SEDAR Interim Financial Statements

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Presented in 000’s of Canadian dollars) As at September 30, 2025 December 31, 2024 ASSETS Current Cash 19 68 Carbon credits 324 590 Deposits and prepaid expenses (note 19) 2,942 2,740 Accounts receivable 9,021 11,553 Risk management asset (note 8) 5,117 2,632 Total current assets 17,423 17,583 Non-current Exploration and evaluation assets (note 3) 18,130 30,758 Property, plant and equipment (note 4) 369,811 350,937 Deferred income taxes 19,576 20,846 Total non-current assets 407,517 402,541 Total assets 424,940 420,124 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Bank indebtedness 400 — Revolving loan facility (note 5) 39,839 32,744 Accounts payable and accrued liabilities 11,927 17,287 Risk management liability (note 8) 44 — Lease obligations (note 6) 160 164 Current portion of decommissioning obligation (note 7) 1,495 1,073 Total current liabilities 53,865 51,268 Non-current liabilities Long term debt (note 5) 25,000 25,000 Lease obligations (note 6) 720 829 Decommissioning obligation (note 7) 38,563 39,607 Risk management liability (note 8) 303 39 Total liabilities 118,451 116,743 Shareholders’ equity Share capital (note 9) 500,746 491,875 Contributed surplus 36,484 35,325 Deficit (230,741) (223,819) Total shareholders' equity 306,489 303,381 Total liabilities and shareholders' equity 424,940 420,124 Commitments (note 17) See accompanying notes to the condensed interim consolidated financial statements Approved by the Board of Directors, (signed) “Don T. Gray” (signed) “Donald Cormack” Don T. Gray Donald Cormack Chairman Director Page |1 CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Presented in 000’s of Canadian dollars, except per share amounts) Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 REVENUE Oil and natural gas sales (note 18) 19,816 20,446 64,952 71,635 Royalty expense (1,533) (2,593) (6,246) (9,359) Net revenue (note 18) 18,283 17,853 58,706 62,276 Other income (expense) (24) 77 (106) 284 Net gain (loss) on financial instruments (note 8) (77) 9,850 8,860 3,391 Total income 18,182 27,780 67,460 65,951 EXPENSES Operating (note 11) 5,292 5,172 15,799 15,461 Transportation 1,312 1,239 4,074 4,113 General and administrative (note 12) 953 1,209 2,883 3,539 Share-based compensation 340 389 1,212 1,646 Finance (note 15) 2,063 2,060 5,736 6,039 Exploration and evaluation (note 3) 381 30 414 235 Depletion and depreciation (note 4) 11,404 10,247 31,501 31,123 Unrealized (gain) loss on foreign exchange (44) 90 (44) 394 Other — 216 — 216 Total expenses 21,701 20,652 61,575 62,766 INCOME (LOSS) BEFORE INCOME TAX (3,519) 7,128 5,885 3,185 Income tax expense (recovery) (842) 1,826 1,270 427 NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (2,677) 5,302 4,615 2,758 Net income (loss) per common share Basic (note 10) (0.02) 0.04 0.04 0.02 Diluted (note 10) (0.02) 0.04 0.04 0.02 See accompanying notes to the condensed interim consolidated financial statements Page |2 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) (Presented in 000’s of Canadian dollars) Share Capital Contributed Surplus Deficit Total Balance, December 31, 2023 492,205 31,848 (208,892) 315,161 Net income — — 2,758 2,758 Common shares repurchased (1,566) 1,055 — (511) Issuance of common shares on exercise of stock options 463 (332) — 131 Share-based compensation — 2,277 — --- 2,277 Dividends — — (9,947) (9,947) Balance, September 30, 2024 491,102 34,848 (216,081) 309,869 Balance, December 31, 2024 491,875 35,325 (223,819) 303,381 Net income — — 4,615 4,615 Common shares issued for dividend reinvestment (note 9) 8,114 — — 8,114 Common shares repurchased (228) 141 — (87) Issuance of common shares on exercise of stock options 997 (711) — 286 Share issue costs (note 9) (12) — — (12) Share-based compensation — 1,729 — 1,729 Dividends — — (11,537) (11,537) Balance, September 30, 2025 500,746 36,484 (230,741) 306,489 See accompanying notes to the condensed interim consolidated financial statements Page |3 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Presented in 000’s of Canadian dollars) Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 OPERATING ACTIVITIES Net income (loss) (2,677) 5,302 4,615 2,758 Adjust items not affecting cash: Share-based compensation 340 389 1,212 1,646 Unrealized loss (gain) on financial derivatives (note 8) 3,926 (7,735) (2,176) 1,000 Non-cash finance expenses (note 15) 440 403 1,289 1,150 Depletion and depreciation (note 4) 11,404 10,247 31,501 31,123 Exploration and evaluation expense (note 3) 381 30 414 235 Other income 189 216 238 98 Unrealized (gain) loss on foreign exchange (44) 90 (44) 394 Deferred income tax expense (recovery) (842) 1,826 1,270 427 Decommissioning expenditures (note 7) (201) (103) (582) (1,265) Funds flow 12,916 10,665 37,737 37,566 Change in operating non-cash working capital (note 16) 4,619 1,700 (3,102) 2,644 Cash flows from operating activities 17,535 12,365 34,635 40,210 FINANCING