Petrus Announces Strategic Acquisition of Ferrier’s Cardium Assets, Canadian Business Journal

Calgary, Alberta, March 1, 2022 (GLOBE NEWSWIRE) — Petrus Resources Ltd. (““Petrus” or “society“) (TSX: PRQ) announces that a formal contract has been signed (“)agreement“) Acquire a privately owned limited liability association (“)LP“) And its general partner (“)GP“And together,Obtained entity“) Consideration of approximately $ 14.4 million consisting of 10 million shares of our common stock (“)stock“) Issued at a deemed price of $ 1.44 per share, based on the volume-weighted average trading price of shares on the Toronto Stock Exchange (“)TSX“) 5 trading days before the contract date (“)Get“). The acquisition is expected to close in early March and is subject to normal closing conditions, including TSX approval.

Acquisition highlights

The assets of the acquired entity are concentrated in the core of Petrus in Feria, Alberta. Through the acquisition, Petrus will acquire the status of an adjacent, highly stakeholder cardium land in Ferrier. Areas where most of the mining rights are leased and most of the acreage is secured through corporate sales transactions. The proximity of the acquired land to Petrus’ existing Ferrier assets allows current and future production from the assets to be linked to Petrus-owned and operated collection and processing infrastructure, which results in significant operational and cost. Is expected to have a synergistic effect. The acquisition will enable Petrus to leverage its expertise to successfully drill low-risk, low-cost, high-profit wells in this area.

The highlights of the acquisition are:

  • Strategic integration of high quality Cardium assets at Ferrier
  • High interest in the eight net sections of land that directly offset Petrus’ core development in Ferrier, the location of undeveloped cardium land
  • Meaningful drilling inventory of an estimated 40 unreserved drilling sites1Most of which are internally identified by Petrus as Tier 1 locations
  • Stable base production of 425boe / d2 (Conventional natural gas 83.0%, NGL 13.5%, light oil 3.5%) Estimated annual reduction rate is 10%3
  • Potential for significant operational cost savings through the development and use of infrastructure owned and operated by Petrus
  • Economics of attractive type curves for US $ 80 / bbl WTI and $ 4.00 / McfAECO


1 look “Estimate of excavation site“.

2 Average daily production is for December 2021.

3 look “Estimated rate of decrease“.

Related party issues

The acquisition is specifically managed and supervised by Ken Gray, President and Chief Executive Officer of both GP and Petrus, and two parties under the control of Ken Gray and Petrus, so related party transactions under applicable securities law. am. Shareholders (Stuart Gray and Glen Gray), in total, own or control approximately 69.5% of LP’s units and 50% of GP’s shares. Petrus Board of Directors (“board“) Established a committee of independent and indifferent directors of Petrus (“)Independent committeeConsisting of “), Don Cormac, Patrick Arnell and Peter Burberg, the Board considers and recommends the approval of the contract and the acquisition by the Board of Directors, withdrawing Ken Gray and Don Gray. In particular, the agreement and acquisition were approved based on the Independent Commission’s recommendations, a review and evaluation of the Independent Reserve Report prepared by GLJ Ltd., which came into effect on 31 December 2020, and November 2021. Mechanically updated on the 30th, we evaluate the amount and net current value of the acquired entity’s reserves and the advice we received from our financial advisors for the acquisition.

The acquisition is exempt from the formal valuation and minority shareholder approval requirements of the applicable securities law, as neither the fair market value of the subject of the acquisition nor the fair market value of the consideration for the acquisition will be exceeded, as long as interested parties are involved. Will be. 25% of our market capitalization.

About Petrus

Petrus is a Canadian public oil and gas company focused on real estate development, strategic acquisitions and risk-managed exploration in Alberta.

Please contact us for more information.

Ken Gray
President and Chief Executive Officer
T: 403-930-0889


Oil and gas recommendations

The oil and natural gas industry typically represents production and reserves on a barrel of oil equivalent (“boe”) basis, where the amount of natural gas is converted at a ratio of 6000 cubic feet per barrel of oil. The aim is to combine oil and gas measurement units into one foundation to improve measurement of results and comparison with other industry participants. Petrus uses a 6: 1 boe measure, which is the approximate energy equivalent of the two commodities at the tip of the burner. Boes do not represent the equivalence of economic value at the wellhead and can be misleading when used alone.

