PetroTal Corp. - Q4 2023 Operations and Corporate Updates
10/01/2024 07:00
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RNS Number : 2246Z PetroTal Corp. 10 January 2024
PetroTal Announces Q4 2023 Operations and Corporate Updates
Quarterly average production of 14,865 bopd in Q4 2023
2023 average production of 14,248 bopd
December 2023 average production of 20,090 bopd
Unrestricted cash liquidity of $90 million as at December 31, 2023
Calgary, AB and Houston, TX - January 10, 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.
Q4 2023 Production
PetroTal achieved average production of 14,865 barrels of oil per day ("bopd")
in Q4 2023 and 14,248 bopd for the year 2023. During the month of December,
due to improved river levels from the return of the rainy season, production
averaged 20,090 bopd, helping meet Q4 2023 and the 2023 production guidance
range of 14,000 to 15,000 bopd.
Operational Update
With the installation of the L2 West Platform completed, the Company has
successfully drilled its first horizontal well (16H) on the new platform.
Well 16H is currently being completed and expected to start production by
mid-January 2024. The 16H well should allow the Company to maintain
production above 20,000 bopd for the foreseeable future now that the Company,
through its trading partner, has enhanced the oil export barge fleet capacity
to more than 1.6 million barrels. This, together with reducing the time for
discharge operations at the Brazilian offloading site, will mitigate
production bottlenecks as experienced during the first quarter of 2023.
Alternative Sales Route Update
The Company is in the process of obtaining the relevant authorization for use
of the most suitable port in Ecuador for the export of oil produced from
Bretana via the OCP pipeline. With support from the OCP, (Ecuador's primary
transportation company), PetroTal has been working closely with the various
Ecuadorian government energy entities that are involved in the authorization
processes. Based on the positive support received to date from the OCP and
Petroecuador, the Company is confident in its ability to obtain eventual
authorization for future recurring sales to the OCP in mid to late 2024.
Cash and Liquidity Update
PetroTal exited Q4 2023 in a strong position with approximately $90 million of
unrestricted cash and $21 million of restricted cash for a total of $111
million as at December 31, 2023. Restricted cash includes amounts reserved
for the social trust funds to be deposited at a later date. The robust cash
position supports future returns of capital to shareholders in the form of
regular dividends, special dividends and share buybacks, as approved by the
Board. During Q4 2023, the Company purchased 5.1 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 December 15, 2023 related to Q3
2023 operations. Accounts receivable of approximately $70 million are
contractually current, with accounts payable of approximately $68 million,
primarily due within the next 50 days.
VP Exploration and Development Retirement
Mr. Dewi Jones, VP Exploration and Development will retire from PetroTal on
January 18, 2024, having served in this capacity since March 1, 2021.
PetroTal appreciates Mr. Jones efforts and guidance over the last three
years.
The duties of his position are being reallocated internally, so a replacement
is not being considered at this time. Mr. Jose Contreras, Senior Vice
President Operations will assume all responsibilities for Bretana's
development. PetroTal is pleased to advise that it has re-engaged Mr.
Estuardo Alvarez-Calderon in a consulting capacity to coordinate the
exploration aspects. Mr. Alvarez-Calderon was a founding partner of PetroTal
and served as PetroTal's VP Exploration and Development from 2017 until
retiring in 2021.
2024 Budget announcement with webcast link for January 22, 2024 at 9am CT
The Company will be announcing its 2024 budget and guidance on January 22,
2024. That same day, PetroTal will also host a webcast to discuss its 2024
budget at 9:00am Central Time (3:00pm GMT). Please see the link below to
register.
https://stream.brrmedia.co.uk/broadcast/65967ac7b012a6d30b474779
(https://stream.brrmedia.co.uk/broadcast/65967ac7b012a6d30b474779)
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer,
commented:
"The Company expects to have a strong oil sales profile while river levels are
high. With well 16H commencing production in January 2024, the Company hopes
to produce over 20,000 bopd for the foreseeable future as we have expanded our
export barging fleet to over 1.6 million barrels, and we continue to expand
into other sales markets. We are excited to be starting 2024 at this
production level and will be announcing our 2024 plans very shortly.
PetroTal remains in a strong financial position with no long-term debt. With
$90 million unrestricted cash and $21 million of restricted cash, we will
continue with our plans to return capital to investors via dividends and share
buybacks for the foreseeable future.
I wish to thank Dewi Jones for his contribution to PetroTal's successful
growth and wish him well in his retirement, and welcome back Estuardo
Alvarez-Calderon who will be leading our exploration efforts."
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: 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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