Petrus Resources (OTCQX:PTRUF) only needs to generate a modest total netback of C$1/boe to justify a higher stock price. Considering the low-cost structure, achieving such a result over the long term isn't difficult.
But the company is facing a few challenges: high leverage, short-term maturities, and full exposure to the Canadian oil and gas prices.
Before getting into the details of the interesting risk/reward potential, let's have a look at the recent results.
Source: Petrus Resources
Note: All the numbers in the article are in Canadian dollars unless otherwise noted.
Q4 Results
During