PetroTal Corp. - Q2 2023 Financial and Operating Results
08/08/2023 07:00
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RNS Number : 6273I PetroTal Corp. 08 August 2023
PetroTal Announces Q2 2023 Financial and Operating Results
Record Q2 2023 production of 19,031 bopd (56% growth over Q1 2023)
Record Q2 2023 sales of 18,483 bopd (46% growth over Q1 2023)
60 days of production above 20,000 bopd in Q2 2023 and a quarter exit rate of
21,700 bopd
Calgary, AB and Houston, TX - August 8, 2023-PetroTal Corp. ("PetroTal" or the
"Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to report its
operating and financial results for the three and six months ended June 30,
2023 ("Q2").
Selected financial and operational information is outlined below and should be
read in conjunction with the Company's unaudited consolidated financial
statements and management's discussion and analysis ("MD&A") for the three
and six months ended June 30, 2023, which are available on SEDAR at
www.sedar.com and on the Company's website at www.PetroTal‐Corp.com. All
amounts herein are in United States dollars unless otherwise stated.
Key Selected Highlights
· Achieved record average quarterly sales of 18,483 barrels ("bbls") of
oil per day ("bopd"), up 46% from the first quarter ("Q1") 2023;
· Produced a record 19,031 bopd in the quarter, up 56% from Q1 2023.
During the quarter the Company posted 60 days with production over 20,000
bopd;
· Exited the quarter in a strong cash position with $92.6 million in
total cash ($17.3 million restricted), up 29% from end of Q1 2023;
· As a result of excellent Q2 2023 performance, the Company will
declare and pay in Q3 2023, a cash dividend of US$0.025 per common share,
which includes the recurring US$0.015 per common share amount, plus an amount
for a minimum liquidity sweep of US$0.01 per common share;
· Exported oil sales through Brazil averaged 513,000 bbls per month.
In April 2023 the Company had exported oil sales of approximately 590,000
barrels, that combined with Iquitos refinery deliveries represented total
realized oil sales of 630,462 bbls for the month;
· Commenced drilling well 15H on April 11, 2023, with first oil
production in early June 2023, ahead of schedule. The well produced at an
average of 7,920 bopd for the last 19 days in June 2023 and has averaged 7,140
bopd for the 30 day period from June 12, 2023 to July 11, 2023, prior to the
start of the dry season;
· Generated significant EBITDA and Free Funds Flow of $70.0 million
($41.63/bbl) and $37.7 million ($22.41/bbl) respectively, compared to $47.9
million ($42.22/bbl) and $7.9 million ($6.96/bbl) in Q1 2023;
· Achieved Net Income in the quarter of $46.6 million (US$0.05/share)
compared to $17.0 million (US$0.02) in Q1 2023; and,
· During the quarter, the Company paid a dividend of US$0.015/share and
repurchased 582,708 shares representing a total of $14.7 million of capital
returned to shareholders (~3.4% of June 30, 2023 market capitalization).
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer,
commented:
"PetroTal delivered its strongest quarter to date in Q2 2023. Underpinned by
unconstrained Brazilian export sales, the Company was able to produce over
20,000 bopd for 60 days which allowed the Company to achieve records in almost
all major cash flow metrics including generating over $70 million of EBITDA.
In addition, our Q2 2023 operating and direct transportation cost was
$5.80/bbl versus $7.70/bbl in Q1 2023, showing the benefit of larger volumes
on fixed unit costs, and demonstrating how hard the team has worked to keep
field costs in check, despite an inflationary environment.
The Board and Management are pleased with the additions of Mr. Jose Contreras
(Senior VP Operations) and Mr. Felipe Arbelaez Hoyos (independent
non-executive director). These individuals are fitting in extremely well and
adding significant value to the Company.
Looking ahead to Q3 2023, the Amazon River water level is currently low near
Iquitos and is consequently forecast to be low on the Brazilian side near the
end of Q3 2023, leading to a lighter barge fill requirement projected for most
of the quarter. As a result, the Company is reiterating its full year oil
production guidance of 14,000 - 15,000 bopd. This showcases the importance
of securing other oil export routes and promoting the full and consistent
operation of the ONP pipeline, both of which the Company are committed to
advancing."