ACTIVITIES Shares repurchased (note 9) (87) — (87) (511) Stock options exercised (note 9) 108 — 286 131 Cash dividends paid (1,147) (3,734) (3,423) (11,192) Draw down of revolving loan facility 1,638 57 7,138 10,835 Increase (decrease) in bank indebtedness 74 92 400 (55) Transaction costs on debt (350) — (349) (350) Repayment of lease liabilities (note 6) (56) (65) (56) (192) Change in financing non-cash working capital (note 16) 87 (107) (87) (26) Cash flows from (used in) financing activities 267 (3,757) 3,822 (1,360) INVESTING ACTIVITIES Exploration and evaluation asset expenditures (note 3) (641) (114) (1,053) (114) Petroleum and natural gas property expenditures (note 4) (7,627) (4,745) (37,697) (23,995) Change in investing non-cash working capital (note 16) (9,555) (3,748) 244 (15,076) Cash flows used in investing activities (17,823) (8,607) (38,506) (39,185) Increase (decrease in cash) (21) 1 (49) (335) Cash, beginning of period 40 39 68 375 Cash, end of period 19 40 19 40 Cash interest paid (note 15) 1,623 1,657 4,447 4,888 See accompanying notes to the condensed interim consolidated financial statements Page |4 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) For the periods ended September 30, 2025 and 2024 1. NATURE OF THE ORGANIZATION Petrus Resources Ltd. (the “Company” or "Petrus") was incorporated under the laws of the Province of Alberta on November 25, 2015. The principal undertaking of Petrus is the investment in energy business-related assets. The operations of the Company consist of the acquisition, development, exploration and exploitation of these assets. These condensed interim consolidated financial statements reflect only the Company’s proportionate interest in such activities and are comprised of the Company and its subsidiaries, Petrus Res --- ources Corp. and Petrus Resources Inc. The Company’s head office is located at 1110, 240 - 4th Avenue SW, Calgary, Alberta, Canada. These condensed interim consolidated financial statements for the three and nine months ended September 30, 2025 and prior year comparative periods were approved by the Company’s Audit Committee and Board of Directors on November 5, 2025. 2. BASIS OF PRESENTATION Statement of Compliance These condensed interim consolidated financial statements have been prepared by management on a historical basis, except for certain financial instruments that have been measured at fair value. These condensed interim consolidated financial statements have been prepared in compliance with International Accounting Standard 34 “Interim Financial Reporting.” Certain information and disclosures normally included in the notes to the annual financial statements have been condensed. Accordingly, these condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 which have been prepared by management in compliance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). The preparation of these condensed interim consolidated financial statements requires the use of certain critical accounting estimates and also requires management to exercise judgment in applying the Company’s accounting policies. In preparing these condensed interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and key sources of estimation uncertainty were the same as those applied to the annual audited financial statements for the year ended December 31, 2024. The condensed interim consolidated financial statements have been prepared following the same accounting policies as the annual audited financial statements for the year ended December 31, 2024. These condensed interim consolidated financial statements are presented in Canadian dollars, which is the Company's functional currency, except where otherwise noted. Critical Accounting Estimates The Company’s critical accounting estimates can be read in note 2 to the Company’s audited consolidated financial statements as at and for the year ended December 31, 2024. The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, shareholders’ equity, revenue and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are continuously reviewed with the financial statement effect being recognized in the reporting period that the changes to estimates are made. Material Accounting Policies The Company’s material accounting policies can be read in note 3 to the Company’s audited consolidated financial statements as at and for the year ended December 31, 2024. New Accounting Standards In April, 2024 the IASB issued IFRS 18 "Presentation and Disclosure in Financial Statements" , which provides presentation and disclosure requirements for the primary financial statements and related notes, replacing IAS 1 "Presentation of Financial Statements". IFRS 18 introduces defined categories for income and expenses and requires disclosure of new defined subtotals, including operating profit. The new standard als --- o requires additional notes for management performance measures and disclosure of certain expenses by nature. There are some associated