Petrus’ Board of Directors has approved a first quarter 2021 capital budget of $9.0 million to drill three (2.1 net) Cardium wells in the Ferrier area. With the risk of 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 will continue to monitor the Canadian commodity price environment and will evaluate subsequent quarter capital spending as the year progresses. The first quarter capital budget is focused on the highest rates of return, lowest risk, condensate rich drilling opportunities in the Company’s inventory at Ferrier, Alberta. Petrus is focused on designing its 2021 capital plan to invest capital systematically within funds flow, permitting excess funds to reduce debt.
Petrus ended 2020 with $77.5 MM drawn on its revolving credit facility which had a borrowing base maximum size of $83.0 MM at December 31, 2020. Management believes the Company has adequate liquidity to execute the Petrus business plan over the coming year. Consistent with past years, Petrus plans to continue to make quarterly paydowns to the revolving credit facility in addition to a disciplined capital spending program in 2021. Recent improvements in the 2021 commodity price outlook as well as pricing protection afforded from a continued systematic hedging program should allow this to be funded within cash flow.
Petrus is a public Canadian oil and gas company focused on property exploitation, strategic acquisitions and risk-managed exploration in Alberta.