Petrus Resources (TSE:PRQ) reported record average production in the third quarter of 2026, as its Harmattan acquisition and new wells contributed to growth. Executives said they expect debt to decline by year-end as funds flow exceeds capital spending.
Average production reached 12,152 barrels of oil equivalent per day in the quarter, while September production was 36% higher than in January, Chief Executive Officer Ken Gray said on the company’s earnings call. Quarterly oil production averaged 2,007 barrels per day, up 32% from a year earlier.
Gray said operating netback rose 96% from the third quarter of 2025 to CAD 22.9 million, reflecting increased production and stronger pricing. Funds flow increased 26% to CAD 16.3 million, although hedging limited the increase, he said.
Harmattan and New Wells Drive Growth
The Harmattan acquisition, completed in February, contributed a full quarter of production during the third quarter. Petrus also drilled its first two Cardium oil wells at Harmattan, which began producing midway through the quarter, Gray said.
Asked by ATC analyst Richard Toparsky about the return on the acquisition, Gray said it was generating a “pretty good return.” He noted that the acquisition added oil production and that oil prices rose shortly after the transaction. Debt used to finance the deal accounted for the largest portion of the company’s increase in debt, he said.
Since the third quarter ended, Petrus has brought its joint venture Glock wells on production. Gray described early results as “very strong” and said the wells were being choked because existing infrastructure was not built to handle their peak rates.
The Glock wells represent the third zone Petrus has drilled in the Ferrier area over roughly the past year, Gray said. The company plans to start drilling in December, accelerating work on oil locations in both Ferrier and Harmattan.
Hedging and Debt Outlook
During the question-and-answer session, Toparsky asked why funds flow had not increased as much as production and whether a lower operating netback from the second to the third quarter was temporary. Gray said hedges had dampened the gains reflected in funds flow and corporate netback.
Gray said he expects operating improvements to be reflected more fully in subsequent quarters as hedging moves to reflect more current pricing.
Toparsky noted that net debt had increased to CAD 88 million in the third quarter from CAD 62.5 million at the end of 2025. Chief Financial Officer Mathew Wong said Petrus expects net debt to fall to approximately CAD 80 million by the end of 2026, primarily through cash generated from operations.
Wong said remaining fourth-quarter capital spending is expected to be much lower than in the third quarter, which he described as a major period for internal capital spending. Asked whether the December drilling program would require additional borrowing, he said the company expects fourth-quarter funds flow to be significantly higher than capital spending, allowing it to pay down debt.
About Petrus Resources (TSE:PRQ)
Petrus Resources Ltd is a company that is engaged in the acquisition, development, exploration, and exploitation of energy business assets. The company receives maximum revenue from oil and natural gas. The company’s core operating areas are Ferrier, Central Alberta, and the Rocky Mountain foothills.
