RE:North Ferrier first operated well resultsHappy Friday news!!
Petrus Resources Announces Results of First Operated North Ferrier Well and Provides Operational Update
2022-01-28 07:00 ET - News Release
Calgary, ALBERTA, Jan. 28, 2022 (GLOBE NEWSWIRE) -- Petrus Resources Ltd. ("Petrus" or the "Company") (TSX: PRQ) is pleased to provide information on the results of the Company’s recently drilled operated well in North Ferrier as well as an operational update.
NORTH FERRIER
Petrus began execution of its Q4 2021 drilling program in November, which included drilling the Company’s first operated well in North Ferrier. The well was drilled, completed and tested in early December before being tied-in and brought on production near the end of the year. The average initial production rate from this well over the first 30 days was 830 boe per day (34% total liquids, 66% gas). This is a restricted rate due to infrastructure limitations and the flow is currently fixed at that rate. Given the estimated capability of the well and that it is currently being produced at a restricted rate, Petrus expects the production profile of this well to be flatter than other wells drilled in this area; meaning, it will have a shallower decline and will hold in at a higher production rate for longer than if it was being produced at its full capability. The well flows to a non-operated plant in which Petrus holds a working interest. We anticipate some of the constraints will be alleviated in the coming months, improving access to processing infrastructure and allowing for restrictions to be reduced or removed.
The results of this well are an exciting development for Petrus, as it is the first 100% working interest well the Company has drilled in this area. The Company has a strong land position in North Ferrier and sees the area as having significant potential for long-term growth. Petrus will continue to evaluate the economics and operational conditions of this asset relative to other opportunities and prioritize capital investments accordingly.
OPERATIONAL UPDATE
In December, two (2 net) wells were drilled in Petrus’ core area of Ferrier. The wells were completed and tested in late December and brought on production the first week of January. Both wells are currently on production and performing in line with expectations based on typical well performance in the area. Ferrier will continue to be the core area of focus for Petrus as the Company moves through 2022 and executes a $50-55 million dollar capital budget. Ownership and control of critical infrastructure makes the incremental cost of adding production in the area very low, which supports superior economic returns.
The 2022 budget was contemplated using a price forecast of WTI at US$69.00/bbl, AECO gas price at $3.20/GJ and a foreign exchange rate of US$0.79. Under these pricing assumptions, through the successful execution of the 2022 capital budget, Petrus expects to:
- Drill 14 gross wells in Ferrier, with the majority of the program taking place in the last half of the year
- Achieve a corporate 2022 exit production rate of 8,500 to 9,000 boe per day (62% conventional natural gas, 25% light crude oil and 14% natural gas liquids), a projected increase of 40-50% compared to 2021 average annual production
- Generate $55-$60 million in annual funds flow, an anticipated 70-90% improvement compared to estimated 2021 results
- Continue to reduce debt and further strengthen the Company’s balance sheet
Given the inherent volatility of commodity prices, the Company recognizes it is prudent to remain disciplined and flexible. Petrus monitors the price of Canadian light oil and natural gas on an ongoing basis and will evaluate capital investments accordingly.
ABOUT PETRUS
Petrus is a public Canadian oil and gas company focused on property exploitation, strategic acquisitions and risk-managed exploration in Alberta.
For further information, please contact:
Ken Gray
President and Chief Executive Officer
T: 403-930-0889
E: kgray@petrusresources.com