Petrus Resources Ltd.

Good day, and thank you for standing by. Welcome to the Petrus Resources second quarter 2024 results conference call. At this time, all participants are in 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 11 on your telephone. You'll then hear an automated message advising your hand is raised. To answer your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Ken. Please go ahead.

Welcome to Petrus Resources 2024 Q2 Earnings Call. My name is Ken Gray, and I am the CEO of Petrus. I'm joined here by our executive team of Matthew Wong, our CFO, Matt Scandrup, COO, and Lindsay Hatcher, VP Commercial and Corporate Development. The most notable thing to me in our Q2 results is the fact that we have held production relatively flat for the past 12 months, despite reducing our capital program in response to low gas prices. Production in Q2 averaged 9,471 DOE per day. It included production added from 2.3 net wells drilled in Q1 and brought on right at the end of that quarter. We did shut in about 200 BOE per day of production for economic reasons and had some turnarounds in maintenance in June, which negatively impacted production. Also of note in Q2, cash costs were down 17% from Q1. Some of this is due to increased gathering and processing fees from third parties generated by the north area pipeline we completed in late 2023. Cash flow came in at $10.6 million for the quarter. We distributed $3.7 million of it in dividends to our shareholders and spent $6.9 million in capital, primarily on completing the three operated wells we drilled back in January. Those wells were brought on production in late July, and current production is a little north of 10,000 BOE per day. We continue to prudently manage our cash flow to ensure we can comfortably pay out our dividend to our shareholders. Our current plan now is to resume drilling in September with a limited program and to maintain our debt at current levels. With that, I'll open the floor to questions.

Thank you. As a reminder, if you'd like to ask a question, please press star 11 on your telephone. We ask as well that you wait for your name and company to be announced before you proceed with your question. One moment. Our first question today comes from Joseph. Scatter of sir, your line is open.