changes to the statement of cash flows, including the starting point for the calculation of cash flows from operating activities and the categorization of interest and dividends. IFRS 18 is effective January 1, 2027, with early adoption permitted. The new standard is required to be adopted retrospectively. The Company is assessing the impact of IFRS 18 on the Company's consolidated financial statements. In May, 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures to clarify the date of recognition and derecognition of financial assets and liabilities and provide further clarification on the classification of certain financial assets. The amendments are effective January 1, 2026 and are to be applied retrospectively. The Company is evaluating the impact that the amendments will have on the consolidated financial statements. Page |5 3. EXPLORATION AND EVALUATION ASSETS The components of the Company’s exploration and evaluation ("E&E") assets are as follows: $000s Balance, December 31, 2023 30,628 Additions 485 Exploration and evaluation expense (265) Transfers to property, plant and equipment (note 4) (90) Balance, December 31, 2024 30,758 Additions 1,053 Exploration and evaluation expense (414) Transfers to property, plant and equipment (note 4) (13,267) Balance, September 30, 2025 18,130 During the three and nine months ended September 30, 2025, the Company incurred exploration and evaluation expenses of $0.41 million for both periods, which relates to expired and nearly expired undeveloped, non-core land (three and nine months ended September 30, 2024 – $0.0 million and $0.2 million). During the period, the Company conducted a review of its land holdings and determined that certain leases within the Ferrier area that were previously presented within E&E would be more appropriately categorized as development assets and as a result the costs have been transferred from E&E to property, plant and equipment. The Company did not identify any indicators of impairment for the three and nine months ended September 30, 2025. 4. PROPERTY, PLANT AND EQUIPMENT The components of the Company’s property, plant and equipment ("PP&E") assets are as follows: $000s Cost Accumulated DD&A Net book value Balance, December 31, 2023 1,048,590 (693,487) 355,103 Additions 30,168 — 30,168 Increase in right of use asset 888 — 888 Capitalized G&A 1,161 — 1,161 Capitalized share based compensation 792 — 792 Transfer from exploration and evaluation assets (note 3) 90 — 90 Depletion & depreciation — (41,263) (41,263) Increase in decommissioning provision 3,998 — 3,998 Balance, December 31, 2024 1,085,687 (734,750) 350,937 Additions 36,876 — 36,876 Derecognition of right of use asset (1,451) 1,375 (76) Addition of right of use asset 30 — 30 Capitalized G&A 825 — 825 Capitalized share-based compensation (note 10) 517 — 517 Transfers from exploration and evaluation assets (note 3) 13,267 — 13,267 Depletion & depreciation — (31,501) (31,501) Decrease in decommissioning provision (note 7) (1,064) — (1,064) Balance, September 30, 2025 1,134,687 (764,876) 369,811 At September 30, 2025, estimated future development costs of $455.4 million (December 31, 2024 – $487.5 million) associated with the development of the Company’s proved plus probable undeveloped reserves were included with th --- e costs subject to depletion. During the three and nine months ended September 30, 2025, the Company capitalized $0.3 million and $0.8 million, respectively, of general and administrative expenses (“G&A”) (three and nine months ended September 30, 2024 – $0.2 million and $0.7 million) and non-cash share-based compensation of $0.1 million and $0.5 million, respectively, (three and nine months ended September 30, 2024 – $0.17 million and $0.63 million), directly attributable to development activities. The Company did not identify any indicators of impairment or impairment reversal for the three and nine months ended September 30, 2025. At September 30, 2025, the carrying balance of the right of use asset was $0.9 million. Page |6 5. DEBT At September 30, 2025, Petrus had two debt instruments outstanding; a reserve-based, secured operating revolving loan facility with an Alberta-based financial institution (the “Revolving Loan Facility” or “RLF”) and a second lien secured term facility (the "Second Lien Facility"). Revolving Loan Facility At September 30, 2025, the RLF was comprised of a $70.0 million operating facility payable on demand by the lender and has an interest rate of Canada Prime plus 2.5%. The amount of the RLF is subject to a borrowing base review performed on a semi-annual basis by the lender, based primarily on reserves and commodity prices estimated by the lenders as well as other factors. The next semi-annual review is due on November 30, 2025. At September 30, 2025, the Company had drawn $39.8 million against the RLF (December 31, 2024 – $32.7 million). Second Lien Facility At September 30, 2025 the Company had $25.0 million outstanding on the $25 