Petrus Resources Ltd. Announces Fourth Quarter and Year End 2013 Results; Record Production and Cash Flow

Petrus Resources Ltd. ("Petrus" or the "Company") is pleased to report its
operating and financial results for the fourth quarter and the fiscal year of
2013. Petrus began 2013, its second full year of operations, with production of
2,853 boe per day (42% oil and liquids) and exited the year at a record 4,052
boe per day (46% oil and liquids), a 42% increase. The Company set new records
for production, cash flow and reserves per share in 2013. Other highlights
include:




--  Production per share up 21% in 2013. Average annual production was 3,206
    boe per day in 2013, up from 1,880 boe per day in 2012. Fourth quarter
    production averaged 3,658 boe per day, up from 2,735 boe per day in the
    same period of 2012, an increase of 34% per share. New Montney and
    Cardium oil production generated a 44% increase in oil and natural gas
    liquids production from the first quarter to the fourth quarter of 2013,
    driving strong growth in cash flow per share. 

--  Cash flow per share up 77% in 2013. Petrus generated $31.1 million in
    cash flow from operations during the year, a two-and-a-half-fold
    increase over the $12.5 million generated in 2012. Cash flow from
    operations was $9.2 million in the fourth quarter, up from $6.3 million
    in the same period last year, an increase of 39% on a per share basis. 
--  Operating netback up 35% in 2013, rising from $21.29 per boe in 2012 to
    $28.74 per boe in 2013. The Company's operating netback in the fourth
    quarter was $31.04. 

--  Reserves per share up 21% in 2013. Proved plus probable reserves
    increased from 12.3 mmboe in 2012 to 14.9 mmboe in 2013. The Company
    replaced 3.2 times annual production at an all-in annual Finding,
    Development and Acquisition ("FD&A") cost of $21.57 per boe including
    future development capital ("FDC") for the proved plus probable
    category. 

--  Petrus ended 2013 with $228.1 million of reserve value on a proved plus
    probable basis, discounted at 10%, 1.6 times the prior year total. On a
    per share basis, adjusted for debt, the proved plus probable reserve
    value was up 35%. 

--  Over the twelve month period ended December 31, 2013, Petrus invested
    $58.9 million in exploration and acquisition activity, up from $52.2
    million in 2012. 

--  Petrus had 86.4 million common shares outstanding at December 31, 2013
    and access to a $60.0 million credit facility. The Company ended the
    year with net debt of $22.3 million, or 0.6x annualized fourth quarter
    cash flow. The debt-adjusted growth per share metrics year-over-year are
    26% for exit production, 55% for cash flow and 7% for proved plus
    probable reserves. 

--  At year end Petrus had 133,339 net acres of undeveloped land, with a
    large inventory of oil and gas drilling locations in each of its core
    operating areas. 

--  Subsequent to December 31, 2013 Petrus announced the acquisition of oil
    and natural gas assets in the foothills of Alberta; included in this
    acquisition were 875 boe per day of production and 36,307 net acres of
    undeveloped land. The acquisition was made for total cash consideration
    of approximately $19.1 million (before post-closing adjustments) and
    closed February 28, 2014. Concurrently the Company's borrowing base
    increased to $90 million, including a $10 million development line. 

--  The Petrus Board of Directors approved a base capital budget of $74
    million for 2014, excluding acquisitions. The capital budget provides
    for the drilling of 36 gross (24 net) wells, with approximately $45
    million directed at foothills development and $29 million directed
    toward the Peace River area. Concurrent with closing of the acquisition
    of foothills assets the capital budget increased to $100 million. The
    capital budget will be funded through cash flow and available credit
    facilities. 



