Petrus Resources Releases 2022 Budget Increase Guidance and Operational Update, The Canadian Business Journal

Calgary, Alberta, September 19, 2022 (GLOBE NEWSWIRE) — Petrus Resources Ltd. (“Petrus” or “Company) (TSX: PRQ) is pleased to announce the acceleration and expansion of its capital program. As a result, the 2022 budget guidance has been increased and the operational outlook has been updated.

Updated 2022 Budget Guidance
Market conditions have improved significantly since Petrus’ first 2022 budget was announced last December. During his first six months of 2022, the combination of increased production and rising commodity prices has generated significantly more cash flow from operations than originally budgeted. Given the increase in capital flows to date and the forecast for the rest of the year, the board has decided to increase his 2022 capital budget from $105 million to $115 million ($50 million to $55 million). Approved to correct to increase). The cash went toward his 2022 capital program, with the remainder going toward previously announced non-cash strategic acquisitions that completed in March 2022. Approximately $80-90 million was spent on drilling, completion and tying. An increase of about 70%. The remaining $10 million will be primarily allocated for land, earthquake protection, and facilities, which were allocated minimal capital in the original 2022 budget.

The revised 2022 capital budget was prepared with a September-December 2022 average oil price forecast of USD 73/barrel WTI, AECO gas price of CAD 3.80/GJ and a foreign exchange rate of USD 0.79. I was. Under these pricing assumptions, through the execution of this capital plan, Petrus expects:

• Achieve 10,500-11,000 barrel exit production rate in 2022¹ This is projected to be a 73% to 81% increase compared to the 2021 exit rate of 6,084 baud per day.
• Generate $85-90 million in annual capital flow² In 2022, an improvement of 155% to 170% is expected, compared to annual cash flow of $33.4 million in 2021.

Given the inherent volatility of commodity prices, we recognize that it is prudent to maintain discipline and flexibility from an operational and financial perspective. Petrus will continue to monitor Canadian diesel and natural gas prices and will continue to evaluate capital expenditures.

Operational prospects
Petrus’ 2022 capital program is on track and focused primarily on drilling in the core Ferrier area. Two rigs are actively running. Drilling work has been completed on his first two pads of the program and completion work has begun on both pads. We look forward to providing updates on the results of our capital programs as the year progresses.

About Petrus
Petrus is a publicly traded Canadian oil and gas company focused on asset development, strategic acquisitions and risk-managed exploration in Alberta.

For more information, please contact:

Ken Gray
President and Chief Executive Officer
Phone: 403-930-0889
E: [email protected]

ADVICE TO READERS

Non-GAAP and other financial measures
In this press release, we use the term ‘cash flows’ (both on an actual 2021 basis and a forecast basis for 2022). These non-GAAP and other financial measures are not recognized measures under GAAP (IFRS) and do not have standardized meanings prescribed by GAAP (IFRS). Accordingly, our use of these terms may not be comparable to similarly defined measures offered by other companies. These non-GAAP and other financial measures should not be considered more meaningful as a measure of performance than GAAP measures determined in accordance with IFRS. Management uses these non-GAAP and other financial measures for the reasons set forth below.

flow of funds
Cash flow is a common non-GAAP financial measure used in the oil and gas industry that measures a company’s profitability at the corporate level. Management believes that cash flows provide information that will help readers understand the company’s profitability relative to current commodity prices. The most directly comparable financial measure disclosed in our primary financial statements was oil and gas revenues for the year ended December 31, 2021 of $81.268 million. See disclosure under “Non-GAAP and Other Financial Measures – Corporate Netback” in the Company’s Management Discussion & Analysis for the year ended December 31, 2021. This disclosure is incorporated herein by reference.

