Petrus Resources Announces Results of First Operated North Ferrier Well and Provides Operational Update
28 Januar 2022 - 1:00PM
Petrus Resources Ltd. ("
Petrus" or the
"
Company") (TSX: PRQ) is pleased to provide
information on the results of the Company’s recently drilled
operated well in North Ferrier as well as an operational update.
NORTH FERRIER
Petrus began execution of its Q4 2021 drilling
program in November, which included drilling the Company’s first
operated well in North Ferrier. The well was drilled, completed and
tested in early December before being tied-in and brought on
production near the end of the year. The average initial production
rate from this well over the first 30 days was 830 boe per day (34%
total liquids, 66% gas). This is a restricted rate due to
infrastructure limitations and the flow is currently fixed at that
rate. Given the estimated capability of the well and that it is
currently being produced at a restricted rate, Petrus expects the
production profile of this well to be flatter than other wells
drilled in this area; meaning, it will have a shallower decline and
will hold in at a higher production rate for longer than if it was
being produced at its full capability. The well flows to a
non-operated plant in which Petrus holds a working interest. We
anticipate some of the constraints will be alleviated in the coming
months, improving access to processing infrastructure and allowing
for restrictions to be reduced or removed.
The results of this well are an exciting
development for Petrus, as it is the first 100% working interest
well the Company has drilled in this area. The Company has a strong
land position in North Ferrier and sees the area as having
significant potential for long-term growth. Petrus will continue to
evaluate the economics and operational conditions of this asset
relative to other opportunities and prioritize capital investments
accordingly.
OPERATIONAL UPDATE
In December, two (2 net) wells were drilled in
Petrus’ core area of Ferrier. The wells were completed and tested
in late December and brought on production the first week of
January. Both wells are currently on production and performing in
line with expectations based on typical well performance in the
area. Ferrier will continue to be the core area of focus for Petrus
as the Company moves through 2022 and executes a $50-55 million
dollar capital budget. Ownership and control of critical
infrastructure makes the incremental cost of adding production in
the area very low, which supports superior economic returns.
The 2022 budget was contemplated using a price
forecast of WTI at US$69.00/bbl, AECO gas price at $3.20/GJ and a
foreign exchange rate of US$0.79. Under these pricing assumptions,
through the successful execution of the 2022 capital budget, Petrus
expects to:
-
Drill 14 gross wells in Ferrier, with the majority of the program
taking place in the last half of the year
-
Achieve a corporate 2022 exit production rate of 8,500 to 9,000 boe
per day (62% conventional natural gas, 25% light crude oil and 14%
natural gas liquids), a projected increase of 40-50% compared to
2021 average annual production
-
Generate $55-$60 million in annual funds flow, an anticipated
70-90% improvement compared to estimated 2021 results
-
Continue to reduce debt and further strengthen the Company’s
balance sheet
Given the inherent volatility of commodity
prices, the Company recognizes it is prudent to remain disciplined
and flexible. Petrus monitors the price of Canadian light oil and
natural gas on an ongoing basis and will evaluate capital
investments accordingly.
ABOUT PETRUSPetrus is a public
Canadian oil and gas company focused on property exploitation,
strategic acquisitions and risk-managed exploration in Alberta.
For further information, please contact:
Ken GrayPresident and Chief Executive OfficerT: 403-930-0889E:
kgray@petrusresources.comREADER ADVISORIES
This press release contains forward-looking statements. More
particularly, this press release contains statements concerning
plans related to: (i) Petrus' estimated future production volumes
(including volume types); (ii) the objectives of Petrus' 2022
capital budget; (ii) expectations with respect to the drilling
inventory and other expenditures subject to the Company's 2022
capital budget; (iii) the intention to reduce debt and further
strengthen the Company’s balance sheet; and (iv) expectations
regarding anticipated funds flows. The forward-looking statements
contained in this document are based on certain key expectations
and assumptions made by Petrus, including: (i) with respect to
capital expenditures, generally, and at particular locations, the
availability of adequate and secure sources of funding for Petrus'
proposed capital expenditure program and the availability of
appropriate opportunities to deploy capital; (ii) with respect to
drilling plans, the availability of drilling rigs, expectations and
assumptions concerning the success of future drilling and
development activities and prevailing commodity prices; (iii) with
respect to Petrus' ability to execute on its exploration and
development program, the performance of Petrus' personnel, the
availability of capital and prevailing commodity prices; (v) oil
and gas prices; (vi) currency exchange rates; (vii) royalty rates;
(viii) operating costs; (ix) transportation costs; (x) the
availability of opportunities to deploy capital effectively; (xi)
drilling results and associated production rates. Although Petrus
believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because
Petrus can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, the failure to obtain necessary
regulatory approvals, risks associated with the oil and gas
industry in general (e.g., operational risks in development,
exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and
projections relating to production, costs and expenses; health,
safety and environmental risks; commodity price and exchange rate
fluctuations; and uncertainties resulting from potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures). Readers are cautioned that the
foregoing list is not exhaustive of all possible risks and
uncertainties.
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about Petrus' prospective results of operations including,
without limitation, Petrus' anticipated future funds flows, which
are subject to the same assumptions, risk factors, limitations, and
qualifications as set forth above, including as it relates to
production rates, commodity prices and foreign exchange rates.
Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on FOFI. Petrus' actual results, performance
or achievement could differ materially from those expressed in, or
implied by, these FOFI, or if any of them do so, what benefits
Petrus will derive therefrom. Petrus has included the FOFI in order
to provide readers with a more complete perspective on Petrus'
future operations and such information may not be appropriate for
other purposes.
These forward-looking statements and FOFI are made as of the
date of this press release and the Company disclaims any intent or
obligation to update any forward-looking statements and FOFI,
whether as a result of new information, future events or results or
otherwise, other than as required by applicable securities
laws.
The oil and natural gas industry commonly expresses production
volumes and reserves on a barrel of oil equivalent (“boe”) basis
whereby natural gas volumes are converted at the ratio of six
thousand cubic feet to one barrel of oil. The intention is to sum
oil and natural gas measurement units into one basis for improved
measurement of results and comparisons with other industry
participants. Petrus uses the 6:1 boe measure which is the
approximate energy equivalence of the two commodities at the burner
tip. Boe’s do not represent an economic value equivalence at the
wellhead and therefore may be a misleading measure if used in
isolation.
Petrus Resources (TSX:PRQ)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Petrus Resources (TSX:PRQ)
Historical Stock Chart
Von Apr 2023 bis Apr 2024