SELECTED FINANCIAL INFORMATION



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                                  Twelve months Twelve months  Three months 
                                          ended         ended         ended 
(000s) except per boe amounts     Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2013 
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OPERATIONS                                                                  
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Average Production                                                          
  Natural gas (mcf/d)                    10,314         7,490        10,848 
  Oil (bbl/d)                             1,417           585         1,778 
  NGLs (bbl/d)                               70            47            72 
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  Total (boe/d)                           3,206         1,880         3,658 
  Total (boe)                         1,170,141       686,200       336,539 
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Natural gas sales weighting                  54%           66%           49%
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Exit production (boe/d)                   4,052         2,853         4,052 
Exit natural gas sales weighting             54%           58%           54%
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Realized Sales Prices                                                       
  Natural gas ($/mcf)                      3.30          2.61          3.78 
  Oil ($/bbl)                             83.95         79.07         77.83 
  NGLs ($/bbl)                            61.87         61.16         65.17 
  Total ($/boe)                           49.08         36.53         50.33 
  Hedging gain (loss) ($/boe)             (1.12)         0.82         (1.21)
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Operating Netback ($/boe)                                                   
  Effective price                         47.96         37.35         49.12 
  Royalty income (1)                       0.53          0.54          0.46 
  Royalty expense (1)                     (7.66)        (5.10)        (7.05)
  Operating expense                      (10.26)       (10.32)        (9.88)
  Transportation expense                  (1.83)        (1.18)        (1.61)
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Operating netback (3)($/boe)              28.74         21.29         31.04 
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  G & A expense                           (1.59)        (2.74)        (1.73)
  Net interest expense (2)                (0.59)        (0.38)        (0.75)
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Corporate netback (3)($/boe)              26.56         18.18         28.56 
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FINANCIAL ($000s except per share)                                          
  Oil and natural gas revenue (1)        58,055        25,511        17,094 
  Cash flow from operations (3)          31,091        12,513         9,220 
  Cash flow from operations per                                             
   share (3)                               0.36          0.20          0.11 
  Net income (loss)                       8,141           431         2,086 
  Net income (loss) per share              0.09          0.01          0.02 
  Capital expenditures                   58,851        52,159         9,736 
  Net acquisitions (dispositions)        (1,701)       59,630             - 
  Common shares outstanding              86,377        86,276        86,377 
  Weighted average shares                86,343        61,377        86,377 
As at quarter end ($000s)                                                   
  Working capital (deficit)             (22,288)        2,793       (22,288)
  Bank debt outstanding                  23,380             -        23,380 
  Bank debt available                    36,620        40,000        36,620 
  Shareholder's equity                  156,002       145,782       156,002 
  Total assets                          211,952       181,976       211,952 
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                                   Three months  Three months  Three months 
                                          ended         ended         ended 
                                      Sept. 30,                             
(000s) except per boe amounts              2013 June 30, 2013 Mar. 31, 2013 
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OPERATIONS                                                                  
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Average Production                                                          
  Natural gas (mcf/d)                    10,405         9,681        10,315 
  Oil (bbl/d)                             1,373         1,300         1,212 
  NGLs (bbl/d)                               54            76            76 
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  Total (boe/d)                           3,162         2,990         3,007 
  Total (boe)                           290,877       272,090       270,638 
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Natural gas sales weighting                  55%           54%           57%
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Exit production (boe/d)                   3,235         3,065         3,071 
Exit natural gas sales weighting             53%           53%           53%
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Realized Sales Prices                                                       
  Natural gas ($/mcf)                      2.54          3.60          3.29 
  Oil ($/bbl)                             93.93         88.13         77.02 
  NGLs ($/bbl)                            67.20         45.37         71.55 
  Total ($/boe)                           50.31         51.14         44.15 
  Hedging gain (loss) ($/boe)             (1.46)        (0.55)        (1.21)
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Operating Netback ($/boe)                                                   
  Effective price                         48.85         50.59         42.94 
  Royalty income (1)                       0.56          0.57          0.55 
  Royalty expense (1)                     (8.02)        (7.39)        (8.31)
  Operating expense                       (8.46)       (10.12)       (11.38)
  Transportation expense                  (2.19)        (1.71)        (1.82)
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Operating netback (3)($/boe)              30.74         31.94         21.98 
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  G & A expense                           (1.96)        (1.57)        (1.02)
  Net interest expense (2)                (0.74)        (0.79)        (0.02)
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Corporate netback (3)($/boe)              28.04         29.58         20.94 
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FINANCIAL ($000s except per share)                                          
  Oil and natural gas revenue (1)        14,741        14,093        12,128 
  Cash flow from operations (3)           8,157         8,048         5,666 
  Cash flow from operations per                                             
   share (3)                               0.09          0.09          0.06 
  Net income (loss)                       2,171         4,010            47 
  Net income (loss) per share              0.03          0.05          0.01 
  Capital expenditures                   14,166        15,416        19,533 
  Net acquisitions (dispositions)             -        (1,701)            - 
  Common shares outstanding              86,377        86,362        86,276 
  Weighted average shares                86,369        86,349        86,276 
As at quarter end ($000s)                                                   
  Working capital (deficit)             (21,558)      (15,756)      (10,551)
  Bank debt outstanding                  17,966        20,968        11,304 
  Bank debt available                    42,034        39,032        28,696 
  Shareholder's equity                  153,857       151,304       146,432 
  Total assets                          201,208       199,508       184,139 
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(1)  The Company re-classified gross overriding royalty expense from oil and
     natural gas revenue to royalty expenses in the Statement of Net Income 
     and Comprehensive Income. The comparative information has been re-     
     classified to conform to current presentation.                         
(2)  Interest expense is presented net of interest income.                  
(3)  Non-GAAP measures defined on page 7 of the MD&A for the period ended   
     December 31, 2013.                                                     



