Slides
Page 1
Petrus Resources PRQ.TO Corporate Update August 6 , 2026
Page 2
OPERATIONS Deep Basin Producer Calgary-based producer developing high-quality Deep Basin assets. Liquids-Rich Production Liquids-rich wells with predictable geology and long producing lives. STRATEGIC ASSET ADVANTAGE High Ownership Model Large working interest in land with 100% ownership of processing facilities and pipeline infrastructure. Low-Risk Development Repeatable drilling with predictable capital and production outcomes. DISCIPLINED BUSINESS MODEL Disciplined Investment & Aligned Leadership Investments meet strict internal return thresholds and meaningful insider ownership aligns leadership with shareholders. Shareholder Returns Stable cash flow from long-life assets supports a regular monthly dividend of $0.01/share. PETRUS: WHO ARE WE? Alberta Deep Basin producer focused on disciplined development of high-quality assets 2
Page 3
WA Shares Outstanding Q2 Regular Monthly Dividend5 Credit Facilities Second Lien (Matures May 2030)7 Total Net Debt (Inc. Working Capital)6 Q2 2026 Average Production1 Current Production2 Q2 Commodity Weighting3 Base Decline Q2 2026 Funds Flow Annualized Production & Funds Flow Capital Structure PETRUS: SNAPSHOT Q2 2026 Highlights, Corporate Overview, Market Summary & Capital Structure FOOTHILLS 120 boe/d2 CENTRAL AB 1,003 boe/d2 FERRIER 8,853 boe/d2 HARMATTAN ~2,015 boe/d2 1) Represents average quarterly production reported for Q2 2026. 2) Current production and production by area based on estimated production for June 2026. 3) Commodity weighting based on Q2 average production. 4) Q2 2026 annualized funds flow per share represents Q2 2026 funds flow annualized divided by the weighted average number of shares outstanding for Q2 2026. 5) Dividend yield is based on forecasted monthly dividend payments of $0.01/share per month and closing share price of $1.65/share on June 30, 2026. The monthly dividend is subject to approval by the Board of Directors. 6) Amounts drawn on credit facilities and total net debt at June 30, 2026. Net debt includes working capital. 7) Second lien debt holder is major shareholder who was integral to the restructuring of Petrus’ debt, so interests are aligned with all shareholders. Second lien matures May 31, 2030. 11,070 boe/d 12,000 boe/d 61% Gas, 39% Oil & Liquids 22% $65.3 MM ($0.44/share)4 147.9 MM (~71% insiders) $0.01/share, 7% yield5 $120 MM (~$56.5 MM drawn)6 $25 MM (~$25 MM drawn)6 Approx. $84.3 MM 3
Page 4
STRATEGY: UNLOCKING PROVEN VALUE Uniquely positioned to generate meaningful long-term value for shareholders 4 Committed to Delivering Sustainable Long-Term Value “Over the past few years, we’ve strategically positioned the business to create sustainable long-term value. We will continue to invest in our assets, prioritizing free-cash flow and risk-managed growth. Through this strategy we expect to continue delivering meaningful returns to our shareholders.” - Ken Gray, President & CEO 1) Approved 2026 capital budget of $50-$60 million.
