Prairie Provident Resources

About

“Prairie Provident Resources Inc. explores for and develops oil and natural gas properties primarily in the Western Canadian Sedimentary Basin in Alberta. It explores for light and medium oil with associated natural gas. The company’s principal areas include the Wheatland and Princess properties located in Southern Alberta; and the Evi property located in the Peace River Arch area of Northern Alberta. It holds area of approximately 240,000 net acres in the Utica shale in Quebec’s Saint Lawrence lowlands. The company was incorporated in 2016 and is headquartered in Calgary, Canada. Prairie Provident Resources Inc. is a subsidiary of Lone Pine Resources Inc.”  Bloomberg

Corporate Highlights

4/10/2019: Seeking Alpha publishes article reviewing Company’s performance and outlook.

BDC Credit Reporter View

10/6/2018: Notwithstanding the merger with Marquee in September 2018, the Company’s stock price remains depressed. This remains a non income producing, non material investment for GSBD, with no upside yet in sight, but no material damage possible either except a $9mn Realized Loss if ever the stock is sold or is wiped out.

IIQ 2018: The $0.942mn valuation – a 90% discount to original cost- is the lowest since GSBD first invested in 2016. Leaving valuation at CCR 3.

Highlights

4/10/2019: Company amends covenants with lenders.

Prairie Provident Resources Inc. (“Prairie Provident”, “PPR” or the “Company”) is pleased to announce the confirmation of its US$60 million borrowing base under the Company’s senior secured revolving facility (the “Revolving Facility”). PPR has also finalized terms of amending agreements with Prudential Capital Group (“Prudential”) respecting its Revolving Facility and senior subordinated notes (the “Senior Notes”), which relax certain financial covenant thresholds effective for the quarter ending March 31, 2019 through the quarter ending December 31, 2019. Prairie Provident expects that the amended thresholds will provide it with additional financial flexibility and runway to execute its 2019 capital program and deliver long-term growth in reserves, production and cash flow for shareholders.

IVQ 2018: GSBD has $9.2mn invested in common stock at cost but FMV only $0.5mn. Not material.