PetroTal Corp. - Q1 2024 Operations and Corporate Updates
11/04/2024 07:00
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RNS Number : 2452K PetroTal Corp. 11 April 2024
PetroTal Announces Q1 2024 Operations and Corporate Updates
23% increase in production Quarter over Quarter, to 18,518 bopd
Unrestricted cash liquidity of $63 million at March 31, 2024
Calgary, AB and Houston, TX - April 11, 2024-PetroTal Corp. ("PetroTal" or the
"Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) announces the following
operational, financial and corporate updates. All amounts are in US dollars
unless stated otherwise.
Q1 2024 Production
PetroTal achieved average production of 18,518 barrels of oil per day ("bopd")
in Q1 2024, in line with guidance. This represents an increase of
approximately 23% and 54% from Q4 2023 and Q1 2023, respectively. Production
during the past 30 days has averaged approximately 20,500 bopd.
Operations
During Q1 2024, following favorable river levels, the Company delivered its
planned sales through the Brazil and Iquitos routes. PetroTal's recently
drilled 17H well commenced production on March 1, 2024, and has produced at a
rate of approximately 4,000 bopd during its first 30 days online. Since the
electro submersible pump was activated two weeks ago, the well has delivered a
rate of approximately 4,500 bopd, in line with the Company's expectations.
Currently, PetroTal is continuing with its 2024 development program, and is
drilling well 18H, which is expected to commence production in May 2024.
Erosion Control Update
The Company is progressing its preventive erosion control program aimed at
protecting the Bretana oilfield and nearby community. PetroTal expects to
commence project construction in mid to late Q3 2024; while permitting is
ongoing, detailed engineering is being finalized, and long lead items are
being procured.
Cash and Liquidity Update
PetroTal exited Q1 2024 in a strong position with approximately $63 million of
unrestricted cash and $22 million of restricted cash for a total of $85
million at March 31, 2024. Restricted cash includes amounts reserved for the
social trust funds to be deposited at a later date. Cash liquidity decreased
from year end 2023 levels as a result of increased capital expenditures from
drilling program commencement in Q1 2024, March 15, 2024 dividend distribution
and revenue payments received in early April. During Q1 2024, the Company
purchased 4.7 million shares at an average price of US$0.58/share pursuant to
the share buyback program, and paid dividends of $18.4 million (US$0.02/share)
on March 15, 2024, related to Q4 2023 operations. At the end of Q1 2024,
accounts receivable and accounts payable of approximately $111.7 million and
$73.6 million (due within 50 days) respectively, were outstanding.
Q1 2024 results webcast link for May 9, 2024
PetroTal will host a webcast for its Q1 2024 results on May 9, 2024 at 9am CT
(Houston), 3pm BST (London). Please see the link below to register.
https://stream.brrmedia.co.uk/broadcast/660bc6a92eae5d4dcf2e6319
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer,
commented:
"The Company achieved its strongest annual start to a year in PetroTal's
history generating quarterly average production of over 18,500 bopd. Q1 2024
liquidity was as expected with the Company receiving an average oil price
above its 2024 guidance of $77/bbl Brent, bolstering Q1 2024 financial and
operational metrics.
The two recently completed horizontal wells bring our well count to 18 oil
producers, setting the stage for record first half and annual production.
This will allow us to continue returning capital to our shareholders while
growing the Company."
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSX: TAL, AIM: PTAL and OTCQX:
PTALF) oil and gas development and production Company domiciled in Calgary,
Alberta, focused on the development of oil assets in Peru. PetroTal's
flagship asset is its 100% working interest in the Bretana oil field in Peru's
Block 95 where oil production was initiated in June 2018. In early 2022,
PetroTal became the largest crude oil producer in Peru. The Company's
management team has significant experience in developing and exploring for oil
in Peru and is led by a Board of Directors that is focused on safely and cost
effectively developing the Bretana oil field. It is actively building new
initiatives to champion community sensitive energy production, benefiting all
stakeholders.
For further information, please see the Company's website at
www.petrotal-corp.com (http://www.petrotal-corp.com) , the Company's filed
documents at www.sedar.com (http://www.sedar.com) , or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 20 7770 6424
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
T: +44 (0) 20 7710 7600
Peel Hunt LLP (Joint Broker)
Richard Crichton / David McKeown / Georgia Langoulant
T: +44 (0) 20 7418 8900
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains certain statements
that may be deemed to be forward-looking statements. Such statements relate to
possible future events, including, but not limited to, oil production levels
and guidance, including the ramp up and resumption of shut-in production. All
statements other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always, identified
by the use of words such as "anticipate", "believe", "expect", "plan",
"estimate", "potential", "will", "should", "continue", "may", "objective" and
similar expressions. Without limitation, this press release contains
forward-looking statements pertaining to: the appointment of an additional
director during the forthcoming year; expectations surrounding disrupted barge
logistics and the consequences in respect thereof, including in relation to
the Company's ability to maintain production at about 20,000 bopd; effects of
the illegal blockade removal and release of oil convoys in respect of overall
safety in the Loreto area; PetroTal's recommendations and expectations
surrounding furniture negotiations with AIDECOBAP and future social fund
allocation decisions. In addition, statements relating to expected production,
reserves, recovery, replacement, costs and valuation are deemed to be
forward-looking statements as they involve the implied assessment, based on
certain estimates and assumptions that the reserves described can be
profitably produced in the future. The forward-looking statements are based on
certain key expectations and assumptions made by the Company, including, but
not limited to, expectations and assumptions concerning the ability of
existing infrastructure to deliver production and the anticipated capital
expenditures associated therewith, the ability of government groups to
effectively achieve objectives in respect of reducing social conflict and
collaborating towards continued investment in the energy sector, including
pursuant to Acta, reservoir characteristics, recovery factor, exploration
upside, prevailing commodity prices and the actual prices received for
PetroTal's products, including pursuant to hedging arrangements, the
availability and performance of drilling rigs, facilities, pipelines, other
oilfield services and skilled labour, royalty regimes and exchange rates, the
impact of inflation on costs, the application of regulatory and licensing
requirements, the accuracy of PetroTal's geological interpretation of its
drilling and land opportunities, current legislation, receipt of required
regulatory approval, the success of future drilling and development
activities, the performance of new wells, future river water levels, the
Company's growth strategy, general economic conditions and availability of
required equipment and services. Although the Company 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 the Company 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, 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; and
health, safety and environmental risks), commodity price volatility, price
differentials and the actual prices received for products, exchange rate
fluctuations, legal, political and economic instability in Peru, access to
transportation routes and markets for the Company's production, changes in
legislation affecting the oil and gas industry and uncertainties resulting
from potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; changes in the financial
landscape both domestically and abroad, including volatility in the stock
market and financial system; and wars (including Russia's war in Ukraine).
Please refer to the risk factors identified in the Company's most recent AIF
and MD&A which are available on SEDAR at www.sedar.com. The
forward-looking statements contained in this press release are made as of the
date hereof and the Company 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.
OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or
sales in this press release mean "heavy crude oil" as defined in NI 51-101.
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