Page 5
2026 CAPITAL BUDGET1 Development focused capital concentrated in Ferrier & newly acquired Harmattan area 5 Ferrier Harmattan Non-Core & Corporate Drill, Complete, Equip & Tie-In Pipelines & Facilities Land, Seismic & Other $3MM-$5MM (4%) $40MM-$45MM (79%) $7MM-$10MM (17%) Capital Budget $50MM-$60MM Funds Flow $60MM-$65MM Monthly Dividend $0.01/share2 Exit Net Debt 1.2X-1.3X Debt/Funds Flow 2026 Capital Budget & Guidance 1) All 2026 estimates based on approved 2026 capital budget of $50MM -$60MM and forecasted 2026 results. 2) The monthly dividend of $0.01/share is subject to approval by the Board of Directors Disciplined capital spending supported by funds flowOil 19% NGLs 21% Gas 60% 11,000-12,000 boe/d1 (40% Liquids)
Page 6
1) Represents 2026 forecast production for the acquired assets based on 2026 capital budget and guidance. Boe conversion uses a 6:1 ratio. 2) See "Drilling Locations" in Reader Advisories. 3) Based on an independent reserve evaluation effective December 31, 2024 prepared by InSite Petroleum Consultants Limited, a qualified reserves evaluator, before tax, discounted at 10%. The report represents the most recent third-party reserves evaluation available at the time of the acquisition. 4) Operating income multiple based on estimated 2025 operating income from the acquired assets of $16.3 million. 5) $/flowing boe/d based on ~2,000 boe/d average estimated production for January 2026. Acquisition Overview STRATEGIC ACQUISITION: HARMATTAN, ALBERTA Operated, oil-weighted Cardium production expands Deep Basin footprint 6 • Petrus Land • Petrus Facilities AltaGas Harmattan Gas Plant Multi-Well Battery 12-18 Oil Battery (100% WI) 09-05 Compressor (100% WI) Multi-Well Battery Purchase Price $33.4MM 2026E Production1 2,000 boe/d Net Locations (Proved / Proved + Probable)2 13.4 / 32.6 Net Undeveloped Acreage 22,626 PDP Reserves (Mboe, NPV10)3 5,818 Mboe, $66.1MM 2P Reserves (Mboe, NPV10)3 9,505 Mboe, $85.6MM Acquisition Metrics Multiple of 2025 Operating Income4 2.1X $/Flowing boe of Production5 $16,700/boe % of PDP Reserves NPV103 51% % of 2P Reserves NPV103 40%
Page 7
FERRIER Economics & Drilling Locations Expands Core Deep Basin Scale Adds operated, oil-weighted production, aligns with Petrus’ focus on high working interest assets and extends development runway in a proven Deep Basin area. Improves Production Mix and Cash Flow Profile Increases corporate liquids weighting, improving optionality and resilience through commodity price cycles while expanding the PDP reserve base and supporting free cash flow generation. Supports Disciplined 2026 and Long-Term Growth Enables a more consistent, capital-efficient development program, improves cost structure, and positions Petrus for continued growth and sustainable shareholder returns. 1) 2026E metrics based on Petrus’ 2026 capital budget and guidance. 2) Pro forma estimates assume the acquisition is effective February 1, 2026; impact calculated using midpoint of guidance ranges . 3) Net debt to funds flow calculated using forecasted year-end net debt and forecasted annual funds flow. Funds flow is a non-GAAP financial measure. See Advisories. 4) Funds flow per share is calculated as annual funds flow divided by forecasted basic shares outstanding. Funds flow, funds flo w per share and net debt to funds flow are non-GAAP financial measures. See Advisories. 7 STRATEGIC ACQUISITION: RATIONALE & IMPACT Accretive Cardium acquisition driving growth, maintaining balance sheet discipline Acquisition Impact – 2026 Estimates1 Metric PRQ-Pre Acq. Pro Forma2 Impact2 Production (boe/d) 9,000-10,000 11,000-12,000 +20% Liquids Weighting 35% 40% +14% Funds Flow $50MM-$55MM $60MM-$65MM +19% Net Debt/Funds Flow3 1.2-1.3X 1.2-1.3X Neutral Funds Flow/Share4 $0.36-$0.39/sh $0.39-$0.43/sh +9% Pro forma impact is calculated using midpoint of 2026 guidance ranges. Larger scale, higher liquids weighting and disciplined leverage.