million Second Lien Facility. The Second Lien Facility is a three-year term facility (maturity date May 31, 2027) with a fixed interest rate of 11% per annum and can be repaid at the discretion of the Company. The Second Lien Facility is a related party transaction with a major shareholder who owns approximately 21% of the outstanding shares of the Company. The total interest paid during the three and nine months ended September 30, 2025 to the major shareholder, related to the Second Lien facility, was $0.7 million and $2.1 million, respectively. Financial Covenants The Company's RLF is subject to certain financial covenants. The key financial covenant as at September 30, 2025 is summarized in the following table. At September 30, 2025 the Company is in compliance with all financial covenants. Financial Covenant Description Required Ratio As at September 30, 2025 Working Capital Ratio (as defined in the RLF agreement) Over 1.00 3.08 6. LEASES The Company's lease obligations are as follows: $000s Balance, December 31, 2024 993 Derecognition of lease liability (105) Additions 30 Finance expense 18 Lease payments (56) Balance, September 30, 2025 880 The Company's future commitments associated with its lease obligations are as follows: $000s As at September 30, 2025 Less than 1 year 223 1 to 3 years 447 4 to 5 years 390 Total lease payments 1,060 Amounts representing finance expense (180) Present value of lease obligation 880 Current portion of lease obligation 160 Non-current portion of lease obligation 720 Monthly payments on this lease obligation commenced July 1, 2025. 7. DECOMMISSIONING OBLIGATION The decommissioning liability was estimated based on the Company’s net ownership interest in all wells and facilities, the estimated costs to abandon and reclaim the wells and facil --- ities and the estimated timing of the costs to be incurred in future periods. The estimated future cash flows have been discounted using an average risk free rate of 3.5% and an inflation rate of 2.0% (3.32% and 2.0%, respectively at December 31, 2024). Changes in estimates in 2024 and 2025 are due to the changes in the risk free and inflation rates and changes in the estimated future cash flow to reclaim the wells and facilities. The Company has estimated the net present value of the decommissioning obligations to be $40.1 million as at September 30, 2025 ($40.7 million at December 31, 2024). The undiscounted, uninflated total future liability at September 30, 2025 is $50.6 million ($50.1 million at December 31, 2024). The payments are expected to be incurred over the operating lives of the assets. Page |7 The following table reconciles the decommissioning liability: $000s Balance, December 31, 2023 37,291 Liabilities incurred 299 Liabilities settled (1,776) Change in estimates or discount rate 3,699 Accretion expense 1,167 Balance, December 31, 2024 40,680 Liabilities incurred 1,048 Liabilities settled (582) Change in estimates or discount rate (2,114) Accretion expense 1,026 Balance, September 30, 2025 40,058 Current portion of decommissioning obligation 1,495 Non-current portion of decommissioning obligation 38,563 8. FINANCIAL RISK MANAGEMENT The Company utilizes commodity contracts as a risk management technique to mitigate exposure to commodity price volatility. The following table summarizes the financial derivative contracts Petrus had outstanding at September 30, 2025: Contract Period Type Total Daily Volume (GJ) Average Price (CDN$/GJ) Natural Gas Swaps Oct. 1, 2025 to Oct. 31, 2025 Fixed price 22,000 $2.34 Nov. 1, 2025 to Mar. 31, 2026 Fixed price 20,000 $3.26 Apr. 1, 2026 to Oct. 31, 2026 Fixed price 17,000 $2.60 Nov. 1, 2026 to Mar. 31, 2027 Fixed price 12,000 $3.39 Apr. 1, 2027 to Oct. 31, 2027 Fixed price 6,000 $2.61 Natural Gas Collars Oct. 1, 2025 to Oct. 31, 2025 Costless collar 1,000 $3.10-3.83 Oct. 1, 2025 to Oct. 31, 2025 Costless collar 1,000 $2.50-3.16 Nov. 1, 2025 to Mar. 31, 2026 Costless collar 1,000 $3.30-4.08 Contract Period Type Total Daily Volume (Bbl) Average Price (CDN$/Bbl) Crude Oil Swaps Oct. 1, 2025 to Dec. 31, 2025 Fixed price 1,900 $91.10 Oct. 1, 2025 to Sept. 30, 2026 Fixed price 200 $94.25 Jan. 1, 2026 to Mar. 31, 2026 Fixed price 300 $89.15 Jan. 1, 2026 to Jun. 30, 2026 Fixed price 400 $92.25 Jan. 1, 2026 to Dec. 31, 2026 Fixed price 1,000 $85.83 Apr. 1, 2026 to Dec. 31, 2026 Fixed price 100 $83.25 Jul. 1, 2026 to Sept. 30, 2026 Fixed price 100 $87.25 Jan. 1, 2027 to Mar. 31, 2027 Fixed price 100 $79.80 Jan. 1, 2027 to Jun. 30, 2027 Fixed price 500 $84.07 Page |8 Risk management asset and liability: $000s At September 30, 2025 Gross amount of recognized financial assets (liabilities) Gross amount of recognized financial assets (liabilities) offset on Balance Sheets Net amount of financial assets (liabilities) recognized on Balance Sheets Current commodity derivatives 5,896 (779) 5,117 Non-current commodity derivatives 392 (739) (347) 6,288 (1,518) 4,770 $000s At December 31, 2024 Current commodity