Petrus Resources Ltd.

Ladies and gentlemen, thank you for standing by and welcome to Petrus Resources First Core 2025 results call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. please be advised that today's conference is being recorded. I would like now to turn the conference over to Ken Gray, Chief Executive Officer. Please go ahead.

Welcome to Petrus Resources 2025 Q1 Earnings Call. My name is Ken Gray, CEO of Petrus, and I am joined here by our executive team of Matthew Wong, CFO, Matt Scandra, COO, and Lindsay Hatcher, VP Commercial and Corporate Development. Our last conference call was just a little over a month ago, so I'll keep this brief. For the quarter, we spud seven wells, 4.1 net, and have put two, 1.7 net, of those wells on production to date. Spring conditions have held us up a bit on completions, but we've managed to get the equipment on location and have started fracking operations on the three 1.7 net wells drilled that tie into our North Farrier pipeline extension. Once completed later this month, we'll bring the pipeline extension into operation and those wells will come online along with another well that has been shut in for several months due to third party pipeline constraints. Fracking is also started on the two 0.4 net non-operated wells drilled in North Farrier and those wells should be online later this month as well. We have continued drilling over break-up and are currently drilling the third well of a four-well program in our core Farrier area. We expect to complete drilling operations on this pad by the end of the month and we'll be completing and bringing those wells on shortly afterwards. So lots to look forward to over the next couple months and into the second half of the year. As a result of all this activity, our net debt is up about 10% from year end. We have intentionally deployed more of our budgeted annual capital in Q1 to take advantage of certain time-sensitive strategic opportunities. At this point, Total capital spending for the year is still expected to be within our guidance of $40 to $50 million, and we'll bring net debt and our debt-to-cash flow ratio back down over the second half of the year. With that, I'll open the floor to questions.

Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. one moment while we compile the Q&A roster. I show no questions at this time. This does conclude today's conference call. Thank you for participating. You may now disconnect.