Page 8
FERRIER Economics & Drilling Locations Ferrier Overview • 8,853 boe/d total production (32% liquids)1 • Cardium-focused, condensate and liquids-rich natural gas • Multi-zone potential, inc. Belly River and the Mannville group • High working interest and control • 300+ drilling locations across Cardium and other formations • Operational flexibility to target highest return projects Strategic Infrastructure Advantage • Extensive owned and operated facilities, pipeline infrastructure • Infrastructure control ensures pace, timing and optionality • Third-party volumes generate additional revenue • Low operating costs – Q2 Opex $3.15/boe DEEP BASIN ASSETS: FERRIER AREA High Ownership, Strategic Infrastructure, Multi-Zone Potential and Low Costs 1) June 2026 average daily production and total liquids weighting. 8
Page 9
Land Position and Drilling Locations1 1) 20-year drilling inventory estimate based on total current gross locations and a continued drilling pace of 15 gross wells per y ear. 2) Locations and total inventory counts are gross and include a combination of booked locations as identified by Sproule Associates Limited (“Sproule”) and unbooked locations which are internal estimates based on Petrus‘ internal evaluations. 3) “Other” locations are gross and refer to Viking, Belly River, Glauconitic and other Mannville formations including the Notikewin, Falher, Ostracod and Ellerslie. DEEP BASIN ASSETS: FERRIER OPPORTUNITIES Extensive Multi-Zone Drilling Inventory Supporting Long Term Growth 154 192 11 156 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Cardium Locations Other Locations Cardium Mannville Group Belly River Viking Glauconitic Ellerslie Falher Ostracod Inc. A & B Sands 20+ Year Drilling Inventory1 • Extensive inventory of high-quality drilling locations2 • Strategic land acquisitions and ongoing delineation continue to expand opportunities • ~350 drilling locations across Cardium, Belly River and the Mannville group Ferrier: Multi Zone Drilling Inventory 3 9
Page 10
FERRIER: REDUCING CAPITAL COSTS Continuous Improvements Driving Lower Well Costs 10 2022 2023 2024 2025 1-Mile Wells 2-Mile Wells Drill, Complete, Equip & Tie-in (DCET) Capital • Faster drilling times • Multi-well drilling programs improving scale efficiencies • Optimized well designs and casing programs • Expanded use of plug-and-perf completions • Material reductions in both 1-mile and 2-mile costs since 2022 -26% 2022-2025 1-Mile DCET1,2 -23% 2022-2025 2-Mile DCET1,2 Continuous operational improvements in drilling and completion design and execution are lowering DCET capital costs in Ferrier. 1) DCET = Drill, Complete, Equip & Tie-in capital. 2) Based on average DCET costs per well for operated Ferrier wells.
Page 11
1) Non-Petrus payout estimates provided by Peters & Co. Limited. Estimates are based on August 1, 2025 price deck starting at US $66.37/bbl WTI and C $1.74/Mcf AECO, trending to US $63/bbl WTI and C $3.61/Mcf AECO in 2029, with an exchange rate of US $0.72–$0.74/CAD and Edmonton Par of C $80–88/bbl. Petrus Ferrier Cardium economics were calculated internally using the same pricing assumptions and methodology. 9 Months Payout ASSETS: FERRIER ECONOMICS – PAYOUTS Petrus locations highly competitive vs leading Canadian plays1 Petrus’ drilling locations have some of the highest economic returns in the Canadian energy sector. Generating results competing with the Clearwater and outperforming the Montney and Duvernay. 11 10 Months Payout
Page 12
• Petrus Land • Petrus Major Facilities NON-CORE ASSETS: THORSBY, ALBERTA Stable Funds Flow Generation • 1,003 boe/d₁ (66% Gas, 34% Oil/NGLs) • Low decline (3%) Glauc production • Strong, steady cash flow with little ongoing capital investment • Ownership and control of critical infrastructure • Concentrated, operated, high working interest • Third-party processing revenue 1) June 2026 average daily production and total liquids weighting . 12 Thorsby 16-36 Oil Battery Thorsby 05- 04 Oil Battery & Gas Plant Thorsby 15-22 Gas Plant Thorsby 02-13 Oil Battery Thorsby Glauc Unit No. 1 Thorsby 7-14 Gas Plant
Page 13
FOOTHILLS • Low decline gas and Cardium oil • 62% Gas, 38% Liquids₁ • Minimal capital investment • Funds flow generating asset NON-CORE ASSETS: FOOTHILLS & KAKWA Funds flow generating assets requiring limited resources KAKWA • Dunvegan oil production • Drilled first well in 2021 • Large land base (20.75 sections) • Potential for long-term growth 1) Based on June 2026 average production. 13
Page 14
