CALGARY, ALBERTA–(Marketwired – Oct. 21, 2016) – Petrus Resources Ltd. (“Petrus” or the “Company”) (TSX:PRQ) is pleased to provide the following operations update:
- The Company has recently drilled three 100% WI wells in its Ferrier core area targeting liquids rich gas in the Cardium formation. Average drill and case costs were 18% lower than budget.
- The first well was successfully frac’d and tested at a restricted rate of approximately 800 Boe/d over the final 93 hours of its flowback test period. The well commenced production on October 14th at an average rate of approximately 450 Boe/d over its first five production days. The well is purposely restricted as part of our normal operations for a new well. All-in capital costs for this well were approximately $2.4MM.
- As part of our cost savings plans, the second and third wells were drilled from the same surface pad and frac preparations will begin after the drilling rig has been moved off the location later this week.
- The Company has also completed facility and pipeline optimization projects. A new compressor has been added to the Ferrier gas plant, which is expected to improve throughput capability and operational flexibility. Current plant throughput is approximately 21 mmcf/d of a nominal 25 mmcf/d capacity. A new main gathering pipeline has allowed the Company to tie-in the first new well mentioned above plus an additional 100% WI well that was producing through a third party facility at a reduced rate. The new gathering line will accommodate future growth plans.
- On October 31, the Company’s firm processing agreement through Strachan will expire resulting in approximately $170,000 per month savings in unutilized processing fees. These cost savings will contribute to lower operating costs going forward.
- With the above changes in Ferrier together with the return of various shut-in volumes in the Company’s Foothills area, overall Corporate production is currently approximately 8,100 Boe/d, essentially back to the level Petrus had before it sold approximately 1,000 Boe/d when it disposed of its Peace River assets for $30MM in July 2016.
- Petrus anticipates drilling approximately two net additional wells prior to year-end and remains on track with its second half capital program of $17.5 MM – expected to be funded with cash flow.
- With the remaining completions and new drills on-stream, year-end production is expected to be approximately 9,000 Boe/d.
- The Company plans to release its third quarter financial results on or before November 9, 2016.
Petrus is a public Canadian oil and gas company focused on property exploitation and strategic acquisitions in Alberta.