Petrus Resources Ltd.

Good day and thank you for standing by. Welcome to Petrus Resources' first quarter 2026 results conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Today's conference is being recorded. I will now hand the conference over to your speaker host, Matt Kendrick. Chief Operating Officer, please go ahead, sir.

Good morning and welcome to the Petrus Resources Q1 2026 conference call. I am Matt Skendrup. I am the COO here at Petrus. Ken Gray, our CEO, is not available this morning for our call. I am joined by our CFO, Matthew Wong, and our VP Corporate and Commercial Development, Lindsay Hatcher. We just released Q1 2026 quarter results, and this quarter has been an interesting start to the new year, to say the least. We have seen and continue to see dramatic volatility in the oil market, and inflationary pressures due to rising energy prices have suddenly started to make an impact on people's lives, no matter where you live. The effect that the current conflict in the Middle East is having on the supply of oil is frankly the most disruptive we have seen in recent history. We are at a point where the demand for oil is simply more than the supply that can be produced, transported, and used across the globe. To date, strategic reserves and cautionary measures taken by governing bodies across the world have helped to lessen the shock of the drastically reduced supply and time will only tell how quickly this balance comes back into place. Despite everything that's happening across the globe, here at Petrus, we've been working hard to continue to execute projects efficiently and cost-effectively as always. At home here in Canada, we are fortunate to have the opportunity and ability to continue to execute our operations and work to continue to add value to the company for all of our shareholders. During the quarter, we closed the Harmattan acquisition effective February 1st, adding a complimentary liquids-weighted asset with strong development upside. The assets will provide additional inventory to support our ongoing development plans and add long-term flexibility and optionality. Reported Q1 production reflects only a partial contribution given the timing of when volumes were recognized from an accounting perspective. but the assets are now fully contributing as expected. The Harmattan assets have been seamlessly integrated into Petrus's existing operations. We are also happy to report that we have received final approvals regarding the acquisition from the Alberta Energy Regulator. The team here continues to work hard to ensure the new property is running as efficiently as possible, and we are looking forward to drilling our first wells in the area when we return to drilling after spring breakup. The smooth transition is a compliment to everyone here at Petrus who is involved in making this happen. We started the 2026 capital program off strong in Q1, drilling eight new operated tardium wells in Farrier. Of those, four are completed and were brought onto production near the end of March with strong initial results, but they had minimal impact on this quarter's production due to the late on-stream timing. Completion operations on the remaining four wells are scheduled to start early next week, with production expected later in May or in early June. With a wet and snowy April, we chose to hold off on completions of these wells to minimize the costs associated with spring breakup conditions. Overall, the quarter was focused on capital spending to drive as much production and cash flow as possible throughout the remainder of the year. As we look forward to the rest of 2026, we will continue to execute our development plan in line with our previously released 2026 capital budget and guidance. We are constantly evaluating changing market conditions to ensure that we develop our assets efficiently and continue to add value to the company for the long term. On behalf of the team here at Petrus, I would like to thank you for your time and continued support. We would be happy to take any questions you might have now or always feel free to reach out to one of the team members here. All of our contact information is available on our website.

Ladies and gentlemen, if you'd like to ask a question at this time, please press star 1-1 on your touch phone telephone. We'll give a moment to compile the KNA roster. And I see we have a question coming from the line of Nathan Ritchie. We've got energy report.