Petrus Resources Ltd. announced production results for the year 2016. The company announced that the 2016 drilling program was concentrated in the Ferrier area targeting Cardium liquids rich natural gas. Three gross (1.2 net) of the final four gross (1.6 net) wells in the program are now on production. With the addition of these new wells, Petrus' January monthly production is expected to be approximately 9,000 boe/d. The final well in the program is currently being completed and is expected to be on production by early February. Based on the company's year-end production and estimated 2016 capital expenditures (excluding acquisitions and divestitures) Petrus added production at a cost of approximately $14,000 per flowing boe/d. Using historic data and estimated field production, the company estimates its corporate base decline production rate to be approximately 28%. Since the acquisition of Arriva Energy Inc. on September 9, 2014, Petrus has drilled 15 wells in the Ferrier area and participated as a working interest partner in 5 additional wells. In that same period, the Company has increased net production in the Ferrier area from approximately 1,000 boe/d to over 5,000 boe/d.

The company's board of directors has approved a $50 to $60 million capital budget for 2017. Based on the economics and repeatable results characteristic of the Ferrier Cardium play, 2017 capital is expected to be directed primarily to the development of the company's Ferrier assets. The program is expected to include drilling 16 gross (11.7 net) Cardium wells at Ferrier. Utilization of pad drilling from locations in close proximity to existing Petrus infrastructure is expected to further improve capital efficiencies. The program also provides for investment in facilities; the processing and compression capability of the Ferrier gas plant is expected to be doubled to reach a capacity of approximately 60 mmcf/d by the fourth quarter of 2017. Capital will also be allocated to expansion of the Ferrier gathering system to tie in additional volume to Petrus' Ferrier gas plant for processing. The 2017 capital budget is expected to add net production at a cost of approximately $15,000 per flowing boe/d. Petrus expects the 2017 capital program will increase December 2016 field estimated production of 8,572 boe/d by approximately 12 to 18% by year-end 2017 to 9,600 to 10,200 boe/d, based on anticipated service costs, activity levels, an estimated 28% base decline rate and current capital structure. The 2017 capital program is expected to be funded through cash flow and working capital.

The company also announced three executive appointments. Mr. Brett Booth has been appointed Vice President Land, Mr. Marcus Schlegel has been appointed Vice President Engineering and Mr. Ross Keilly has been appointed Vice President Exploration. The three executives previously held senior positions with Petrus and have demonstrated significant leadership and commitment to the organization.