Petrus Resources Ltd.

Good day and thank you for standing by. Welcome to the Petris Resources Second Quarter 2026 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 will then hear an automated message advising your hand is raised. To withdraw 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, you may go ahead.

Good morning. Thanks for tuning in to the Patris Resources 2026 Q2 conference call. I'm Ken Gray, CEO of Petrus, and as usual, I'm joined by our executive team of Matt Skanderup, COO, Matthew Wong, CFO, and Lindsay Hatcher, VP Commercial and Corporate Development. I want to thank Matt for filling in for me last quarter on the conference call, but I'm happy to be back on this call to talk about our Q2 results and what lays ahead. Q2 was a strong quarter for the company, and some of the moves we've made recently are starting to show up in our results. I think the biggest thing to note in Q2 was the improvement in our operating net back, which was up 92% from a year ago to $24.9 million. This was the result of both increased production, higher liquids weighting, and improved liquids pricing. Hedging losses somewhat masked the dramatic improvement in operating results, but parts flow for the quarter was still up a very respectable 32% from a year ago. Production averaged 11,070 DOE per day for the quarter, up 21% from a year ago. We did bring on seven 6.1 net New Farrier Wells in the quarter, but we still didn't see full contribution from the Harmattan acquisition, as we had some scheduled facility maintenance in April and May that temporarily curtailed production. In June, we finally saw full contribution from Harmattan and the new wells, and corporate production was over 12,000 PoE per day, the highest average monthly production in Petra's history. Global events continued to support liquids pricing, which was quite strong for the quarter with oil prices up 59% and NGL prices up 39% from a year ago. The increased liquids pricing combined with an increased liquids weighting of 39% for the quarter led to a realized price of $37.66 per DOE, which was up 46% from a year ago, despite an 18% drop in natural gas prices. Overall, that's a very good first half of the year. We've since drilled and completed a couple of oil wells in Armattan, which were brought on production August 1st. These are the first wells we've drilled in the area since acquiring it in the first quarter and we look forward to sharing the results once available. We also have one more farrier well to complete and bring on production later this month and we are currently drilling some joint venture block wells which are scheduled to come on in October. We continue to execute efficiently on the operations side. On the pricing side, oil prices have been very volatile with no end to that insight. Natural gas prices remain weak, but with a positive long-term outlook. To be honest, price volatility is a constant in this business, so it's really business as usual for us. Regardless of where prices go, Petrus, with its strong operational efficiency, disciplined capital investment, and consistent risk management is in a fundamentally strong position to take advantage of future opportunities while continuing to pay a high yield dividend to our shareholders. Thanks for your interest in Petrus and thanks to our shareholders for their continued support. With that, we'll now be happy to answer any questions.

Thank you. As a reminder, if you would like to ask a question, please press star 1 on your telephone. You will then hear that automated message advising your hand is raised. We also ask that you please wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. The first question that I have is coming from the line of Joseph Sankter of CRC. Please go ahead.

Good morning, Ken, Lindsay, Matthew, and Matt. Great Quarter, so very pleased on that. Thirty-three million was spent in the first six months, and you give a range of 50 to 60. What is the thought process of that extra 10 million spend from the low to the high? What are you thinking there? Where are you thinking of spending that money? Just your thoughts on that, and if you do spend at the higher end, are we looking at an exit number north of 13,000? B. Louisa Day for 2026.

Thanks for calling in, Joseph. Right now I think we're are expected to come in sort of in the higher end of that range, under 60, but on the higher end. We don't have any additional plans. That $10 million range is just kind of depending on variability. We like to give ourselves a little bit of room for... for whatever might happen, and certainly lots of things go on and go into the forecast. So we're right on schedule. As far as production goes, we hit 12,000 in June. We're expecting to kind of maintain that 12,000 or a little higher through the rest of the year exit rate. I'd love it if we hit 13,000. I'm not sure we'll quite get there, but you never know. The other thing I'd say on the capital side of things is that kind of current plan, and that was the plan at the start of the year, depending on what happens sort of with the rest of the year, we do have wells that we can accelerate into Thank you for joining us. Thank you.

One more for me. Are you finding any serendipitous in the drilling where the outcomes have been much better than you thought? Are there certain areas that are standing out where you have more drilling inventory that you may focus on in As you said, move wells in from 27 to 26 or be aggressive more on those in 27?

Yeah, I think, you know, where we're drilling, the results have been pretty much according to forecast. We're going to see, you know, the one thing we're kind of waiting on right now is these two hard batten wells we've just drilled. We brought them on August 1st. They're cleaning up right now, so we'll see how those come in. We're optimistic about them, and certainly if those ones came in well above what we forecast, then we would look to try to accelerate something there. The wells we drilled up in the north area, they look great. We're a little bit constrained on infrastructure there just given the rates and stuff we're trying to put through that pipeline. That dictates that we spread things out a little bit up there. We do obviously always look at look at results and adjust our forecast and our program based on the current knowledge. So the biggest thing right now is kind of seeing where these harm Attenwells end up.

Super. Okay, thanks for answering my questions. Have a good day. Thanks, Joseph.

Thank you. One moment for the next question. Our next question is coming from the line of Christopher Jones of Haywood Securities. Please go ahead.

Hey, Chris, we can't hear you.

Hello? Lisa, are you on the line still?

Yes, I'm still here on the line. I'm looking to see what might have happened with it. It looked like his line slowly faded out.

Okay. Well, we'll just get you back in here. As a reminder, if you would like to ask a question, please press star one on your telephone. It doesn't look like Chris is showing back up, so maybe we'll just end the call, and we can follow up with Chris after, see if he has any questions.

Okay. Well, this does conclude today's program. Thank you so much for joining. You may now disconnect.