Estimate of excavation site

Unreserved drilling locations are our internal estimates based on industry practices and assumptions about the number of wells that can be drilled per section based on internal reviews. There are no reserves or resources (including accidental and future) in unreserved locations. Unreserved locations have been identified by Petrus management as estimates of multi-year drilling activity based on an assessment of relevant geological, seismic, engineering, production, and reserve information. There is no certainty that Petrus will drill all unreserved drilling sites, and if drilled, there is no certainty that such sites will result in additional oil and gas reserves, resources, or production. .. Where Petrus actually drills wells, including the number and timing, will ultimately be funding availability, regulatory approvals, seasonal restrictions, oil and gas prices, costs, and actual drilling results. , Depends on additional reservoir information. Obtained and other factors.

Estimated rate of decrease

Based on Petrus’s internally developed curve created as of December 31, 2021


In this press release, the following abbreviations have the following meanings:

Petroleum and natural gas liquids Natural gas
bbl Taru Mcf Thousand cubic feet
bbls barrel GJ Gigajour
NGL Natural gas liquid
boe / d Barrel of oil equivalent per day

Description of future prospects

This news release contains forward-looking statements regarding the following: Possibility to significantly reduce operating costs for acquired assets. Petrus expectations for unreserved drilling sites (and their quality) and rate of decline. The completion of the acquisition and its timing. These forward-looking statements are provided on the date of this news release, or the effective date of the documents referenced in this news release (if applicable), and are forecasts, expectations, and expectations regarding future events based on our beliefs. Or it reflects a belief. The time the statement was made, and the various assumptions made by it and the information currently available. In making the forward-looking statements contained in this news release, we have applied some important assumptions. This includes, but is not limited to, the following assumptions: All conditions prior to the completion of the acquisition must be met in a timely manner. Assumptions regarding commodity prices including the above. Impact of regional and / or global events on energy demand and commodity prices, such as the ongoing COVID-19 pandemic, inflation and the Russian-Ukraine War. Our business and production shall not be interrupted by the circumstances resulting from the above events and the future response of the government and the general public. Future capital spending and decommissioning spending levels. Future operating and general administrative costs. Future crude oil, natural gas liquid, natural gas prices, and the difference between light oil, medium oil, heavy oil prices and Canadian, WTI, and global oil and natural gas prices. Future hedging activity; future crude oil, natural gas liquid, and natural gas production levels. This includes that Petrus does not have to stop production due to lower commodity prices or lower commodity prices. Future exchange rates and interest rates. Future Debt Levels; Capital Program as Planned, Without Significant Impacts from Extreme Weather, Wildfires, Access to Infrastructure, Delayed Regulatory Approval and Third Party Consent, etc. Petrus’ ability to perform. Petrus’ ability to obtain equipment in a timely manner to carry out development activities and their costs. Petrus’ ability to successfully sell oil and natural gas to current and new customers. Petrus’ ability to raise funds on acceptable terms, including Petrus’ ability to maintain an existing borrowing base under the Syndicate Bank Facility, and Petrus’ ability to replace the Syndicate Bank Facility (if necessary). And Petrus’ ability to add production and reserves through our development and development activities. Management considers these assumptions reasonable based on the information available, but they may turn out to be incorrect. By its very nature, forward-looking statements include general and specific inherent risks and uncertainties, and estimates, forecasts, forecasts, and other forward-looking statements may not be achieved or they may be. There is a risk that the underlying assumptions will not be reflected. Future experience. We warn our readers not to overly rely on these forward-looking statements, as many important factors can make actual results significantly different from the expectations expressed in them. These risk factors can generally be described as risks that do not make the above assumptions, but specifically include, but are not limited to, risks related to: Additional information not mentioned in all third party and regulatory approvals applicable to the acquisition, and in our latest annual information form and other disclosure documents we have submitted to SEDAR. risk. The list of aforementioned factors that may affect future results is not exhaustive. When relying on Petrus’ forward-looking statements, investors and others should carefully consider the factors mentioned above and other uncertainties and potential events. We do not undertake, written or verbal, to update any forward-looking statement that may be made on our behalf or on our behalf, except as required by law.

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Petrus Announces Strategic Acquisition of Ferrier’s Cardium Assets, Canadian Business Journal

Source link Petrus Announces Strategic Acquisition of Ferrier’s Cardium Assets, Canadian Business Journal

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