DISCIPLINED GROWTH THROUGH COMMODITY CYCLES Track record of growing production and reserves through disciplined capital execution 1) 2026E represents internal company estimates based on the midpoint of the approved 2026 capital budget and guidance. 2) Proved developed producing reserves based on independent reserve reports prepared by InSite Petroleum Consultants Ltd. effective December 31, 2021, December 31, 2022, December 31, 2023, December 31, 2024, and December 31, 2025. Harmattan acquisition closed subsequent to December 31, 2025 and is not included in Petrus’ year- end reserves. Acquired PDP reserves are based on an independent reserves evaluation effective December 31, 2025 prepared by InSite Petroleum Consultants Ltd. 14 Capital investment adjusts with commodity cycles Growing production and increasing liquids weighting Growing proved developed producing reserves 11,698 17,809 18,638 17,472 23,314 2021 2022 2023 2024 2025 PDP (Mboe) Harmattan Acq. PDP (Mboe) PDP Reserves Volumes (Mboe)2 $88 $78 $50 $51 $63 $97 $87 $32 $49 $55 $5.04 $2.50 $1.38 $1.92 $2.50 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 2022 2023 2024 2025 2026E Funds Flow Capital Investment AECO ($/GJ) Capital Investment & Funds Flow ($MM) 1 2022 2023 2024 2025 2026E Gas Oil NGLs 7,606 10,300 9,382 9,371 11,500 Annual Production (boe/d) 1
Page 15
June 2022 +278% PRQ 4 January 2026 +110% PRQ 6 November 2022 AECO 5A +37% 5 November 2022 +232% PRQ 5 January 2026 -60% AECO 5A 6 June 2022 +69% AECO 5A 4 TORQUE TO GAS PRICE: SIGNIFICANT UPSIDE POTENTIAL Strong Relationship Between PRQ’s Share Price and Increases in Natural Gas Prices1 1) Chart represents the relative share price performance for Petrus and a group of peers relative to the change in AECO 5A natural gas price. The data represents daily changes in share prices and AECO 5A natural gas prices from January 4, 2022 through to January 2, 2026 and shows how each day’s price compares to the starting day of January 4, 2022. 2) Large cap peers, as defined by Petrus, include Tourmaline Oil Corp., Peyto Exploration & Development Corp. and ARC Resources Ltd. 3) Small cap peers, as defined by Petrus, include InPlay Oil Corp., Journey Energy Inc., Surge Energy Inc., and Yangarra Resources Ltd. 4) June 2022 changes represent the percentage change on June 7, 2022 compared to January 4, 2022. 5) November 2022 changes represent the percentage change on November 25, 2022 compared to January 4, 2022. 6) January 2026 changes represent the percentage change on January 2, 2026 compared to January 4, 2022. 15 Positioned to take advantage of the next constructive pricing cycle. 2 3 PRQ Initiates Dividend January 2024
Page 16
PEY PRQ ARX IPO RBY TOU LGN JOY YGR PNE CREATING VALUE: TOTAL RETURNS1 TO SHAREHOLDERS Combination of Share Price Appreciation and Dividends Paid Results in Total Returns Outpacing Most Peers2 1) Total returns represents the change in share price plus any dividends paid from January 1, 2024 to January 2, 2026. 2) Peers highlighted in the chart include Peyto Exploration Ltd., ARC Resources Ltd., InPlay Oil Corp., Tourmaline Oil Corp., Rubellite Energy, Logan Energy Corp., Journey Energy Inc., Yangarra Resources Ltd. and Pine Cliff Energy Inc. 16 • Primary goal is generating sustainable long-term cash flow to maximize value for shareholders • During 2024 & 2025 Petrus generated a 62% return for shareholders • Investing in highest-return projects that meet established return thresholds • Free funds flow will be used to return capital to shareholders • Will remain responsive to changing market conditions and ready to accelerate development +62%
Page 17
CREATING VALUE: NO HYPE. JUST RETURNS. How Petrus Stacks Up Against the Big Names on Total Returns1 1) Total returns represents the change in share price plus any dividends paid from January 2, 2025 to January 2, 2026. 17 74% 38% 35% 17% 13% 12% 10% 3% -7% Gold PRQ NVIDIA S&P 500 S&P/TSX Capped Energy Index Apple Inc. Berkshire Hathaway Inc. Amazon Bitcoin
Page 18
CONTACT US For more information: Ken Gray, President & CEO 403-930-0889 kgray@petrusresources.com Mathew Wong, CFO & VP Finance 587-349-5827 mwong@petrusresources.com Lindsay Hatcher, VP Commercial & Corporate Development 587-349-5823 lhatcher@petrusresources.com Suite 1110, 240-4th Ave SW Calgary, Alberta T2P 4H4 www.petrusresources.com 18
Page 19
APPENDIX Supplementary Information 19
Page 20
