Prairie Lithium – Old wells or new wells?
Prairie Lithium initially explored extracting lithium from produced water generated by Saskatchewan oil operations, but shifted its strategy toward drilling dedicated lithium wells targeting the richest concentrations in formations like the Duperow, a rock body typically 150 metres thick in the region. CEO Zach Maurer said the company prioritised new wells to prove project economics first, while still seeing 'a future in old wells that have good casing integrity' as potential Tier 2 assets.
Maurer's economics illustrated the opportunity: brine carrying 50 mg/L of lithium holds roughly $7 of lithium value per cubic metre, and lithium prices had tripled since his initial projections. Lithium extraction could also extend marginal oil wells' lives by five to fifteen years. The company acquired three abandoned oil wells for $1 each in September 2021 and converted two exploration permits into 21-year mineral leases — Saskatchewan's first crown lithium leases.