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Arsenal, Lone Pine Canada Combine; Debut as New Company

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   |    Tuesday,September 13,2016

Lone Pine Resources Canada Ltd. and Arsenal Energy Inc. have completed a business combination to form Prairie Provident Resources Inc.

Operating areas include the Horn River Basin, Liard and Muskwa shale play. 

Prairie Pine Highlights:

  • Light and medium oil-weighted asset base focused on three core areas in Alberta (Evi, Princess and Wheatland), which offer meaningful growth potential through lower risk development drilling opportunities, a proven water flood program and future consolidation prospects;
  • Production base of approximately 4,000 boe/d comprised of approximately 71% oil and liquids and 29% natural gas;
  • Proved plus probable reserves of 18,489(1) Mboe as at December 31, 2015;
  • Combined land base of approximately 765,600 net acres (pro forma as at June 30, 2016), with over 170 unrisked internally identified drilling locations that remain economic and are expected to generate compelling returns at current commodity prices;
  • A senior secured credit facility of $55 million backed by Alberta Treasury Branches and Société Generale, to support ongoing development and continued growth through a robust capital program;
  • A strong balance sheet that is expected to position Prairie Provident to efficiently develop its inventory of capital projects as well as pursue accretive new opportunities;
  • A robust three-year hedge book that the Company believes will provide meaningful protection against commodity price volatility and underpins funds from operations; and
  • Operatorship of over 90% of its production and average working interests greater than 90%, in its core areas of Evi, Princess and Wheatland in Alberta.

Prairie Provident will be led by Tim Granger as President and Chief Executive Officer, who served in the same position with Lone Pine. He is joined by Lone Pine executives Mimi Lai, Vice President, Finance and Chief Financial Officer, and Robert (Bob) Guy, Vice President, Operations; and by former Arsenal executives Tony van Winkoop, who joins Prairie Provident as Vice President, Exploration after having previously served as President and Chief Executive Officer of Arsenal, and Gjoa Taylor, as Vice President, Land. The Board of Directors of Prairie Provident will be chaired by prior Lone Pine chair, Patrick R. McDonald, who will be joined by former Lone Pine directors David M. Fitzpatrick, Terence (Tad) B. Flynn, Ajay Sabherwal, Robert B. Wonnacott, and Tim Granger; and former Arsenal director Derek Petrie.

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