Prairie Provident Resources Announces Second Quarter 2026 Results

CALGARY, Alberta, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Prairie Provident Resources Inc. ("Prairie Provident" or the "Company") (TSX:PPR) announces its financial and operating results for the second quarter of 2026. The Company’s interim financial statements for the three and six months ended June 30, 2026, and related Management’s Discussion and Analysis (“MD&A”) are available on the Company’s website at www.ppr.ca and filed on SEDAR+ at www.sedarplus.ca.

Q2 2026 REVIEW AND UPDATE

• Production averaged 2,153 boe/d (57% liquids)¹ for Q2 2026 as Prairie Provident has continued to focus spending on well and facility optimization. In the first half of 2026, with no new wells drilled, the capital efficient optimization work has flattened corporate decline at 2,178 boe/d (59% oil and natural gas liquids)¹;
• Operating expenses were $38.88/boe for Q2 2026, a 30% increase relative to the $29.86/boe in Q1 2026 and a 53% increase relative to the $25.37/boe in Q2 2025 due to higher workover spending to maintain production in Q2 2026;
• Operating netback² for Q2 2026 was $3.9 million ($19.73/boe), a $0.4 million increase from Q1 2026 and a $1.0 million decrease from Q2 2025. The increase relative to Q1 2026 was as a result of higher realized commodity prices due to the ongoing Middle East conflict;
• Net loss of $6.3 million for Q2 2026, a $0.2 million reduction compared to Q2 2025. This decrease was driven by non-cash impairment reversals and lower depletion and depreciation expense in the current quarter; and
• At June 30, 2026, the Company was in breach of its financial debt covenants as described in the MD&A. In such case, the First Lien Loan and the Second Lien Notes lenders have the right to demand immediate repayment of all amounts owed under both facilities. As a result of this breach, the First Lien Loan and Second Lien Notes debt is classified as current at June 30, 2026. The Company continues to have discussions with its lenders.

^{1 Comprised of medium crude oil, natural gas liquids (NGLs) and conventional natural gas in the volumes indicated as crude oil and condensate, NGLs and natural gas in the "Financial and Operating Summary" table below.
2 Operating netback is a Non-GAAP financial measure and is defined below under "Advisories - Non-GAAP and Other Financial Measures".}

^{1 This is a Non-GAAP measure. For further information, refer to "Advisories - Non-GAAP and Other Financial Measures" below.
2 The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. Boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. Refer to "Advisories – Oil and Gas Reader Advisories – Barrels of Oil Equivalent" below.
3 On December 31, 2025, a share consolidation was effected on a 30-to-1 basis. Per share numbers have been adjusted on a retroactive basis.}

ABOUT PRAIRIE PROVIDENT

Prairie Provident is a Calgary-based company engaged in the development of oil and natural gas properties in Alberta. The Company's strategy is to optimize cash flow from its existing assets to fund low-risk development and maintain stable cash flow while limiting its production decline.
For further information, please contact: Dale Miller, Executive Chairman
Phone: (403) 292-8150
Email: investor@ppr.ca

ADVISORIES

Oil and Gas Reader Advisories

Barrels of Oil Equivalent

The oil and gas industry commonly expresses production volumes and reserves on a "barrel of oil equivalent" ("boe") basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet to one barrel of oil. The intention is to sum oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants. A boe conversion ratio of six thousand cubic feet to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead nor at the plant gate, which is where Prairie Provident sells its production volumes. Boe may, therefore, be a misleading measure, particularly if used in isolation. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency ratio of 6:1, utilizing a 6:1 conversion ratio may be misleading as an indication of value.

Non-GAAP and Other Financial Measures

This news release discloses certain financial measures that are 'non-GAAP financial measures', 'non-GAAP ratios' or 'supplementary financial measures' within the meaning of applicable Canadian securities laws. Such measures do not have a standardized or prescribed meaning under International Financial Reporting Standards (IFRS) and, accordingly, may not be comparable to similar financial measures disclosed by other issuers. Non-GAAP and other financial measures are provided as supplementary information by which readers may wish to consider the Company's performance but should not be relied upon for comparative or investment purposes. Readers must not consider Non- GAAP and other financial measures in isolation or as a substitute for analysis of the Company's financial results as reported under IFRS. For a reconciliation of each non-GAAP measure to its nearest IFRS measure, please refer to the "Non-GAAP and Other Financial Measures" section of the MD&A.

