PRQ.TO

Q1 2024 Corporate Update

May 8, 2024

PETRUS: WHO ARE WE?

Alberta Deep Basin producer creating sustainable shareholder value through risk managed development of quality assets

  • Canadian oil and gas producer, focused on the Deep Basin, headquartered in Calgary, AB
  • Acquire oil and gas mineral rights and develop those lands through drilling wells and producing the natural gas, natural gas liquids and oil
    • Concentrated Deep Basin production and land holdings in Ferrier, Alberta
    • Predictable results, low geological risk, liquids rich, long producing life
    • High percentage ownership in land base, 100% ownership of processing facility and pipeline infrastructure
    • High level of control, cost efficient
  • Investing in projects with high rates of return that meet stringent internal investment thresholds
  • Long life assets create cashflow streams generating sustainable long-term value for shareholders
    • Announced declaration of first dividend payment in October 2023, special dividend of $0.03/share
    • Declared a regular monthly dividend of $0.01/share started in January 2024
  • A strategy of flexibility ensures investment decisions adjust to market conditions to minimize risk and maximize returns
  • High insider ownership ensures leadership is aligned with shareholders

2

PETRUS: SNAPSHOT

2023 Highlights, Market Summary & Capital Structure

Production & Funds Flow

Q1 2024 Average Production

9,783 boe/d

KAKWA

Commodity Weighting

68% Gas, 32% Oil & Liquids

Base Decline

30%

Annualized Q1 2024 Funds Flow

$65 Million ($0.52/share)

FOOTHILLS

THORSBY

Market Summary & Capital Structure

Shares Outstanding & Market Cap₁

124.3 mm (75% insiders), $163 mm

Revolving Credit Facility

$60 mm (Approx. $33.8 mm drawn)₂

NORTH

FERRIER

Second Lien (Matures June 2025)₃

$25 mm (Approx. $25 mm drawn)₂

FERRIER

Total Net Debt₂

Approx. $63.1 mm

  1. Based on basic shares outstanding at March 31, 2024 and share price at market closing on March 28, 2024.

2)

Amounts drawn on credit facilities and total net debt at March 31, 2024. Net debt includes working capital.

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3)

Second lien debt holder is major shareholder who was integral to the restructuring of Petrus' debt, so interests are aligned with all shareholders.

STRATEGY: UNLOCKING PROVEN VALUE

Uniquely Positioned to Generate Meaningful Long-Term Value for Shareholders

Committed to Delivering Sustainable Long-Term Value

"Over the past few years, we've strategically positioned the business to create sustainable long-term value. We will continue to invest in our assets, prioritizing free-cash flow and risk-managed growth. Through this strategy we expect to continue delivering meaningful returns to our shareholders."

- Ken Gray, President & CEO

4

DEEP BASIN ASSETS: FERRIER AREA, ALBERTA

Core Ferrier & North Ferrier Assets, High Ownership, Strategic Infrastructure

Economics & Drilling Locations

  • Core Ferrier & North Ferrier
  • Cardium play, condensate & liquids rich natural gas
  • 8,331 boe/d1 combined total production
  • High working interest, ownership of critical infrastructure
  • North Ferrier is now connected to Ferrier 2-25 gas processing plant via newly constructed 20 km pipeline
  • Areas share the same low cost structure

CNRL 7-18 Gas Plant (Petrus 18.52%)

Petrus North Ferrier Pipeline

Petrus 2-25 Gas Plant

NORTH

FERRIER

CORE

FERRIER

1)

Q1 2024 average production.

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DEEP BASIN ASSETS: CORE FERRIER, ALBERTA

Repeatable, Predictable, Low-Risk,High-Return Resource Play

Economics & Drilling Locations

  • 6,854 boe/d₁ (71% gas, 29% oil/NGLs)
  • Manufacturing style resource play
  • Approximately 220+ drilling locations₂

-includes Cardium & Other (Glauc, Notikewin, Ellerslie)

  • Flexibility to target locations based on commodity pricing
  • Low operating cost
  • Processing & gathering infrastructure owned 100%

-60 mmcf/d capacity (50% utilized), 70 bbls/mmcf total liquids

Ferrier Economics₃: Pricing Sensitivities

Scenario

Pricing

Capital4

Payout5

IRR6

Case

($ CAD)

($MM)

(months)

(%)

Tier 1 Locations

NORTH FERRIER

CORE FERRIER

Petrus North Ferrier Pipeline

Petrus 2-25 Gas Plant

Low Case

Oil $77.87/bbl & Gas $2.00/mcf

$3.2

9.5

200+

Base Case

Oil $97.33/bbl & Gas $2.50/mcf

$4.0

9.0

200+

High Case

Oil $116.80/bbl & Gas $3.00/mcf

$4.8

8.5

200+

1)

Q1 2024 average production.

