PETRUS RESOURCES ANNOUNCES SECOND QUARTER CAPITAL BUDGET, EXECUTIVE APPOINTMENT AND ANNUAL GENERAL MEETING UPDATE
April 09 2020 - 6:00AM
Petrus Resources Ltd. ("Petrus" or the "Company") (TSX: PRQ)
announces its second quarter 2020 capital budget. With the
current volatility in the price of Canadian light oil and natural
gas, the Company believes that it is prudent to maintain a
disciplined capital budget that is flexible from an operational and
financial perspective. Petrus’ Board of Directors has approved a
second quarter 2020 capital budget of $0.5 million, which provides
for non-discretionary maintenance capital only. No drilling
or completion activities are expected to take place in the second
quarter. Petrus' first quarter capital spending has been
completed with the drilling and completion of 2 (2.0 net) Cardium
oil wells. The wells are on production at restricted
production rates given the current low commodity price
environment.
Petrus is committed to maintaining its financial
flexibility and the Company intends to determine subsequent quarter
capital spending as the year progresses. For the second half
of 2020 we believe we have significant optionality in the number,
the commodity composition and the location of drilling
opportunities. Petrus is focused on designing its 2020
capital plan to invest capital systematically each quarter within
funds flow, permitting excess funds each quarter to reduce
debt.
EXECUTIVE APPOINTMENTPetrus is
pleased to announce the appointment of Mr. Chris Graham as the
Company’s Vice President, Finance and Chief Financial
Officer. Mr. Graham has over 20 years’ experience in the
energy investment industry and has significant experience with debt
and equity financings, mergers, acquisitions and valuations in the
Canadian energy sector. Mr. Graham is a Chartered Professional
Accountant and Chartered Financial Analyst and holds a Bachelor of
Commerce degree from the University of Calgary.
ANNUAL GENERAL MEETINGThe
Corporation currently intends to hold its Annual General Meeting
("Meeting") on Tuesday, May 5, 2020 at 2:00 p.m. (Calgary time).
Due to the rapidly evolving COVID-19 pandemic and restrictions on
mass gatherings implemented by the Government of Alberta in
response thereto, and out of concern for the wellbeing of all
participants, access to the Meeting may be limited. The Company
does not plan to have a formal presentation at the conclusion of
the Meeting. We encourage all shareholders and proxyholders
not to attend the meeting in person, particularly if they are
experiencing any of the described COVID-19 symptoms. Shareholders
and guests can listen to the Meeting via teleconference at
1-888-433-2192 (participant code 6841494) however shareholders and
proxyholders will not be able to vote their shares via
teleconference. We encourage all shareholders to submit their
proxies in advance of the Meeting.
ABOUT PETRUSPetrus 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:Neil Korchinski, P.Eng.President and Chief
Executive OfficerT: 403-930-0889E:
nkorchinski@petrusresources.com
READER ADVISORIES
This press release contains forward-looking
statements. More particularly, this press release contains
statements concerning plans related to: (i) drilling and completion
activities expected to take place in the second quarter of 2020;
(ii) Petrus' financial flexibility and the timing of the
determination of subsequent capital spending; (iii) the optionality
in the number, the commodity composition and the location of
drilling opportunities available to Petrus; (iv) the focus and
design of Petrus' capital plan and the uses of excess funds; and
(v) the ability of the Company to hold the Meeting, access to the
Meeting and the date and timing thereof. The forward-looking
statements contained in this press release are based on certain key
expectations and assumptions made by Petrus, including: the
availability of adequate and secure sources of funding for Petrus'
proposed capital expenditure program, commodity prices and the
impact of the COVID-19 pandemic. 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, 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; the volatility of commodity prices; exchange
rate fluctuations; and uncertainties resulting from potential
delays or changes in plans with respect to exploration or
development projects or capital expenditures) and implications of
the COVID-19 pandemic. Readers are cautioned that the
foregoing list is not exhaustive of all possible risks and
uncertainties.
The forward-looking statements contained in this
press release 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.
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