Monthly Activity Updates
2019
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Petrus set out in 2018 to prove its Cardium light oil inventory and maximize its return on capital by significantly increasing the number of fracture stimulations used in its completion operations. Petrus drilled or participated in 2 gross (0.7 net) Cardium light oil wells during the first half of 2018. Petrus strategically deferred its capital development until the second half of 2018 in order to permit debt repayment early in the year as well as to provide time to analyze well performance to evaluate the new completion techniques. The Company’s 2018 operated drilling program resumed in the second half of 2018 with 5 gross (2.9 net) Cardium light oil wells drilled and fracture stimulated with an average of 76 stages per one mile lateral length. The test production, over a 14 day period, attributed to Petrus’ 2.9 net additional wells was approximately 2,000 boe/d, which was comprised of 50% light oil (60% total liquids). The light oil test rates of approximately 1,000 boe/d nearly doubles Petrus’ light oil production reported for the third quarter of 2018 of 1,243 boe/d. Petrus is very pleased with the results of the 2018 drilling program and looks forward to continued development of its Cardium light oil in Ferrier in a consistent, disciplined manner. In 2019, the Company plans to drill consistently through each quarter within funds flow and repay $1 to 2 million of debt each quarter.
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Capital spending is estimated at $2.4 million for November 2019, related to ongoing drilling operations of Cardium light oil wells in Ferrier. The new production was brought on stream in October.
Estimated November 2019 average production is 7,829 boe/d, comprised of 19% light oil and 31% total liquids.
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Capital spending is estimated at $1.7 million for October 2019, related to ongoing drilling operations of Cardium light oil wells in Ferrier. The new production was brought on stream in October.
Estimated October 2019 average production is 8,311 boe/d, comprised of 23% light oil and 35% total liquids.
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Capital spending is estimated at $0.7 million for September 2019, related to ongoing drilling operations of Cardium light oil wells in Ferrier. The new production will be brought on stream later in the fourth quarter.
Estimated September 2019 average production is 7,245 boe/d, comprised of 15% light oil and 29% total liquids.
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Petrus is unique in the junior E&P company space as few gas-weighted companies are able to repay debt and grow production & cash flow all within cash from operations. Over the past four years, Petrus has significantly improved its business in order to increase its sustainability as well as mitigate commodity price risk. At the end of the second quarter of 2019, the Company had repaid $96 million or 42% of its total debt since December 31, 2015, and expects that its third quarter 2019 debt repayment will be an additional $1 to $2 million. Operating costs have been reduced by 51% since 2015 and Petrus’ total cash costs of $9.18 per boe are consistently one of the lowest amongst its peers.
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Capital spending is estimated at $1.1 million for July 2019. The majority of the capital was invested in the drilling of one (0.5 net) Cardium light oil well in Ferrier.
Estimated July 2019 average production is 8,055 boe/d, comprised of 16% light oil and 35% total liquids.
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Petrus is unique in the junior E&P company space, as few gas-weighted companies are able to repay debt and grow production & cash flow all within cash from operations. Over the past four years, Petrus has dramatically improved its business in order to increase its sustainability as well as mitigate commodity price risk. At the end of the first quarter of 2019, the Company has repaid $92.8 million or 41% of its total debt since December 31, 2015, and expects that its second quarter 2019 debt repayment will be an additional $4 to $5 million. Operating costs have been reduced by 47% since 2015 and Petrus’ total cash costs of $11.70 per boe are consistently one of the lowest amongst its peers.
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Petrus is unique in the junior E&P company space, as few gas-weighted companies are able to repay debt and grow production & cash flow all within cash from operations. Over the past four years, Petrus has dramatically improved its business in order to increase its sustainability as well as mitigate commodity price risk. At the end of the first quarter of 2019, the Company has repaid $92.8 million or 41% of its total debt since December 31, 2015, and expects that its second quarter 2019 debt repayment will be an additional $4 to $5 million. Operating costs have been reduced by 47% since 2015 and Petrus’ total cash costs of $11.70 per boe are consistently one of the lowest amongst its peers.
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Capital spending is estimated at $1.1 million for April 2019. During the month, Petrus invested in completion and tie-in operations related to wells drilled earlier in 2019.
Estimated April 2019 average production is 8,873 boe/d, comprised of 21% light oil and 39% total liquids.
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Capital spending is estimated at $3.8 million for March 2019. Petrus’ capital expenditures are focused on Cardium light oil development in the Ferrier area. Petrus invested in the completion operations related to two operated and one non-operated wells drilled earlier in 2019. The three (1.6 net) wells were brought on production at the end of March.
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Capital spending is estimated at $4.4 million for February 2019. During the month, Petrus’ capital expenditures were focused on Cardium light oil development in the Ferrier area. Petrus drilled two (1.2 net) wells in February and the related completion and tie-in operations are taking place in March. Petrus also participated in the drilling and completion operations related to two (0.8 net) non-operated wells. The production attributed to these wells, as well as two (0.3 net) additional non-operated wells is expected to be brought on stream later in the first quarter.
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Petrus set out in 2018 to prove its Cardium light oil inventory and maximize its return on capital by significantly increasing the number of fracture stimulations used in its completion operations. Petrus drilled or participated in 2 gross (0.7 net) Cardium light oil wells during the first half of 2018. Petrus strategically deferred its capital development until the second half of 2018 in order to permit debt repayment early in the year as well as to provide time to analyze well performance to evaluate the new completion techniques. The Company’s 2018 operated drilling program resumed in the second half of 2018 with 5 gross (2.9 net) Cardium light oil wells drilled and fracture stimulated with an average of 76 stages per one mile lateral length. The test production, over a 14 day period, attributed to Petrus’ 2.9 net additional wells was approximately 2,000 boe/d, which was comprised of 50% light oil (60% total liquids). The light oil test rates of approximately 1,000 boe/d nearly doubles Petrus’ light oil production reported for the third quarter of 2018 of 1,243 boe/d. Petrus is very pleased with the results of the 2018 drilling program and looks forward to continued development of its Cardium light oil in Ferrier in a consistent, disciplined manner. In 2019, the Company plans to drill consistently through each quarter within funds flow and repay $1 to 2 million of debt each quarter.