READER ADVISORY Certain information regarding Petrus Resources Ltd. ("Petrus", "our" or "we" or the "Company") set forth in this document may constitute forward-looking statements under applicable securities laws, including, but not limited to, the following: Petrus' business model, including planned activities by core area, anticipated consolidation opportunities, potential drilling locations and plans, potential waterflood plans and the expected benefits therefrom, the anticipated economics of certain plays based on various assumptions, the potential upside in certain assets, potential hedging gains, 2025 year end reserves, future operating expenses and well costs and other statements herein with respect to intended operational, business and other expected activities. In addition, information relating to reserves is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions, that the reserves described can be economically produced in the future. The forward-looking statements and information (collectively, “forward-looking information”) is based on certain key expectations and assumptions made by Petrus, including expectations and assumptions concerning: prevailing commodity prices and exchange rates (including those prevailing in Alberta); applicable royalty rates and tax laws; future well production rates and resource and reserve volumes; the timing of receipt of regulatory approvals; the performance of existing wells; the success obtained in drilling new wells (including exploration wells); the sufficiency of budgeted capital expenditures in carrying out planned activities; assumptions of costs associated with drilling and development plans; consistency of laws and regulation relating to the oil and gas industry; expectation that current pricing and incentive programs will continue to be in force as expected; the costs and availability of labour and services; the general stability of the economic and political environment in which Petrus operates; and the ability of Petrus to obtain financing on acceptable terms when and if needed. In addition, this document may contain forward-looking information attributed to third party industry sources. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These risks include, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, risks that future drilling will result in unsuccessful wells despite initial expectations being positive, risks that although exploration drilling may result in successful wells, any production from such wells is uneconomic, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, changes in Petrus' credit facilities, including its borrowing base, risk of defaults and other re-determinations, delays resulting from Petrus' inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations and royalty rates) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this document are made as at the date of this document and Petrus does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Although Petrus believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Petrus can give no assurances that they will prove to be correct. Petrus' actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Petrus will derive therefrom. The information contained in this presentation does not purport to be all-inclusive or to contain all information that a reader may require. Readers are encouraged to conduct their own analysis and reviews of the Company and of the information contained in this presentation. Without limitation, readers should consider the advice of their financial, legal, accounting, tax and other advisors and such other factors they consider appropriate in investigating and analyzing the Company. Barrels of Oil Equivalent - Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 thousand cubic feet (“mcf"): 1 barrel ("bbl") is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to the current price of natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. Analogous Information - Certain information contained herein is considered "analogous information" as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook and Petrus is unable to confirm whether such estimates have been prepared by a qualified reserves evaluator. In particular, this presentation describes increased recovery factors in a pool analogous to Petrus' Glauconite "A" Pool with respect to waterflood activities. Such information is not intended to be an estimate of Petrus' resources or projections of future results. In addition, such positive analogous information may not be applicable to Petrus or its properties. Such information has been presented to show the potential for enhanced recovery in certain of Petrus' areas of interest or areas analogous to Petrus' areas of interest. Such information is based on independent public data and public information received from other producers and Petrus has no way of verifying the accuracy of such information. Such information has been presented to help demonstrate the basis for Petrus' business plans and strategies. There is no certainty that such results will be achieved by Petrus and such information should not be construed as an estimate of future recovery rates or reserves or resources or future production levels. Well Economics - Certain