Selected Three and Six Month Ended June 30, 2023 Highlights
The table below summarizes PetroTal's comparative financial position.
Average Production (bopd) 19,031 12,193 15,631 13,114
Average sales (bopd) 18,483 12,618 15,567 15,065
Total sales (bbls) 1,681,962 1,135,611 2,817,573 2,726,675
Average Brent price $77.29 $82.51 $79.73 $101.54
Contracted sales price, gross $77.88 $80.32 $78.86 $99.42
Tariffs, fees and differentials ($21.26) ($20.01) ($20.75) ($21.97)
Realized sales price, net $56.61 $60.31 $58.11 $77.44
Oil revenue((1)) $56.61 $95,229 $60.31 $68,494 $58.11 $163,723 $77.44 $211,187
Royalties((2)) $5.29 $8,899 $5.49 $6,238 $5.37 $15,137 $5.31 $14,477
Operating expense $4.22 $7,100 $5.60 $6,354 $4.78 $13,454 $6.75 $18,416
Direct Transportation:
Diluent $0.98 $1,641 $1.20 $1,368 $1.07 $3,009 $2.49 $6,794
Barging $0.53 $896 $0.80 $906 $0.64 $1,802 $1.63 $4,436
Diesel $0.07 $120 $0.10 $113 $0.08 $233 $0.30 $828
Storage $0.00 $0 $0.00 $0 $0.00 $0 $1.27 $3,453
Total Transportation $1.58 $2,657 $2.10 $2,387 $1.79 $5,044 $5.69 $15,511
Net Operating Income((4)) $45.53 $76,573 $47.12 $53,515 $46.17 $130,088 $59.70 $162,783
G&A $3.89 $6,548 $4.90 $5,559 $4.30 $12,107 $3.62 $9,861
EBITDA((3)) $41.63 $70,025 $42.22 $47,956 $41.87 $117,981 $56.08 $152,922
Adjusted EBITDA((3)) $38.09 $64,064 $35.95 $40,825 $37.23 $104,889 $49.69 $135,495
Net Income $27.73 $46,635 $14.95 $16,979 $22.58 $63,614 $54.56 $148,759
Basic Shares Outstanding 922,306 883,800 922,306 844,721
Market Capitalization((6)) $433,484 $521,046 $433,484 $450,490
Net Income/Share $0.051 $0.019 $0.069 $0.176
Capex $26,367 $32,919 $59,286 $41,553
Free Funds Flow((3) (7)) $22.41 $37,697 $6.96 $7,906 $16.19 $45,604 $34.45 $93,941
% of Market Capitalization((6)) 8.7% 1.5% 10.5% 20.9%
Total Cash((8)) $92,552 $71,635 $92,552 $77,016
Net Surplus (Debt) ((3) (9)) $97,523 $71,117 $97,523 $79,401
1. Approximately 91% of sales over Q2 2023 were through the Brazilian route
vs 86% in Q1 2023.
2. Royalties in Q2 2023 include the impact of the 2.5% community social
trust.
3. Non-GAAP (defined below) measure that does not have any standardized
meaning prescribed by GAAP and therefore may not be comparable with the
calculation of similar measures presented by other entities. See "Selected
Financial Measures" section.
4. Net operating income represents revenues less royalties, operating
expenses, and direct transportation; See "Selected Financial Measures"
section.
5. Adjusted EBITDA is net operating income less general and administrative
("G&A") and plus/minus realized derivative impacts. See "Selected
Financial Measures" section.
6. Market capitalization for Q2 2023, Q1 2023, and Q2 2022 assume share
prices of US$0.47, US$0.59, and US$0.53, respectively.
7. Free funds flow is defined as adjusted EBITDA less capital expenditures.
See "Selected Financial Measures" section.
8. Includes restricted cash balances.
9. Net Surplus/(Debt) = Total cash + all trade and VAT receivables + short
and long term net derivative balances - total current liabilities - long term
debt - non current lease liabilities - net deferred tax - other long term
obligations.
Q2 2023 Financial Commentary and Variance Summary:
· Record oil sales in the quarter driving considerable Net Operating
Income ("NOI")((1)), EBITDA, and Net Income;
· Solid per barrel OPEX and run rate G&A metrics of $5.80/bbl and
$3.89/bbl respectively, compared to $7.70/bbl and $4.90/bbl in the prior
quarter; and,
· Strong liquidity demonstrated with the Company's net surplus((1))
growing to over $97 million from $71 million in the prior quarter.
