Prairie Operating Co. Begins Completion of the Opal Coalbank Pad, Acquired from Bayswater

Opal Coalbank consists of nine DUC wells on track for production this summer

Previously announced drilling of Rusch Pad ahead of schedule

Recently announced strategic hedging program "in the money" by ~$70 million

HOUSTON, TX, April 28, 2025 (GLOBE NEWSWIRE) -- Prairie Operating Co. (NASDAQ:PROP) (the "Company" or "Prairie") – an independent energy company engaged in the development and acquisition of oil and natural gas resources in the Denver-Julesburg (DJ) Basin – today announced it is beginning completions of nine previously drilled but uncompleted ("DUC") wells acquired in the recent Bayswater transaction. 

"We are encouraged to see continued strong progress across our operational and financial initiatives," said Edward Kovalik, Chairman and CEO of Prairie. "The completion of the Opal Coalbank pad, in combination with the development of the Rusch Pad, exemplifies our commitment to growing production. The well-timed execution of our hedging program, now materially "in the money", provides the financial stability needed to execute these growth projects while protecting our downside in a volatile market. As we move forward, we remain focused on operational excellence, disciplined capital allocation, and long-term shareholder value creation."

Opal Coalbank Development: Unlocking Near-Term Cash Flow with Future Upside

The Opal Coalbank project spans two distinct DSUs and is currently in partial development, leveraging nine drilled but uncompleted (DUC) wells acquired from Bayswater. This phase of the project is focused on unlocking immediate cash flow through the completion of the existing DUCs—targeting six in the Codell and three in the Niobrara B.

Completions are set to begin in May, using Prairie's tailored design optimized through multivariate and geo-mechanical analysis. Production is on track to commence by summer. The broader Opal Coalbank project offers significant future upside as Prairie evaluates additional developments across both DSUs.

Rusch Pad: 11-Well Development Ahead of Schedule

On April 2, 2025, Prairie announced the launch of an 11-well development program at the Rusch Pad, utilizing one of Precision premier rigs in the basin. The program includes two-mile lateral wells alternating between the Niobrara A, B, and C Chalks and the Codell Sandstone. As of today, three wells have been successfully drilled and cased, with the fourth currently being drilled. Drilling is expected to be completed by early June, with hydraulic fracturing commencing shortly thereafter and first production anticipated in early August.

The use of Precision's premier rig has resulted in faster cycle times and significant emissions reductions due to its ability to operate on multiple forms of electric power. This early execution sets the tone for the overall development program, showcasing Prairie's commitment to operational excellence and cost-efficient production.

Hedging Program Locks in Strong Cash Flow

Prairie's strategic hedging program, executed prior to the recent pullback in commodity prices, now holds  mark-to-market "in the money" value of approximately $70 million, providing strong cash flow stability and pricing certainty for the Company.

The program covers approximately 85% of Prairie's remaining daily production for 2025, locking in prices at $68.27 per barrel WTI and $4.28 per MMBtu Henry Hub. For the period from 2026 through Q1 2028, the hedges secure pricing at $64.29 per barrel WTI and $4.09 per MMBtu Henry Hub. This disciplined hedge portfolio enhances visibility while mitigating market risk.

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.

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 "strive", "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 6, 2025, 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

[email protected] 

832.274.3449