information contained herein sets forth the well economics utilized by management of Petrus in analyzing various opportunities of Petrus. The presentation of such well economics does not represent an estimate of reserves or the net present value of such reserves. Such economics were prepared on the assumptions set forth herein and also make certain other assumptions with respect to initial production levels, the type of commodity that may be produced, commodity prices, well depths, capital expenditures that may be incurred in drilling, completing and in the tie-in of wells, operating costs related to the wells and royalties. The well economics are partially based on certain historic results received by Petrus and other producers in the area to date and certain production profiles based on area production and other assumptions as set forth, which may prove to be inaccurate. 20
Page 21
READER ADVISORY Capital costs to drill, complete and tie-in wells and operating costs in each area are also based on management's experience and not on historical data. In addition, such costs are based on management's estimates when the estimates were prepared and have not been escalated notwithstanding that certain wells are planned to be drilled in the future or that operating costs may increase in the future, including during the period that wells are projected to be drilled. Target volumes are volumes of oil and natural gas that management is targeting and in respect to which management is basing its decision to pursue the opportunity in a particular prospect. Actual reserves recovered from any prospect may be different than management's expectations utilized for planning purposes as provided herein and such difference may be material and would impact on the economics of each particular play. Initial Production Rates - Any references herein to production rates, test rates or initial production rates (including IP 30) are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. Readers are cautioned not to place reliance on such rates in calculating the aggregate production for Petrus. Initial production or test rates may be estimated based on other third party estimates or limited data available at this time. Well-flow test result data should be considered to be preliminary until a pressure transient analysis and/or well-test interpretation has been carried out. In all cases herein, initial production or test results are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons. Drilling Locations - This document discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the report prepared by Insite Petroleum Consultants Ltd. effective December 31, 2025 evaluating the crude oil, natural gas liquids and natural gas and future net production revenues attributable to the properties of Petrus and account for drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on Petrus' prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have attributed reserves. Unbooked locations have been identified by management as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that Petrus will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves or production. The drilling locations on which we actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been derisked by drilling existing wells in relative close proximity to such unbooked drilling locations, some of other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves or production. Non-GAAP Measures - This document contains terms commonly used in the oil and natural gas industry, such as funds flow, debt-adjusted share, operating netback and net debt. These terms do not have a standardized meaning under International Financial Reporting Standards and may not be comparable to similar measures presented by other companies. “funds flow" should not be considered an alternative to, or more meaningful than, funds from operating activities as determined in accordance with International Financial Reporting Standards as an indicator of Petrus' performance. "funds flow" represents funds from operating activities prior to changes in non-cash working capital, transaction costs and decommissioning provision expenditures incurred. "Net debt" is long term debt, capital lease obligations, bank debt, working capital deficiency and income taxes (but specifically excluding future income taxes and risk management assets and liabilities). "Operating netbacks" is a benchmark used in the oil and gas industry to measure the contribution of crude oil and natural gas sales after deducting royalties and operating costs. Definitions: boe = barrel of oil equivalent (6:1) boe/d = boe per day mmcf/d = mmcubic feet per day WI = working interest mm = million Continued 21