((1) See "Selected Financial Measures")
Three months ended Six months ended
US$/bbl Variance Summary Q2 2023 Q1 2023 Variance Q2 2023 Q2 2022 Variance
Oil Sales (in thousands of barrels) 1,682 1,136 545 2,818 2,727 91
Contracted Brent Price $77.88 $80.32 ($2.44) $78.86 $99.42 ($20.56)
Realized Sales Price $56.61 $60.31 ($3.70) $58.11 $77.44 ($19.33)
Royalties $5.29 $5.49 ($0.20) $5.37 $5.31 $0.06
Total OPEX $5.80 $7.70 ($1.90) $6.57 $12.44 ($5.87)
Net Operating Income((1)) $45.53 $47.12 ($1.59) $46.17 $59.70 ($13.53)
G&A $3.89 $4.90 ($1.01) $4.30 $3.62 $0.68
EBITDA $41.63 $42.22 ($0.59) $41.87 $56.08 ($14.21)
Net Income $27.73 $14.82 $12.91 $22.58 $54.56 ($31.98)
Free Funds Flow((2)) $22.41 $6.96 $15.45 $16.19 $34.45 ($18.26)
1. Net operating income represents revenues less royalties, operating
expenses, and direct transportation; See "Selected Financial Measures"
section.
2. Free funds flow is defined as adjusted EBITDA less capital expenditures.
See "Selected Financial Measures" section.
Financial and Operating Updates Subsequent to June 30, 2023
Workovers and Rig Move. PetroTal moved its contracted drilling rig to
service three of its older Bretana oil wells. The three workovers were all
completed in July for an average cost of approximately $1.6 million per well
including rig mobilization costs. At approximately $85/bbl Brent and
netbacks of $46/bbl, the wells need to generate an estimated 35,000 barrels of
oil each to payout which is estimated to take two to three months based on
internal forecasted oil rates. Initial daily rates seen thus far on each of
the three wells have been positive and have initially ranged between 600 to
845 bopd. The new west drilling platform ("L2 West Platform") is expected to
be ready by mid September at which time the rig will be moved to drill the 16H
well with expected spud by mid October 2023. In the interim, the rig is
ongoing preventive maintenance.
Current Oil Production. July 2023 average production was 11,552 bopd and was
impacted by low river levels and barging sales constraints with August 2023
expected to average at approximately 13,000 bopd. These rates have been
intentionally constrained to manage barge river logistics during the current
dry season.
ONP Update. As announced in May 2023, the Northern Peruvian Pipeline ("ONP")
briefly resumed pipeline operations on April 12, 2023, after over a year of
being shut down for maintenance and social unrest related reasons.
Currently, the pipeline is operational, however, the Company is not delivering
any oil into this route, due to Petroperu's credit line not being available.
If their credit facility was available, the Company could continue producing
in the order of 20,000 bopd during the ongoing dry season. The Company is
also pleased to announce it has received the final payment from Petroperu of
last year's outstanding $64 million revenue true-up. Outstanding receivables
from Petroperu now total $22 million which relate to oil delivered to the ONP
in early 2022.
Return of Capital Policy. In Q1 2023, the Company formalized its dividend
and share buyback policy stating, subject to maintaining a minimum liquidity
level of $60 million including a portion of unused credit facility capacity,
the Company will (a) pursue a share buyback program of approximately $3
million per quarter and (b) pay eligible dividends in 2023 equal to the sum of
US$0.015 per share per quarter and incremental amounts from available cash,
consistent with maintaining the minimum liquidity level.