derivatives 5,630 (2,998) 2,632 Non-current commodity derivatives 564 (603) (39) 6,194 (3,601) 2,593 Earnings impact of realized and unrealized gains (losses) on financial derivatives: $000s Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months --- ended Sept. 30, 2024 Realized gain on financial derivatives 3,849 2,115 6,684 4,391 Unrealized gain (loss) on financial derivatives (3,926) 7,735 2,176 (1,000) Net gain (loss) on financial derivatives (77) 9,850 8,860 3,391 9. SHARE CAPITAL Authorized The authorized share capital consists of an unlimited number of common voting shares without par value and an unlimited number of preferred shares. Issued and Outstanding Common shares ($000s) Number of shares Amount Balance, December 31, 2023 124,266,370 492,205 Common shares repurchased (396,100) (1,568) Common shares issued on exercise of stock options 842,614 779 Common shares issued for dividend reinvestment plan 400,245 459 Balance, December 31, 2024 125,113,129 491,875 Common shares repurchased (59,400) (228) Common shares issued on exercise of stock options 551,550 997 Common shares issued for dividend reinvestment plan 5,977,036 8,114 Share issue costs — (12) Balance, September 30, 2025 131,582,315 500,746 Dividends During the three and nine months ended September 30, 2025, the Company paid monthly dividends of $0.01 per common share totaling $1.1 million and $3.4 million, respectively. In connection with a Dividend Reinvestment Plan, during the three and nine months ended September 30, 2025, the Company issued common shares totaling 1.8 million and 6.0 million, respectively. For the three and nine months ended September 30, 2024, the Company paid monthly dividends of $0.01 per common share totaling $3.7 million and $11.2 million, respectively. As the Company's Dividend Reinvestment Plan commenced in December 2024, no shares were issued for the three and nine months ended September 30, 2024. Normal Course Issuer Bid ("NCIB") On June 26, 2025, the Company announced the approval of its renewed NCIB by the Toronto Stock Exchange ("the TSX"). The 2025 NCIB allows the Company to purchase up to 6,448,237 common shares over a period of twelve months, and expires on June 29, 2026. Purchases are made on the open market through the TSX or alternative Canadian trading platforms at the market price of such common shares. All common shares purchased under the NCIB are cancelled. The total cost paid, including commissions and fees, is first charged to share capital to the extent of the average carrying value of the Company’s common shares and the excess paid is recorded to retained earnings and any shortfall is recorded to contributed surplus. Page |9 For the three and nine months ended September 30, 2025, the Company repurchased 59,400 shares for cancellation at an average price of $1.46 per share totaling $0.09 million. During the nine months ended September 30, 2024, the Company repurchased 396,100 shares for cancellation at an average price of $1.30 per share totaling $0.5 million. SHARE-BASED COMPENSATION Stock Options The Company has a stock option plan in place whereby it may issue stock options to employees, consultants and directors of the Company. The aggregate number of shares that may be acquired upon exercise of all options granted pursuant to the plans shall, at any date or time of determination, be equal to ten percent (10%) of the number that is equal to (i) the number of the Company’s basic common shares then issued and outstanding; minus (ii) a number equal to five (5) times the number of common shares that are issuable upon exercise of the then outstanding Performance Warrants, if any, minus (iii) a number equal to fifty percent (50%) of the number of common shares that have --- previously been issued upon the exercise of Performance Warrants, if any. At September 30, 2025, 8,789,828 (December 31, 2024 – 8,482,331) stock options were outstanding. The summary of stock option activity is presented below: Number of stock options Weighted average exercise price Balance, December 31, 2023 8,616,900 $1.74 Granted 4,173,001 $1.50 Forfeited (550,000) $2.09 Expired (2,081,256) $2.20 Exercised (1,676,314) $0.77 Balance, December 31, 2024 8,482,331 $1.57 Granted 3,682,000 $1.37 Exercised (1,919,379) $1.19 Expired (1,455,124) $2.21 Balance, September 30, 2025 8,789,828 $1.46 Exercisable, September 30, 2025 341,376 $1.72 The following table summarizes information about the stock options granted and outstanding: Range of Exercise Price Stock Options Outstanding Number granted Weighted average exercise price Weighted average remaining life (years) $1.26 to $1.48 7,415,400 $1.37 1.58 $1.51 to $1.78 834,010 $1.62 0.51 $2.09 to $2.81 540,418 $2.52 0.50 8,789,828 $1.46 1.41 During the nine months ended September 30, 2025 the Company granted 3,682,000 options which vest equally over three years, and upon vesting, expire within 90 days thereafter. The weighted average fair value of each option granted during the nine months ended