Petrus Resources Announces First Quarter 2016 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 05/12/16 -- Petrus Resources Ltd. ("Petrus" or the "Company") (TSX: PRQ) is pleased to announce financial and operating results for the three month period ended March 31, 2016. The associated Management's Discussion and Analysis ("MD&A") and quarterly financial statements as at and for the period ended March 31, 2016 are accessible at . During the first quarter Petrus focused its business strategy on efficiently deploying a modest level of capital, reducing operating costs, mitigating exposure to commodity prices and reducing debt.
SELECTED FINANCIAL INFORMATION
OPERATIONS UPDATE
The Petrus Board of Directors has approved a capital budget of $12.2 million for the first half of 2016. The capital budget includes the drilling of four gross (2.7 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 will be funded through a portion of cash flow.
The Company's production was significantly impacted in 2015 as a result of third party pipeline restrictions which limited production. To date in 2016, Petrus has been largely unaffected by these curtailments. Average first quarter production from the Company's four operating areas was as follows:
During the first quarter Petrus invested $9.3 million of its $12.2 million first half budget, which was funded by funds flow and working capital. The Company's capital development plan for the first half of 2016 is focused on the Ferrier area, where Petrus invested $6.4 million on drilling and completion costs to drill three wells (2.3 net) during the first quarter. The drilling and completion operations were planned for the first quarter in advance of spring break up. The new wells were on production in early April and well performance has been consistent with expectation. Capital costs were significantly lower than the prior year due to efficiencies achieved as well as cost reductions due to lower demand for services. Total capital costs for the two operated Ferrier drilling projects were approximately 15% lower than comparable projects completed in 2015. In addition, Petrus reduced total cycle time by drilling on a multi-well pad which contributed to cost savings and efficiency.
Petrus invested $2.4 million on tie-in, facility and well equipment costs to further increase operational control and reduce operating expenses.
Petrus will continue to monitor commodity prices and can opportunistically increase capital development as industry conditions warrant. Petrus currently has a diverse drilling inventory, including more than 100 economic projects at current strip pricing.
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, 2015 Annual Report and the First Quarter 2016 Report are all available on the SEDAR filing system () as well as on 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: 12.05.2016 - 13:00 Uhr
Sprache: Deutsch
News-ID 470685
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CALGARY, ALBERTA
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Oil & Gas
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