Petrus Resource – Update On Growth Strategy With New Debt Facility And New Wells Coming Online
We are joined by Ken Gray, President and CEO, and Matt Skanderup COO of Petrus Resources (TSX: PRQ) (OTC: PTRUF), for an update on the new debt facility and the renewed focus on growing production and cash flows. With 9 oil and gas wells drilled and coming online through the end of the year, at both the flagship Ferrier liquids-rich Cardium gas play and Ferrier North in Alberta, there should be a meaningful increase in production by Q4. The company also participated in a few partner wells this year, as well as extending the drilling at some of their own wells from 1 mile to 2 miles. 3 of the new wells coming online at Ferrier are these “2-milers,” and Matt explains the rationale was because of the efficiencies in less capital needed, less of a surface footprint, and doubling the access to the reservoir. This will take production from 6,000 BOE per day currently, up to nearly double that at 10,500-11,000 BOE per day by year end and moving into Q1 of next year.
Ken outlines why the oil and gas fields at Ferrier are on par with other popular area plays, but just lessor known, and why the company just acquired more lands in this are to keep developing strategic interests in this area. We also discussed that the first well drilled at the nearby North Ferrier area is still producing great flow rates of 830 BOE per day, and they have drilled a 2nd well here that will be adding to their production profile here, and they plan on expanding this area for quite some time.
We wrap up with getting an overview of the key news on tap and more information on the strategy behind their debt restructuring with a new bank, better terms, and more flexibility to focus on their growth strategy. While Q3 will show an increase in capital spent, and won’t have the production uptick yet, they will be releasing a big update on their year-end and 2023 work plans, and then the production ramp up will begin in Q4.
If you have any questions for Ken or Matt with regards to Petrus Resources, then please email us at either Fleck@kerport.com or Shad@kereport.com.
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