Prairie Operating (PROP) Status Update summary

Acquisition and Transaction Overview

• Announced acquisition of DJ Basin assets from Bayswater for $602.75 million in cash and stock, with closing expected in February 2025 and an effective date of December 1, 2024.

• The acquisition will be funded through cash on hand, $315 million in new borrowings, and $200 million from capital markets transactions.

• Pro forma daily production will increase to 28,000 BOE per day, and net acreage will expand by 80% to 54,000 acres.

• The deal is expected to significantly increase free cash flow, optimize capital structure, and provide meaningful infrastructure synergies.

• Acquisition aligns with a high-growth, value-driven M&A strategy in the DJ Basin.

Asset and Operational Highlights

• Inventory life extended to about 10 years with 586 gross operated locations and 69 new proven sites.

• Proved reserves rise to 104 million barrels, valued at $1.4 billion PV10, with a PV-10 of $1.36 billion for total proved reserves and $860 million for PDP reserves.

• Assets are liquids-rich, contiguous with existing holdings in rural Weld County, and focus on Niobrara and Codell formations.

• Pro forma Prairie will have approximately 500 PDP wells and 54,000 net acres.

• Weld County provides a stable regulatory environment and is responsible for 82% of Colorado's oil production.

Operational and Development Strategy

• Target formations (Nio A, B, C, and Codell) are well defined, supported by extensive well logs and 3D coverage over 90% of acreage.

• Optimal development plan includes 18 wells per drilling and spacing unit, targeting 70% oil in the black oil section.

• Pro forma inventory provides about 10 years of drilling runway at a pace of 60 wells per year.

• DJ Basin assets offer highly predictable, repeatable well results, outperforming other major U.S. basins in consistency.

• The company leverages best practices, infill leasing, and cost optimization to maximize returns.