It rates the stock a buy with a $2 price target.
When it completes the previously flagged Marquee Energy acquisition, expected to close next month, the firm will be a much larger company with around 7,700 boe/d, an increase of around 34%, notes analyst Bill Newman.
It will also hold proven plus probable reserves (2P) reserves of 42.2 million boe, an increase of around 110%.
"The acquisition is accretive on a reserves, NAV and cash flow bases, and PPR is even more attractive on all valuation metrics," the analyst adds.
Newman also notes the read-across of the Surge Energy/ Mount Bastion Oil and Gas Corp transaction - the former buying the latter for $320 million.
The acquisition of MBOG for $320 million implies a potential value of $1.25 per share for Prairie, reckons Newman.
Surge pays $58,182 per flowing boe (barrel of oil equivalent) and $12.80/boe for 2P reserves.
"At the current market price, PPR is trading at approximately $21,300 per flowing barrel and an EV/2P reserves value of $3.97/boe."
Mackie concludes that the company remains highly undervalued currently trading at 13.2% of its core NAV (net asset value) estimate of $2.65/fd (fully diluted) share and 12.6% of its risked NAV of $2.78/fd share.