OPERATIONS UPDATE 

Foothills 

Drilling success continues to add new oil weighted production in the foothills.
Average production in the fourth quarter of 2013 from the Cordel area increased
approximately 538 boe per day from the third quarter of 2013. Three successful
light oil wells were drilled in the fourth quarter of 2013. The last well, in
which Petrus has a 25% working interest, has delivered the highest initial
production rate from an oil well at Cordel to date, with gross production
averaging 1,420 boe per day (90% oil) over a 30 day period in January and
February. The sales increase from the prior quarter is also due to the
completion of permanent production facilities in the fourth quarter. These
facilities enabled the multi-well pad drilled earlier in 2013 to produce at near
full rates for the fourth quarter. 


The foothills asset acquisition added 875 boe per day (94% natural gas). The
base purchase price of $22.9 million was reduced to net cash consideration of
$19.1 million, as $2.6 million was received due to exercise of a third party
ROFR on a minor facility working interest in addition to purchase price
adjustments related to the interim period. The acquisition was funded using
available credit facilities and closed February 28, 2014. The acquisition
provides Petrus with drilling upside at current commodity prices and increased
working interest on near term oil drilling opportunities at Brown Creek where
Petrus plans to resume drilling in the summer of 2014. The Company has
identified additional drilling locations targeting various reservoirs in other
strike areas, as well as reactivation opportunities.


Peace River 

During the fourth quarter Petrus finished completions and tie-in of the six
wells drilled in the summer of 2013. Two of these wells are water disposal
wells. New Montney oil wells produced a combined total of approximately 100 boe
per day (90% light oil) once brought onto production in December. 


During the fourth quarter Petrus completed a battery with water disposal at
Tangent North and the system is now operational. A second disposal system at
Tangent South was completed at the end of the first quarter of 2014. Both
batteries are expected to significantly decrease operating costs, increase
runtime and allow for waterflood, which the Company believes will ultimately
increase Montney oil recoveries. Petrus has made an application to the
provincial regulator for a pilot waterflood at Tangent North which, if approved,
is expected to commence in the second half of 2014. 


Petrus resumed drilling in Tangent in January with a seven well program
targeting oil in the Montney formation. Two of the wells had test rates over a
32 hour period in excess of 200 bbl per day of oil with lower water cuts than
expected. These wells will be brought on production over the summer of 2014
dependent on weather and surface conditions.


ANNUAL GENERAL MEETING 

The Company's Annual General Meeting will be held at the Jamieson Place
Conference Centre, 3rd floor, 308-4th Ave SW Calgary, Alberta, on Tuesday June
3, 2014 at 9:00 a.m. (Calgary time). The Information Circular and Annual Report
for 2013 will be available on the Company's website, www.petrusresources.com.


