Petrus Resources Announces Closing of Previously Announced Deep Basin Acquisition and Equity Financings, 2026 Budget Guidance

Executive Summary

• Petrus Resources completed its $33.4 M acquisition of oil‑weighted Cardium assets in the Harmattan area of Alberta.
• The company closed equity financings that raised approximately $20.7 M by selling 11,814,285 common shares at $1.75 each (including full over‑allotment exercise). Net proceeds were used to repay acquisition debt and pay advisory fees.
• Board approved a 2026 capital budget of $50–$60 M, projecting average production of 11,000–12,000 boe/d, funds flow of $60–$65 M, maintenance of the $0.01/share monthly dividend, and net debt of $75–$80 M (1.2‑1.3× net‑debt‑to‑funds‑flow).

Key Details

• Acquisition Terms – Total consideration ≈ $33.4 M (subject to customary adjustments); includes assumption of certain post‑closing vendor obligations.
• Equity Financing Structure – Private placement (bought‑deal) plus non‑brokered placement; 11,814,285 common shares issued at $1.75 per share; gross proceeds ≈ $20.7 M.
• Use of Proceeds – Net financing proceeds applied to repay debt incurred for the acquisition; 85,714 additional shares issued to Haywood Securities as partial advisory fee payment.
• Capital Budget (2026) – $50‑$60 M allocated primarily to developmental drilling in the Ferrier core area and further investment in the newly acquired Harmattan assets; remainder for facilities, infrastructure, and land acquisitions.
• Production Guidance – Expected average 2026 production of 11,000–12,000 boe/d (≈ 40 % oil & liquids, 60 % natural gas).
• Financial Outlook – Anticipated funds flow of $60‑$65 M (~$0.40 per share); monthly dividend maintained at $0.01 per share; projected net debt of $75‑$80 M (1.2‑1.3× net‑debt‑to‑funds‑flow).
• Impact of Acquisition – Production increase ≈ 20 % and funds flow increase ≈ 19 % versus pre‑acquisition outlook; improves liquids weighting and shifts commodity mix toward higher‑value barrels.
• Hedging Position – Prior to closing, 57 % of forecast 2026 production hedged at $2.88/GJ (natural gas) and CAD $86.22/bbl (oil); company intends to add hedges to maintain ≥ 50 % of forecast production hedged on a boe basis over the next 12 months.
• Dividend Policy – Continuation of monthly dividend of $0.01 per share, representing roughly 7 % of current share price on an annualized basis.

Notable Quotes

“Following the completion of the Acquisition, Petrus enters 2026 with greater scale, improved liquids exposure and a strong balance sheet.” – Ken Gray, President & CEO

Materiality Assessment: Material – Positive (the acquisition, financing, and updated guidance are material to investors and represent a positive development for the company).