Q2 2023 Dividend Declaration. Based on the Company's current excess
liquidity above $60 million and the described return of capital policy above,
PetroTal confirms that a cash dividend of US$0.025 per common share will be
declared and paid in Q3 2023. This represents a 4.7% quarterly dividend
yield (18.7% annualized) based on current share price and includes the
recurring US$0.015 per common share amount that was paid in the prior quarter,
plus an amount for a minimum liquidity sweep equal to approximately US$0.01
per common share. The total dividend of US$0.025 per common share will be
paid according to the following timetable:
· Ex dividend date: August 30, 2023
· Record date: August 31, 2023
· Payment date: September 15, 2023
The dividend is an eligible dividend for the purposes of the Income Tax Act
(Canada) and investors should note that the excess liquidity sweep portion of
all future dividends may be subject to fluctuations up or down in accordance
with the Company's return of capital policy. Shareholders outside of Canada
should contact their respective brokers or registrar agents for the
appropriate tax election forms regarding this dividend.
Mr. Felipe Arbelaez Hoyos Appointed to PetroTal's Board. As announced on
July 6, 2023, the Company welcomed Mr. Felipe Arbelaez Hoyos, who was recently
appointed to PetroTal's board as an independent non-executive director. Mr.
Arbelaez Hoyos is currently the Senior Vice President Hydrogen and Carbon
Capture Systems for BP Energy in London and brings an in depth commercial and
ESG knowledge base to the Company.
H2 2023 Outlook and Full Year Guidance
Based on emerging seasonably low river levels through the Amazon River from
Iquitos to Manaus, and temporary longer than normal border barge permitting
times, the Company is re-iterating its 2023 guidance. Based on river system
data, the Company estimates the dry season will now be similar to the 2022
level, however, has factored this into its guidance as previously stated.
From a full year cash flow perspective, the Company also estimates having
similar free cash flow to previous guidance.
Updated Corporate Presentation
The Company has updated its Corporate Presentation, which is available for
download or viewing at www.petrotal-corp.com (http://www.petrotal-corp.com) .
Enercom Conference in Denver
The Company will be presenting at the upcoming Enercom Energy Conference in
Denver, Colorado on August 14, 2023 and will be posting a replay of the
presentation on its website shortly after.
Q2 2023 webcast link
Please join the Company for its Q2 2023 webcast on August 8, 2023 at 9am CT
and 3PM London Time.
https://stream.brrmedia.co.uk/broadcast/646f74f3c0e842f4c6ea72ed
(https://stream.brrmedia.co.uk/broadcast/646f74f3c0e842f4c6ea72ed)
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 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: PetroTal's drilling, completions,
workovers and other activities; the Company's expectation that workovers of
Bretana oil wells will provide strong economics; anticipated future
production and revenue; drilling plans including the timing of drilling,
commissioning, and startup (including in respect of well 16H, well 17H and the
L2 West Platform); expectations surrounding disrupted barge logistics and the
consequences in respect thereof, including in relation to the Company's H2
2023 production guidance; forecasted conditions for the remainder of 2023 and
consequences thereof including the forecast that the Amazon River's elevation
will be low on the Brazilian side near the end of the third quarter of 2023
leading to lighter barge fill requirement projections and lessening PetroTal's
H2 2023 production levels; expectation that construction of the L2 West
Platform will be completed in September 2023 and corresponding effect on the
timing of well 16H drilling and development; expectations relating to the ONP
reopening including in respect of exportation volumes; expectations
surrounding oil production rates throughout the remainder of 2023 including
that it will average approximately 13,000 bopd in August 2023; plans to
commence drilling well 17H in December 2023 and anticipated costs in respect
of the same; intentions with respect to return of capital, including quarterly
eligible dividend payments equal to the sum of US$0.015 per share per quarter
(and incremental amounts from available cash, consistent with maintaining the
minimum liquidity level) and share buybacks of approximately $3 million per
quarter; the Company's Q2 2023 declaration of cash dividends in respect of Q2
2023 operations and timing thereof. 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, 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.
SPECIFIED FINANCIAL MEASURES: This press release includes various specified
financial measures, including non-GAAP financial measures, non-GAAP financial
ratios and capital management measures as further described herein. These
measures do not have a standardized meaning prescribed by generally accepted
accounting principles ("GAAP") and, therefore, may not be comparable with the
calculation of similar measures by other companies. Management uses these non-
GAAP measures for its own performance measurement and to provide shareholders
and investors with additional measurements of the Company's efficiency and its
ability to fund a portion of its future capital expenditures. "Adjusted
EBITDA" (non-GAAP financial measure) is calculated as consolidated net income
(loss) before interest and financing expenses, income taxes, depletion,
depreciation and amortization and adjusted for G&A impacts and certain
non-cash, extraordinary and non-recurring items primarily relating to
unrealized gains and losses on financial instruments and impairment losses,
including derivative true-up settlements. PetroTal utilizes adjusted EBITDA as
a measure of operational performance and cash flow generating capability.