ABOUT PETRUS 

Petrus is a private Canadian oil and gas company focused on property
exploitation, strategic acquisitions and risk-managed exploration in Alberta.
Petrus is a return-driven company that is focused on delivering per share
growth. 


READER ADVISORIES 

This press release contains forward-looking statements. More particularly, this
press release contains statements concerning Petrus' commodity weighting, plans
related to drilling and other operations, commodity focus, commodity pricing,
drilling locations, production rates, the expected ability of Petrus to execute
on its exploration and development program and Petrus' anticipated production
(both in terms of quantity and raw attributes) cash flow, operating netbacks,
planned operations and the timing thereof, evaluation of completed operations,
capital budget and capital expenditure program, the availability of
opportunities and other similar matters. The forward-looking statements
contained in this document are based on certain key expectations and assumptions
made by Petrus, including: (i) with respect to capital expenditures, generally,
and at particular locations, the availability of adequate and secure sources of
funding for Petrus' proposed capital expenditure program and the availability of
appropriate opportunities to deploy capital; (ii) with respect to drilling
plans, the availability of drilling rigs, expectations and assumptions
concerning the success of future drilling and development activities and
prevailing commodity prices; (iii) with respect to Petrus' ability to execute on
its exploration and development program, the performance of Petrus' personnel,
the availability of capital and prevailing commodity prices; and (iv) with
respect to anticipated production, the ability to drill and operate wells on an
economic basis, the performance of new and existing wells and accounting risks
typically associated with oil and gas exploration and production; (v) oil and
gas prices; (vi) currency exchange rates; (vii) royalty rates; (viii) operating
costs; (ix) transportation costs; and (x) the availability of opportunities to
deploy capital effectively. 


Although Petrus believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Petrus can give no assurance
that they will prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not
limited to, the failure to obtain necessary regulatory approvals, risks
associated with the oil and gas industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the uncertainty
of reserve estimates; the uncertainty of estimates and projections relating to
production, costs and expenses; health, safety and environmental risks;
commodity price and exchange rate fluctuations; and uncertainties resulting from
potential delays or changes in plans with respect to exploration or development
projects or capital expenditures). Readers are cautioned that the foregoing list
is not exhaustive of all possible risks and uncertainties. 


The forward-looking statements contained in this document are made as of the
date hereof and Petrus undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise.  


Any references in this news release to initial, early and/or test or
production/performance rates or data related thereto are useful in confirming
the presence of hydrocarbons, however, such rates or data are not determinative
of the rates at which such wells will continue production and decline
thereafter. While encouraging, readers are cautioned not to place reliance on
such rates in calculating the aggregate production for the Company. Such rates
may be estimated based on other third party estimates or limited data available
at this time. In all cases in this press release such rates not necessarily
indicative of long-term performance of the relevant well or fields or of
ultimate recovery of hydrocarbons. 


The term barrels of oil equivalent ("boe") may be misleading, particularly if
used in isolation. A boe conversion ratio of six thousand cubic feet of natural
gas to one boe (6 mcf/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. All boe conversions in this report are derived from
converting gas to oil in the ratio of six thousand cubic feet of gas to one
barrel of oil. Given that the value ratio based on the current price of crude
oil as compared to 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. The forward-looking statements contained in this
document are made as of the date hereof and Petrus undertakes no obligation to
update publicly or revise any forward-looking statements or information, whether
as a result of new information, future events or otherwise, unless so required
by applicable securities laws. 


"Funds from operations" should not be considered an alternative to, or more
meaningful than, cash flow from operating activities as determined in accordance
with International Financial Reporting Standards as an indicator of Petrus'
performance. "Funds from operations" represents cash flow from operating
activities prior to changes in non-cash working capital, transaction costs and
decommissioning provision expenditures incurred. Petrus also presents funds from
operations per share whereby per share amounts are calculated using weighted
average shares outstanding consistent with the calculation of earnings per
share.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Kevin Adair, P.Eng.
President and CEO
403-930-0888
[e-mail]