Forward-Looking Statements and FOFI
Certain information about Petrus in this press release contains forward-looking statements within the meaning of applicable securities laws and involves significant known and unknown risks and uncertainties. increase. Such statements represent Petrus’ internal projections, estimates, beliefs, plans, objectives, assumptions, intentions or statements regarding future events or performance. These statements are only predictions and actual events or results may differ materially. Although Petrus believes the expectations reflected in its forward-looking statements to be reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Many factors could cause Petrus’ actual results to differ materially from those expressed or implied in forward-looking statements made by or on behalf of Petrus. In particular, forward-looking statements contained in this press release include, but are not limited to, statements regarding the following: The scope of his revised 2022 capital budget, how the revised budget will be allocated and the intention to focus capital expenditure and operational efforts on further development of the core Ferrier his area. September-December 2022 commodity prices and his US/CAD exchange rate forecast. 2022 exit production rate projections. These forward-looking statements are subject to a number of risks and uncertainties. Fluctuations in market prices for crude oil, NGL and natural gas. currency fluctuations; inaccuracies in reserve estimates; and liabilities inherent in oil and gas operations. environmental risks; misvaluation of the value of acquisitions, exploration and development programs; competition; unavailability of qualified personnel or management; Changes in income tax laws or changes in tax laws and incentive programs related to the oil and gas industry. Risk of fire, explosion, eruption, crater, or spill. Each can cause serious damage to wells, production facilities, other property and the environment, or cause personal injury. stock market volatility; the ability to access sufficient capital from internal and external sources; Other risks and uncertainties described in our Annual Information Form. With respect to forward-looking statements contained in this press release, Petrus has made the following assumptions: availability of skilled labor; timing and amount of capital investment; future exchange rates; the impact of increased competition; general economic and financial market conditions; the availability of drilling and related equipment and services; the impact of government agency regulation; and the impact of inflation on profitability. and future operating costs. Management has included the above summary of the assumptions and risks associated with the forward-looking information provided in this press release in order to provide investors with a more complete view of Petrus’ future business. , such information may not be suitable for other purposes. Petrus’ actual results, performance or achievements may differ materially from those expressed or implied in these forward-looking statements. Therefore, there can be no assurance that any of the events anticipated by the forward-looking statements will occur or will occur. , or if any of them do, how the company benefits from it. Readers should note that the above list of factors is not exhaustive. This press release contains, but is not limited to, forward-looking financial information and financial prospects (collectively, “FOFI”) regarding the expected operating results of Petrus. Revised 2022 Capital Program, 2022 End-of-Life Rate, and 2022 Annual funds flow, subject to the same assumptions, risk factors, limitations and qualifications as above. Readers are advised not to place undue reliance on FOFI because assumptions used in the preparation of such information, while believed to be reasonable at the time of preparation, may prove to be inaccurate. Be careful not to put it down. Petrus’ actual results, performance or achievements may differ materially from those expressed or implied in his FOFI. Petrus has included his FOFI to provide the reader with a more complete view of Petrus’ future business, but such information may not be suitable for other purposes.

These forward-looking statements and FOFI are made as of the date of this press release and the Company may, whether as a result of new information, future events or results or otherwise, make forward-looking statements and statements. Disclaims any intent or obligation to update FOFI. Except as required by applicable securities laws.

BOE Presentation
The oil and natural gas industry commonly expresses production and reserves in terms of barrels of oil equivalent (“boe”). This translates the amount of natural gas into a ratio of 6,000 cubic feet to 1 barrel of oil. The intent is to bring together oil and natural gas units of measurement into one standard to simplify the measurement of results and to compare them with other industry participants. Petrus uses his 6:1 boe measurement, which is the approximate energy equivalent of his two commodities at his burner tip. Boe’s value does not represent economic value equivalence at the wellhead and can be misleading when used alone.

Production and product type information
The 2022 exit rate and the 2021 exit rate projections disclosed in this press release consist of the following product types as defined by National Instrument 51-101, and where applicable: Using a conversion ratio of , the production consists of: Oil and condensate, 28% natural gas liquids, 60% conventional natural gas.

---

¹ Bore-based production volume disclosure consists of component product types and their respective quantities. For more information, see the BOE Presentation and Production and Product Type Information.

² Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures.”

CBJ Newsmaker