September 30, 2025 of $1.37 was estimated on the date of grant using the Black-Scholes pricing model with the following weighted average assumptions: 2025 2024 Risk free interest rate 2.50% - 2.72% 3.23% - 4.79% Expected life (years) 1.00 - 3.00 1.00 - 3.00 Estimated volatility of underlying common shares (%) 36.09% - 42.40% 72.62% - 77.90% Estimated forfeiture rate 5 % 5 % Expected dividend yield (%) 8% - 9% 9 % Petrus estimated the volatility of the underlying common shares by analyzing the Company's volatility as well as the volatility of peer group public companies with similar corporate structure, oil and gas assets and size. Page |10 Restricted Share Unit ("RSU") Plan The Company has a restricted share unit plan in place whereby it may issue restricted share units to officers, employees and consultants of the Company. Each RSU entitles the participants to receive, at the Company's discretion, either shares of the Company or cash equal to the trading price of the equivalent number of shares of the Company. All RSUs unless otherwise determined by the Board, vest as to one-third (1/3) annually over three years from the grant date. At September 30, 2025, 470,000 RSUs were issued and outstanding (December 31, 2024 – 470,000). Deferred Share Unit ("DSU") Plan The Company has a deferred share unit plan in place whereby it may issue deferred share units to directors of the Company. The aggregate number of shares that may be issued from treasury of Petrus pursuant to the plan shall not exceed: (i) five percent (5%) of the number of issued and outstanding common shares of the Company (on a non-diluted basis) at the date of issue; and (ii) ten percent (10%) of the number of issued and outstanding common shares of the Company (on a non-diluted basis) at the date of issue, less the aggregate number of common shares of the Company reserved for issuance under any other share compensation plan. Each DSU entitles the participants to receive, at the Company's discretion, either shares of the Company or cash equal to the trading price of the equivalent number of shares of the Company. All DSUs granted vest and become payable upon retirement of the director. The compensation expense was calculated as equity using the f --- air value method based on the trading price of the Company's shares on the grant date. At September 30, 2025, 1,932,005 DSUs were issued and outstanding (December 31, 2024 – 1,811,963). On each date that a dividend payment is made, holders of DSUs are credited with additional DSUs; the number of additional DSUs is calculated by dividing the dividends that would have been paid to such holder if the DSUs held at the record date of the cash dividend had been common shares, by the fair market value of the common shares on the date on which the dividends are paid on the common shares. Share-based Compensation The following table summarizes the Company’s share-based compensation costs: $000s Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 Expensed 340 389 1,212 1,646 Capitalized to property, plant and equipment 145 167 517 631 Total share-based compensation 485 556 1,729 2,277 10. NET INCOME (LOSS) PER SHARE Net income (loss) per share amounts are calculated by dividing the net income for the period attributable to the common shareholders of the Company by the weighted average number of common shares outstanding during the period. Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 Net income (loss) for the period ($000s) (2,677) 5,302 4,615 2,758 Weighted average number of common shares – basic (000s) 130,342 124,372 128,228 124,354 Weighted average number of common shares – diluted ( ) 130,342 126,686 130,806 124,871 Net income (loss) per common share – basic ($0.02) $0.04 $0.04 $0.02 Net income (loss) per common share – diluted ($0.02) $0.04 $0.04 $0.02 In computing diluted income per share for the three months ended September 30, 2025, 8,789,828 outstanding stock options were excluded as the Company was in a net loss position for the period ended. For the nine months ended September 30, 2025, 4,143,927 options were excluded as they were anti-dilutive (three months ended September 30, 2024 – 8,266,725 outstanding stock options and nine months ended September 30, 2024 8,288,513 outstanding stock options and 1,774,654 DSUs. Page |11 11. OPERATING EXPENSES The Company’s operating expenses consisted of the following expenditures: $000s Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 Fixed and variable operating expenses 3,965 4,138 12,312 12,967 Processing, gathering and compression charges 1,718 1,371 4,591 3,520 Total gross operating expenses 5,683 5,509 16,903 16,487 Overhead recoveries (391) (337) (1,104) (1,026) Total net operating expenses 5,292 5,172 15,799 15,461 12. GENERAL AND ADMINISTRATIVE EXPENSES The Company’s general and administrative expenses consisted of the following expenditures: $000s Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 Gross general and administrative expense 1,483 1,587 