07:29 AM EDT, 05/15/2024 (MT Newswires) -- Prairie Provident Resources ( PRPRF ) said Wednesday that it swung to a net loss in the first quarter.

The oil and gas explorer reported a net loss of $4.6 million compared to a net income of $7.9 million.

The company attributed the decline to non-cash gains of $13.5 million resulting from the debt-for-equity settlement completed in May 2023.

Production averaged 2,636 barrels of oil equivalent per day (boe/d), a 29% decrease from 1,097 boe/d due to the sale of the Evi property as well as capital constraints, deferred well servicing, and natural declines.

Meanwhile, Prairie said the its land position of 167,869 net acres in its Michichi core area has been internally evaluated for Basal Quartz potential.

Management is forecasting a payout period of about eight months and average estimated first year production of about 270 boe/d of light/medium oil.