Adjusted EBITDA impacts the level and extent of funding for capital projects
investments. Reference to EBITDA is calculated as net operating income less
G&A. "Net Operating Income" (non-GAAP financial measure) is calculated as
revenues less royalties, operating expenses, and direct transportation. The
Company considers Net Operating Income measure as they demonstrate Company's
profitability relative to current commodity prices. "Net surplus (debt)" is
calculated by adding together total cash, trade and VAT receivables, and short
and long-term net derivative balances less total current liabilities,
long-term debt, non-current lease liabilities, deferred tax, and other
long-term obligations. Net surplus (debt) is used by management to provide a
more complete understanding of the Company's capital structure and provides a
key measure to assess the Company's liquidity. "Free funds flow" (non-GAAP
financial measure) is calculated as net operating income less G&A less
exploration and development capital expenditures less realized derivative
gains/losses and is calculated prior to all debt service, taxes, lease
payments, hedge costs, factoring, and lease payments. Management uses free
funds flow to determine the amount of funds available to the Company for
future capital allocation decisions. Please refer to the MD&A for
additional information relating to specified financial measures. "Funds flow
provided by operations" (non-GAAP financial measure) includes all cash
generated from operating activities and is calculated before changes in
non-cash working capital. "Free cash flow" (non-GAAP financial measure) is
calculated as EBITDA less G&A less Capex prior to the realization of any
derivative impacts.
Eligible Dividend: An eligible dividend is one which is characterized as
such by the dividend-paying corporation for Canadian residents. The primary
benefit of an eligible dividend is that it benefits from an enhanced gross-up
and credit regime at the shareholder level (i.e., the shareholder pays less
tax on eligible dividends than non-eligible dividends). This is meant to
compensate for the higher general corporate tax rate paid by non-CCPC's on
their income and generally preserve integration of Canada's tax rates. As an
example, for federal income tax purposes the gross-up rate for eligible
dividends is 38% (as compared to 15% for non-eligible dividends) such that the
amount of the dividend is multiplied by 1.38 to determine the taxable income
to the shareholder. The dividend tax credit for eligible dividends is
additionally increased to 6/11 (or 15.02%), as compared to 9/13 (9%) for
non-eligible dividends, to offset the greater income inclusion to the
taxpayer. Each province provides similar relief on the tax they would
otherwise levy on the dividends, although the effective gross-up and credit
differs by province.
FOFI DISCLOSURE: This press release contains future-oriented financial
information and financial outlook information (collectively, "FOFI") about
PetroTal's H2 2023 guidance and components thereof, prospective results of
operations and production, infrastructure costs, free funds 1 (#_ftn1) flow
and components thereof (including total EBITDA, tax and Capex), revenue,
margins, net operating income and shareholder returns and components thereof,
all of which are subject to the same assumptions, risk factors, limitations
and qualifications as set forth in the above paragraphs. FOFI contained in
this press release was approved by management as of the date of this press
release and was included for the purpose of providing further information
about PetroTal's anticipated future business operations. PetroTal and its
management believe that FOFI has been prepared on a reasonable basis,
reflecting management's best estimates and judgments, and represent, to the
best of management's knowledge and opinion, the Company's expected course of
action. However, because this information is highly subjective, it should not
be relied on as necessarily indicative of future results. PetroTal disclaims
any intention or obligation to update or revise any FOFI contained in this
press release, whether as a result of new information, future events or
otherwise, unless required pursuant to applicable law. Readers are cautioned
that the FOFI contained in this press release should not be used for purposes
other than for which it is disclosed herein. All FOFI contained in this press
release complies with the requirements of Canadian securities legislation,
including NI 51-101. Changes in forecast commodity prices, differences in the
timing of capital expenditures, and variances in average production estimates
can have a significant impact on the key performance measures included in
PetroTal's guidance. The Company's actual results may differ materially from
these estimates.
(#_ftnref1)
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