4,857 4,804 Capitalized general and administrative expense (292) (256) (826) (735) Capital overhead recoveries (238) (122) (1,148) (530) General and administrative expense 953 1,209 2,883 3,539 13. FINANCIAL INSTRUMENTS Risks associated with financial instruments Credit risk The Company’s accounts receivable are with customers and joint venture partners in the petroleum and natural gas business and are subject --- to normal credit risk. Concentration of credit risk is mitigated by marketing the majority of the Company’s production to reputable and financially sound purchasers under normal industry sale and payment terms. As is common in the petroleum and natural gas industry in western Canada, Petrus’ receivables relating to the sale of petroleum and natural gas are received on or about the 25th day of the following month. Of the $9.0 million of accounts receivable outstanding at September 30, 2025 (December 31, 2024 – $11.6 million), $7.0 million is owed from 3 parties (December 31, 2024 – $5.4 million from 2 parties), and the balances were received subsequent to the quarter end. The Company considers accounts receivable outstanding past 120 days to be 'past due'. At September 30, 2025, the Company had an allowance for doubtful accounts of $0.1 million (December 31, 2024 – $0.1 million). The Company does not anticipate any material collection issues. The Company’s risk management assets and cash are with chartered Canadian banks and the Company does not consider these assets to carry material credit risk. Liquidity risk At September 30, 2025, the Company had a $70.0 million RLF, of which $39.8 million was drawn (December 31, 2024 – $32.7 million). For the three and nine months ended September 30, 2025, the Company generated cash flow from operating activities of $17.5 million and $34.6 million, respectively. The following are the contractual maturities of financial liabilities as at September 30, 2025: $000s Total < 1 year 1-5 years Accounts payable and accrued liabilities 11,927 11,927 — Long-term debt and related interest payments 29,575 2,744 26,831 Bank indebtedness and related interest payments 439 439 — Revolving Loan Facility and related interest payments 42,707 42,707 — Risk management liability 44 44 — Lease obligations 1,061 223 838 Total 85,753 58,084 27,669 At September 30, 2025, the Company had a working capital deficiency (excluding non-cash risk management assets and liabilities) of $41.5 million, primarily due to the $39.8 million drawn on the RLF, which is classified as a current liability. The RLF has a credit limit of $70 million and is payable upon demand, with the borrowings classified as current liabilities as of September 30, 2025. Page |12 Interest Rate Risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. The Company’s cash, bank indebtedness and accounts receivable are not exposed to significant interest rate risk. The RLF is exposed to interest rate cash flow risk as the instrument is priced on a floating interest rate subject to fluctuations in market interest rates. The remainder of Petrus’ financial assets and liabilities are not exposed to interest rate risk. A 1% increase in the Canadian prime interest rate during the three and nine months ended September 30, 2025 would have increased/decreased net income by approximately $0.4 million for both periods, which relates to interest expense on the average outstanding RLF during the periods assuming that all other variables remain constant (September 30, 2024 – $0.3 million). Commodity Price Risk Commodity price risk is the risk that the fair value of future cash flows will fluctuate as a result of changes in commodity prices. A significant change in commodity prices can materially impact the Company’s borrowing base limit under its RLF and may reduce the Company’s ability to raise capital. Commodity --- prices for petroleum and natural gas are not only influenced by Canadian and United States demand, but also by world events that dictate the levels of supply and demand. The Company manages the risks associated with changes in commodity prices by entering into a variety of financial derivative contracts (see note 8). The Company assesses the effects of movement in commodity prices on net loss. When assessing the potential impact of these commodity price changes, the Company believes a $5/CDN WTI/bbl change in the price of oil and a $0.25/GJ change in the price of natural gas are reasonable measures. At September 30, 2025, it was estimated that a $0.25/GJ decrease in the price of natural gas would have decreased net loss by $2.7 million (September 30, 2024 – $2.0 million). An opposite change in commodity prices would result in an opposite impact on net loss. At September 30, 2025, it was estimated that a $5.00/CDN WTI/bbl decrease in the price of oil would have decreased net loss by $4.2 million (September 30, 2024 – $2.9 million). An opposite change in commodity prices would result in an opposite impact on net loss. Foreign Exchange Risk The Company is exposed to the risk of changes in the U.S./Canadian dollar exchange rate on crude oil sales based on U.S. dollar benchmark prices and commodity contracts that are settled in U.S. dollars. Foreign exchange risk is mitigated by entering into Canadian dollar denominated commodity risk management contracts. 