582 acres.
“The acquisition of additional lands in the Princess area expands Prairie Provident’s inventory of potential drilling locations for the highly prolific Glauconite play,” added Newman.
In other news, Newman relayed, Prairie Provident will soon commence a two-well development drill program at Princess following the two successful exploration wells, 13-26-20-11W4 and 14-12-019-11W4, it drilled last year in the Lithic Glauconite sandstone channels.
One of the new wells will be drilled to the northwest of the 13-26 well along the same channel, Newman explained. The other will be drilled directly to the south of the 14-12 well that appears to extend northward onto the newly optioned property.
“The current two-well development drilling program at Princess offsets some of the best wells drilled in the area and has the potential to boost oil production in the near term,” Newman commented, adding they could pay out in under a year.
The analyst highlighted that Prairie Provident “remains highly undervalued,” currently trading at a discount to its peers. Based on its “long-term growth potential from its large inventory development oil locations and expanding waterflood programs,” Newman wrote, Mackie Research maintained its Buy recommendation and its CA$0.70 per share target price on Prairie Provident. The stock is now trading at around CA$0.11 per share.
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Disclosures from Mackie Research, Prairie Provident Resources Inc., May 21, 2019
RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
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.
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.