2)

Locations are based on a combination of proved and probable locations derived from the reserves report prepared by Insite Petroleum Consultants Ltd. effective December 31, 2023 and unbooked locations which are internal estimates based on Petrus' prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal

review. Unbooked locations do not have attributed reserves.

3)

Economics reflect the expected return on a well on production January 1, 2024. The base case uses the pricing listed for 2024 and forward years use Insite Petroleum Consultants Ltd. price forecast. The low case uses pricing that is 20% lower than the base case and the high case uses pricing that is 20% higher than the base case.

4)

Capital is based on Petrus' forecasted base capital investment of $4.0 MM per well for drill, complete, equipping and tie-in. The low case uses capital costs that are 20% lower than the base case and the high case uses capital costs that are 20% higher than the base case.

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5)

All payout estimates based on cost, production and pricing assumptions listed.

  1. IRR estimates based on cost and pricing assumptions listed.

DEEP BASIN ASSETS: NORTH FERRIER

Addition of North Ferrier Pipeline, Area Positioned for Growth

  • 1,477 boe/d₁ (57% gas, 43% oil/NGLs)
  • Very active play
  • Strong land position (31 Sections)
  • Approximately 75+ potential locations₂
  • Excellent economics
  • Well positioned for significant growth
  • Development drilling commenced July 2023
  • Strategic pipeline connecting North Ferrier assets to
    Petrus' Ferrier gas plant, came on stream in Q4
  • North Ferrier Pipeline provides operated North Ferrier assets with the same low cost structure as core Ferrier assets

NORTH FERRIER

CNRL 7-18 Gas Plant

(Petrus 18.52%)

Petrus North Ferrier Pipeline

CORE FERRIER

1)

Q1 2024 average production.

2)

Locations are based on a combination of proved and probable locations derived from the reserves report prepared by Insite Petroleum Consultants effective December 31, 2023 and unbooked locations which are internal estimates based on Petrus' prospective acreage and an assumption as to the number of wells that can be

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drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves

NON-CORE ASSETS: THORSBY, ALBERTA

Stable Funds Flow Generation

  • 1,152 boe/d₁ (66% Gas, 34% oil/NGLs)
  • Low decline Glauc production
  • Strong, steady cash flow with little ongoing capital investment
  • Ownership and control of critical infrastructure
  • Concentrated, operated, high working interest
  • Third party processing revenue

Thorsby 05- 04

Oil Battery & Gas

Plant

Thorsby 16-36 Oil

Battery

Thorsby 7-14

Gas Plant

Thorsby Glauc

Unit No. 1

Thorsby 15-22

Gas Plant

Thorsby 02-13 Oil

Battery

1)

Q1 2024 production.

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NON-CORE ASSETS: FOOTHILLS & KAKWA

Cash Flow Generating Assets, Require Limited Resources

FOOTHILLS

  • Low decline gas and cardium oil
  • 300 boe/d₁ (71% Gas, 29% NGL )
  • Minimal capital investment
  • Cash flow generating asset

KAKWA

  • Dunvegan oil production
  • Drilled first well in 2021
  • Large land base (20.75 sections)
  • Potential for long-term growth

1)

Q1 2024 production.

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2024 CAPITAL PROGRAM

2024 Strategy of Discipline, Prioritizing Sustainable Shareholder Returns and Healthy Balance Sheet

2024 Capital Budget

2024 Guidance

2024 capital budget of $40 MM-$50 MM1,

Achieve annual average production 9,000-10,000 boe/d

Cash flow funded

Generate $55 MM-$65 MM in annual funds flow

Maintain production through continued investment in drilling

Free funds flow of $15 MM-$20 MM, pay monthly dividend of $0.01/sh2

Generate free funds flow that will be used to distribute dividends2

Maintain net debt in the range of $55 MM-$60 MM

1)

Approved 2024 capital budget of $40-$50 million.

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2)

Dividends to be approved by the Board of Directors and declared monthly

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Disclaimer

Petrus Resources Inc. published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 22:44:06 UTC.