Petrus Resources Announces 2015 Operating, Financial and Reserves Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/23/16 -- Petrus Resources Ltd. ("Petrus" or the "Company") (TSX: PRQ) is pleased to announce financial and operating results for the three month period and year ended December 31, 2015, and provide 2015 year-end reserves information as evaluated by Sproule Associates Limited ("Sproule"). The associated Management''s Discussion and Analysis ("MD&A") and audited financial statements as at and for the year ended December 31, 2015 can be found at .
HIGHLIGHTS
SELECTED FINANCIAL INFORMATION
OPERATIONS UPDATE
The Petrus Board of Directors approved a base capital budget of $11.0 million for the first half of 2016. The capital budget includes the drilling of 4 gross (3.6 net) wells and some tie-in and pipeline costs to optimize the Company''s new gas plant in the Ferrier area to reduce future third-party processing fees. The capital budget is expected to be funded through a portion of cash flow.
The Company''s production was significantly impacted during the year as a result of third party pipeline restrictions which limited production. To date in 2016 Petrus has been largely unaffected by these curtailments. Average fourth quarter production from the Company''s four operating areas was as follows:
Ferrier
Petrus established its initial position in the Ferrier area through a corporate acquisition in the third quarter of 2014. Since then Petrus has nearly doubled its undeveloped acreage in the area and has increased total proved plus probable reserves 70% since 2014 year end. Petrus constructed a 25 mmcf per day gas plant in 2015 which was designed to control costs and maximize value from the Company''s high liquids content gas drilling opportunities in the area. The plant was completed during the fourth quarter and is operating as planned with ample excess capacity to enable growth. Management believes Ferrier is a low-risk, resource-style play with a drilling inventory that includes economic locations at current strip pricing, and is the focus of the Company''s 2016 development activity.
Central Alberta
Petrus established its position in the Thorsby/Pembina area of Alberta through a corporate acquisition in the fourth quarter of 2014. The Company''s assets in the area are predominantly oil with associated natural gas. Petrus owns and operates the majority of its working interest and facilities in Thorsby/Pembina. A portion of the Central Alberta assets are on waterflood and Petrus expects to optimize the other assets by implementing waterflood expansions to increase the economic recovery of the property.
Foothills
Petrus has low cost, low decline assets in the Foothills along with a significant amount of undeveloped land with an expansive drilling inventory at higher commodity prices. The Company owns extensive processing infrastructure throughout the Foothills and will continued to evaluate development opportunities in the area.
Peace River
Petrus owns legacy oil production in the Peace River area with production facilities as well as development land on which Petrus has developed a Montney oil play. Petrus has invested in production and water disposal facilities in its Peace River area and two oil batteries with water disposal capabilities now fully operational at Tangent and Berwyn contributing to significantly reduced operating costs and increased runtime. Petrus has initiated a pilot waterflood program at Berwyn and expects to expand the waterflood area over the next few years.
ANNUAL GENERAL MEETING
The Company''s Annual General Meeting will be held at the Riverview Room, International Hotel, 35th floor, 220-4th Ave SW Calgary, Alberta, on Thursday May 12, 2016 at 9:00 a.m. (Calgary time). The Information Circular, Annual Information Form and Annual Report for 2015 will be available on SEDAR () as well as the Company''s website ().
ABOUT PETRUS
Petrus is a public Canadian oil and gas company focused on property exploitation, strategic acquisitions and risk-managed exploration in Alberta.
READER ADVISORIES
This press release contains forward-looking statements. More particularly, this press release contains statements concerning Petrus'' commodity weighting, plans related to the Company''s 2016 capital budget, including planned drilling and other operations, commodity focus, commodity pricing, drilling locations, production rates, expected source of funding of the 2016 capital budget, the belief of economic projects and drilling opportunities at current strip pricing, the expected ability of Petrus to execute on its exploration and development program and Petrus'' anticipated production (both in terms of quantity and raw attributes) cash flow, operating netbacks, planned operations and the timing thereof, evaluation of completed operations, the availability of opportunities and other similar matters. 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; and (iv) with respect to anticipated production, the ability to drill and operate wells on an economic basis, the performance of new and existing wells and accounting risks typically associated with oil and gas exploration and production; (v) oil and gas prices; (vi) currency exchange rates; (vii) royalty rates; (viii) operating costs; (ix) transportation costs; and (x) the availability of opportunities to deploy capital effectively.
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.
The forward-looking statements contained in this document are made as of the date hereof and Petrus undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one boe (6 mcf/bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this report are derived from converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. The forward-looking statements contained in this document are made as of the date hereof and Petrus undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Please refer to the disclosure with respect to non-GAAP measures in the Company''s MD&A.
"Funds from operations" should not be considered an alternative to, or more meaningful than, cash flow from operating activities as determined in accordance with International Financial Reporting Standards as an indicator of Petrus'' performance. "Funds from operations" represents cash flow from operating activities prior to changes in non-cash working capital, transaction costs and decommissioning provision expenditures incurred. Petrus also presents funds from operations per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of earnings per share.
Contacts:
Petrus Resources Ltd.
Kevin Adair, P.Eng.
President and CEO
403-930-0888
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Datum: 23.03.2016 - 06:31 Uhr
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