14. CAPITAL MANAGEMENT The Company’s general capital management policy is to maintain a sufficient capital base in order to manage its business to enable the Company to increase the value of its assets and therefore its underlying share value. In the management of capital, the Company includes share capital and total net debt, which is made up of debt and working capital (current assets less current liabilities). The Company manages its capital structure and makes adjustments in light of economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, Petrus may issue new equity, increase or decrease debt, adjust capital expenditures and acquire or dispose of assets. 15. FINANCE EXPENSES The components of finance expenses are as follows: $000s Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 Cash: Interest 1,451 1,493 3,969 4,427 Finance fees 172 164 478 460 Foreign exchange — — — 1 Total cash finance expenses 1,623 1,657 4,447 4,888 Non-cash: Deferred financing costs 88 106 263 274 Accretion on decommissioning obligations (note 7) 352 297 1,026 877 Total non-cash finance expenses 440 403 1,289 1,151 Total finance expenses 2,063 2,060 5,736 6,039 Page |13 16. SUPPLEMENTAL CASH FLOW INFORMATION The following table reconciles the changes in non-cash working capital as disclosed in the statements of cash flows: $000s Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 Source (use) in non-cash working capital: Deposits and prepaid expenses 225 87 (115) (612) Transaction costs on debt 73 (157) (88) (75) Carbon credits — — — 927 Accounts receivable 2,722 2,376 2,532 8,816 Accounts payable and accrued liabilities (7,869) (4,461) (5,275) (21,514) (4,849) (2,155) (2,946) (12,458) Operating activities 4,619 1,700 (3,102) 2,644 Financing activities 87 (107) (87) (26) Invest --- ing activities (9,555) (3,748) 244 (15,076) The following table reconciles the changes in liability resulting from financing activities: $000s Bank Indebtedness Revolving Credit Facility Term Loan Total Liabilities from Financing Activities Balance, December 31, 2024 — 32,744 25,000 57,744 Cash flows 400 7,139 — 7,539 Non-cash changes — (44) — (44) Balance, September 30, 2025 400 39,839 25,000 65,239 17. COMMITMENTS AND CONTINGENCIES Commitments The commitments for which the Company is responsible are as follows: $000s Total < 1 year 1-5 years > 5 years Firm service transportation 7,060 2,668 4,392 — Contingencies In the normal course of Petrus’ operations, the Company may become involved in, named as a party to, or be the subject of, various legal proceedings. The outcome of outstanding, pending or future proceedings cannot be predicted with certainty. Petrus does not anticipate that these claims will have a material impact on its financial position. 18. REVENUE The following table presents Petrus' oil and natural gas revenue disaggregated by product type: $000s Three months ended Sept. 30, 2025 Three months ended Sept. 30, 2024 Nine months ended Sept. 30, 2025 Nine months ended Sept. 30, 2024 Production Revenue Oil and condensate sales 11,415 12,714 30,865 37,776 Natural gas sales 3,234 2,734 17,333 17,008 Natural gas liquids sales 5,134 4,958 16,630 16,704 Royalty revenue 33 40 124 147 Total oil and natural gas sales 19,816 20,446 64,952 71,635 Royalty expense (1,533) (2,593) (6,246) (9,359) Net revenue 18,283 17,853 58,706 62,276 Page |14 19. DEPOSITS AND PREPAID EXPENSES The components of the Company’s deposits and prepaid expenses for the periods indicated are as follows: $000s As at September 30, 2025 As at December 31, 2024 Prepaid interest and bank fees 233 146 Prepaid insurance 73 380 Prepaid operating expenses 29 19 Prepaid property tax 459 — Prepaid software 362 206 Deposits 1,786 1,989 Deposits and prepaid expenses 2,942 2,740 Page |15 CORPORATE INFORMATION OFFICERS & VICE PRESIDENTS DIRECTORS SOLICITOR Ken Gray, P.Eng President and Chief Executive Officer Don T. Gray Chairman Scottsdale, Arizona Burnet, Duckworth & Palmer LLP Calgary, Alberta Mathew Wong, CPA, CFA, CPA (WA, USA) Chief Financial Officer Ken Gray Calgary, Alberta AUDITOR PricewaterhouseCoopers LLP (PwC) Chartered Professional Accountants Calgary, Alberta Matt Skanderup Chief Operating Officer Patrick Arnell Calgary, Alberta Lindsay Hatcher Vice President, Commercial & Corporate Development Donald Cormack Calgary, Alberta INDEPENDENT RESERVE EVALUATORS InSite Petroleum Consultants Ltd. Calgary, Alberta Peter Verburg Calgary, Alberta BANKERS ATB Financial Calgary, Alberta TRANSFER AGENT Odyssey Trust Company Calgary, Alberta HEAD OFFICE 1110, 240 – 4th Avenue S.W. Calgary, Alberta T2P 4H4 Phone: 403-984-9014 Fax: 403-984-2717 WEBSITE www.petrusresources.com Page |16