HOUSTON - Prairie Operating Co. (NASDAQ: PROP), an independent energy company, announced today its intention to begin an initial drilling program at its Shelduck South property in Colorado come August 2024. The development plan includes eight new wells across 1,280 mineral acres, targeting the Niobrara B and C formations.
The company has engaged Precision Drilling (NYSE:PDS) for the operation of a drilling rig designed to reduce environmental impact. This rig operates on electric line power and features natural gas generators with battery assistance, aligning with Prairie's commitment to lower emissions.
Chairman and CEO Ed Kovalik expressed enthusiasm for the strategic growth this project represents and its adherence to Colorado's environmental standards for oil and gas development. The drilling and completion of these wells are scheduled for the fourth quarter of 2024.
Prairie Operating Co., headquartered in Houston, focuses on acquiring and developing proven oil and natural gas resources in the United States, particularly in the Denver-Julesburg Basin.
The information in this article is based on a press release statement from Prairie Operating Co.
In other recent news, independent energy company Prairie Operating Co. is set to join the Russell 3000 Index. This inclusion, determined by market-capitalization rankings and style attributes, will also place Prairie Operating in either the large-cap Russell 1000 or small-cap Russell 2000 Index, as well as in applicable growth and value style indexes.
Chairman and CEO of Prairie Operating, Ed Kovalik, sees this as a reflection of the company's growth strategies and progress. He also anticipates potential benefits such as increased investor visibility and a broader investor base. The global index provider responsible for the Russell Indexes, FTSE Russell, underscores the importance of their annual reconstitution in maintaining the integrity of the benchmarks.
InvestingPro Insights
As Prairie Operating Co. gears up for its drilling program at Shelduck South, recent data from InvestingPro provides a snapshot of the company's financial health and market performance. With a market capitalization of $113.25 million, Prairie Operating Co. is navigating a challenging financial landscape, underscored by a negative P/E ratio of -0.88, indicating that investors are concerned about profitability in the near term.
The company's revenue growth is a bright spot, with an impressive increase of 501.39% in the last twelve months as of Q1 2024. This surge in revenue, coupled with a gross profit margin of 64.51%, showcases the company's ability to generate income from its operations. However, this growth is contrasted by significant losses, as reflected in an operating income margin of -1584.93%, pointing to substantial operational costs that exceed the company's gross profits.
Investors should note that Prairie Operating Co.'s stock has experienced notable volatility, with a 1-month price total return of -30.26% and a 1-week price total return of -12.44%. Yet, looking at a longer timeframe, the stock has delivered a 1-year price total return of 54.83%, signaling potential for those with a longer investment horizon.
InvestingPro Tips highlight that the company is quickly burning through cash and that its stock price movements are quite volatile. Moreover, the company's short-term obligations exceed its liquid assets, which could pose risks for investors. For a more comprehensive analysis, there are additional tips available on InvestingPro, which can be accessed by visiting https://www.investing.com/pro/PROP.
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