Petrus Resources Ltd.

Good day and thank you for standing by. Welcome to Infectious Resources Q2 2025 results call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again.

I would now like to hand the conference over to your speaker today, Ken Gritt.

Hello and thanks for joining Petrus Resources 2025 Q2 earnings call. My name is Ken Gray, CEO of Petrus, and I'm joined here by our executive team of Matthew Wong, CFO, Matt Scandra, COO, and Lindsay Hatcher, VP, Commercial and Corporate Development. Q2 results were quite robust as we started to see the results of our accelerated capital spending in the first half of the year. Production started to pick up as we brought on five, two net wells in our north area area in May. This was made possible by the completion of the north area pipeline extension, connecting our farrier gas plant to the furthest north of our cardium acreage. This is the area where we drilled the company's best cardium well back in 2021. but have not been able to follow it up due to lack of pipeline and processing capacity in the area. The north barrier pipeline extension has eliminated that issue. Early results from the five wells drilled are very positive, and production is still being significantly choked on those wells as we balance and optimize our infrastructure. We also drilled and completed four 2.0 net wells in our core barrier area, which came on production in early July. These were two-mile wells that employed a design that has evolved from our continuing efforts to lower costs while maintaining or improving well productivity. And the average cost of the wells came in 30% below what we had been achieving over the last few years. Production from the wells is on tight curves and will contribute further to production growth in Q3. We completed drilling two 1.3 net additional Belly River wells in July. Completions have commenced on those wells, and they should be on production later this month. This makes three Belly River oil wells that we have drilled this year, and we have several more locations identified for future drilling. As planned, we're pausing our drilling program for now, after accelerating certain capital projects into the first half of the year for strategic reasons. Climbed capital spending for the remainder of the year is expected to be within the guidance we provided earlier this year of $40 to $50 million for the year. We are also confident we will meet our other areas of guidance with production averaging between 9,000 and 10,000 DOEs per day. funds flowing the range of $45 to $55 million, and net debt unchanged from last year. And we will continue to provide our monthly dividend to our shareholders, currently generating a generous yield of over 8%.

With that, I'll open the floor to questions. Thanks for calling in and for your continued interest and support of Petra's This concludes the conference. Thank you for your participation. You may now disconnect.