On December 2, 2018 the Alberta government announced a production curtailment mandate of 325,000 boe/d of Alberta crude oil production effective January 1, 2019. In February, the Alberta government announced plans to transport 120,000 boe/d via rail by 2020. These measures were intended to help alleviate current take away capacity constraints impacting Alberta producers and to reduce storage levels. The temporary production reduction applies to all operators in Alberta producing in excess of 10,000 barrels per day of oil production. Petrus’ oil production is within the 10,000 barrels per day and therefore the Company is exempt from reducing production. As a result of these measures, the differential for Western Canadian light oil prices has tightened significantly.