Following is additional information on non-GAAP and other financial measures used in this news release.

Adjusted Funds Flow ("AFF") - AFF is a Non-GAAP financial measure calculated based on net cash from operating activities before changes in non-cash working capital, transaction costs, restructuring costs and other non-recurring items. The Company believes that AFF provides a useful measure of the Company's operational performance on a continuing basis by eliminating certain non-cash charges and charges that are non-recurring or discretionary. Management utilizes the measure to assess the Company's ability to finance capital expenditures and debt repayments. AFF as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. AFF per share is calculated based on the weighted average number of common shares outstanding consistent with the calculation of earnings per share. AFF per share is a Non-GAAP ratio.

Operating Netback - Operating netback is a Non-GAAP financial measure commonly used in the oil and gas industry, which the Company believes is a useful measure to assist management and investors to evaluate operating performance. Operating netback included in this report were determined by taking oil and gas revenues less royalties and operating expenses. Operating netback, after realized gains (losses) on derivatives, adjusts the operating netback for only the realized portion of gains and losses on derivatives. Operating netback may be expressed in absolute dollar terms or on a per boe basis. Per boe amounts are determined by dividing the absolute value by working interest production. Operating netback per boe and operating netback, after realized gains (losses) on derivatives per boe are Non-GAAP ratios.

Capital Expenditures and Net Capital Expenditures - Capital expenditures and net capital expenditures are Non-GAAP financial measures commonly used in the petroleum and natural gas industry, which the Company believes are useful measures to assist management and investors to assess Prairie Provident's investment in its existing asset base. Capital expenditures is calculated as the sum of property and equipment expenditures and exploration and evaluation expenditures from the consolidated statements of cash flows that is most directly comparable to cash flows used in investing activities. Net capital expenditures is calculated as capital expenditures, plus acquisitions from business combinations, which is the outflow cash consideration paid to acquire oil and gas properties, less asset dispositions (net of acquisitions), which is the cash proceeds from the disposition of producing properties and undeveloped lands.

Working Capital (Deficit) and Adjusted Working Capital (Deficit) - Working capital (deficit), also known as net current assets (liabilities), is a Non-GAAP financial measure, calculated as current assets less current liabilities. Adjusted working capital (deficit) used in conjunction with debt and the calculation of "Adjusted Net Debt" below for the purpose of determining Total Leverage Ratio covenant and certain defined terms under the Company's First Lien Loan and Second Lien Notes debt agreements (see "Capital Resources and Liquidity - Debt" section in the MD&A), is a Non-GAAP financial measure. Adjusted working capital (deficit) is calculated as current assets excluding derivative assets and assets-held- for-sale and current liabilities, excluding the current portions of long-term debt, lease liabilities, decommissioning obligations, derivative liabilities, other non-cash liabilities and liabilities held for sale. In addition to measuring covenant compliance, this measure is used to assist management and investors in understanding liquidity at a specific point in time.

Net Debt and Adjusted Net Debt - Net debt is a Non-GAAP measure, defined as debt, plus working capital (deficit). Net debt is a measure commonly used in the oil and gas industry for assessing the liquidity of a company. Adjusted net debt is a Non-GAAP measure and used in conjunction with adjusted working capital (deficit) for the purpose of determining Total Leverage Ratio covenant and certain defined terms under the Company's debt agreements (see "Capital Resources and Liquidity - Debt" section in the MD&A). Adjusted net debt is calculated as the principal debt amount from lenders, plus adjusted working capital (deficit) determined in accordance with the Company's debt agreements. The principal debt amount from lenders differs from the carrying amount of the debt in the financial statements as reported under IFRS as outlined in the "Debt" section in the MD&A.