Petrus Resources Ltd.

Good day and thank you for standing by. Welcome to the Petrus Resources first quarter 2024 results call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. I will now hand the conference over to your speaker today. Ken Gray, you may begin.

Thanks for joining Petrus Resources' conference call to discuss our 2024 Q1 results, provide an update on current activities, and answer any questions you may have. My name is Ken Gray, and I am the CEO of Petrus. I am joined here by our executive team of Matthew Wong, our CFO, Matt Skandra, our COO, and Lindsay Hatcher, our VP Commercial and Corporate Development. Q1 was a strong quarter for the company. We held cash flow flat quarter over quarter at just over $16 million, and production was up 3%, almost entirely due to increased oil production. This was our first increase in production from the previous quarter since Q1 2023, and as the result of the new wells drilled in our North Farrier area that were completed late in 2023, and had a full quarter of runtime in Q1 2024. Our cash costs were up from the prior quarter, but this was due to one-time adjustments that lowered OPEX and G&A in Q4. In the absence of those adjustments, costs were actually relatively flat. Debt was held constant at our target of one times cash flow. We spent $12.3 million in capital in the quarter, 90% of which was directed to drilling and completion activities. We drilled 10 gross 5.3 net wells in the quarter. Of these, seven gross or 2.3 net wells were completed and on production by the end of the quarter. Completion operations on the three gross, three net operated wells are tentatively scheduled for June. It should be noted that none of the production in Q1 is associated with these Q1 capital investments. We expect to see production ads from the 2.3 net non-operated wells in Q2 and we won't see production from our three operated wells until Q3. In January, we instituted our regular dividend of one cent per month. Through these monthly dividends, we paid out $3.7 million to shareholders in the quarter. We also repurchased 345,600 shares as part of our NCID program. Currently, production sits at just over 9,800 DOE a day. We plan to return to the 2024 capital program following spring breakup. As mentioned, we have tentatively scheduled the completion for the three operated wells drilled last quarter for June and are planning to resume drilling in July. Oil and NGL pricing is relatively strong right now, but summer gas prices look quite weak. However, winter gas, can currently be hedged at $3 a gigajoule. So gas pricing is expected to markedly improve later this year and into 2025. As always, we will remain flexible with our capital program to maximize returns in this volatile pricing environment. With that, I'll open the floor to questions. Thanks for calling in and for your continued interest and support of Petrus.

Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star 1-1 on your telephone. If your question has been answered or you wish to move yourself from the queue, please press star 1-1 again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Yousef Shaftar with CERN. Your line is open.