Ladies and gentlemen, thank you for standing by. Welcome to Petrus Resources Year-End 2023 Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you would need to press star one one on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Ken Gray, Chief Executive Officer. Please go ahead.
Hello and welcome to Petrus Resources Conference Call to discuss our 2023 year-end results, give you a quick update on current activities, and answer any questions you may have. This is the first time we are doing this, so we appreciate you calling in and hope you find it useful. My name is Ken Gray, and I'm the CEO of Petrus. I'm joined here by our CFO Mathew Wong, COO Matt Skanderup, and VP Commercial and Corporate Development Lindsay Hatcher. So let's get right to it. 2023 was a challenging year as oil and natural gas prices retreated from the post-COVID and Ukraine war-induced highs in 2022. We had ambitious capital plans for 2023 and started drilling right at the start of the year, finishing seven wells by mid-March, with three of those completed and put on production in early March.
In light of the rapidly retreating prices, we elected to suspend our capital program and reevaluate our capital strategy. We quickly pivoted from an aggressive growth strategy to a more future-oriented strategy with investments in infrastructure, in particular our North Ferrier pipeline connecting our North Ferrier lands to our 100% owned and operated gas plant, and drilling some key wells in North Ferrier that tied into the pipeline and allowed us to both acquire additional working interest in highly prospective lands and generate gathering and processing revenue from the area. The pipeline was completed in December, and the North Ferrier wells drilled in the second half of 2023 were put on production right at the end of the year. Highlights for the year include a second year in a row of significant production growth, averaging 10,301 boe per day, up 35% from the 7,604 boe per day in 2022.
We generated strong cash flow of CAD 78 million, which was down only 11% from 2022 despite prices being down almost 40%. Increased production plus lower cash costs kept our cash flow strong. Petrus has been building towards a return of capital model, reducing and restructuring our debt in 2022 and growing our cash flow. We were pleased to be in a position to declare a special dividend of CAD 0.03 per share in Q4 2023 and then initiate a regular dividend starting in January 2024 of CAD 0.01 per share, which at our current price provides a yield of about 9%. That we were able to introduce a regular dividend at this time is a testament to the strength of our business and ability to generate strong cash flow even at low prices. Looking forward, we announced our 2024 budget guidance in February.
The plan is to drill to maintain production and protect our dividend. Q1 2024 is almost in the books. We've drilled 3.00 net wells and participated in another 2.3 net wells in Q1. None of the wells are on production as of yet. We've deferred the completions on our operated wells until Q2, while the non-operated wells are currently being completed. We have additional drilling planned for later in the year with lots of flexibility, so we'll continue to monitor market conditions and resume capital spending when it makes sense. There is a lot of optimism with regards to pricing later this year and next year. Oil prices are already ticking up, and gas futures are much stronger for next winter in 2025 than where we are today. Petrus is well positioned to take advantage. With that, I'll open the floor to questions.
Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your questions, please press star one one again. Please stand by while we compile the Q&A roster. One moment, please, for the first question.
One of the things that.
Okay. The first question comes from Brian Davis. Your line is now open.
Hey, Ken. Brian Davis here.
Hi, Brian.
How we doing?
Good. How are you?
Excellent. Hey, just one of the questions kind of reviewed everything that you guys sent out last night. One thing that kind of popped into my head is it looks a little tight on that dividend. I think you said you're going to have CAD 15 million-CAD 20 million of free cash flow for next year, and you're pretty close at CAD 14 million for the dividend plus your automatic buyback. How confident are you guys that you can keep that dividend in place?
Yeah. Thanks, Brian. No, you're right. Current pricing and that is challenging, but we're quite confident that we'll pay the dividend throughout this year and that we can sustain that dividend. We have a lot of flexibility in our capital spending. We anticipate CAD 40 million-CAD 50 million of capital spending on drilling this year, but we can certainly reduce that if we need to, and we're prepared to do that if we need to in order to pay the dividend. So yeah, we see no real issues. We've run our budget models at various pricing scenarios, and we're quite confident that the dividend is sustainable.
Okay. Good.
As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. I show no further questions in the queue at this time. This will conclude the conference call for today. Want to thank you for your participation. You may now disconnect.