Mr. Ken Gray, reports

PETRUS RESOURCES ANNOUNCES FIRST QUARTER 2024 FINANCIAL AND OPERATING RESULTS

Petrus Resources Ltd. has released financial and operating results as at and for the three months ended March 31, 2024.

First quarter 2024 highlights:

• Production: Production was 9,783 barrels of oil equivalent per day, up 3 per cent from 9,474 boe/d in the fourth quarter of 2023. Notably, oil production was up 26 per cent quarter over quarter. The increase was due to a full quarter of production from the wells completed in the fourth quarter of 2023.
• Commodity prices: Total realized price was $31.42 per boe in the first quarter of 2024 compared with $30.60 per boe in the fourth quarter of 2023, up 3 per cent as higher oil weighting offset lower pricing.
• Funds flow: Generated funds flow of $16.3-million (13 cents per share) for the first quarter of 2024 compared with $16.5-million (13 cents per share) in the fourth quarter of 2023.
• Capital activity: Petrus invested $12.3-million of capital during the first quarter of 2024, drilling 10 gross (5.3 net) wells. Of these, three gross (3.0 net wells) were operated. Due to the timing of capital activity, production from these 5.3 net wells was not realized in the first quarter.
• Dividends: Petrus has declared a regular monthly dividend of one cent per share for a total of $3.7-million, paid during the first quarter of 2024.
• Net debt: Petrus maintained net debt at $63.1-million at the end of the first quarter of 2024. The net debt to annualized funds flow ratio was 0.9 times at March 31, 2024.

Outlook

The company expects to realize a full quarter of production in the second quarter from the 2.3 net non-operated wells drilled in the first quarter that are on stream. Petrus anticipates returning to the 2024 capital program in late spring, with completion operations on the three operated wells drilled in January tentatively scheduled for June.

For the balance of 2024, the company has hedged approximately 44 per cent of forecasted production at $2.94 per gigajoule for natural gas and $97 per barrel for oil. With this strategy, the company is well positioned to continue its monthly dividend payment. As always, Petrus will closely monitor changing market conditions and is ready to adjust its capital program accordingly, guided by its commitment to delivering sustainable returns to shareholders.

First quarter 2024 conference call

Date:  May 9, 2024

Time:  9 a.m. Mountain Time

Please refer the events page on Petrus's website for further conference call details and links.

Annual general meeting

The company's annual general meeting will be held at 240fourth (previously BP Centre) conference room A, 240, 4th Ave. Southwest Calgary, Alta., on Wednesday, May 29, 2024, at 1 p.m. Mountain Time.

Please refer the events page on Petrus's website for further AGM details and links.

An updated corporate presentation can be found on the company's website.

We seek Safe Harbor.