TIDMPTAL
RNS Number : 2014F
PetroTal Corp.
11 July 2019
PetroTal Corp. Provides Quarterly Operations Update
Calgary and Houston - July 11, 2019-PetroTal Corp. ("PetroTal"
or the "Company") (TSX-V: TAL and AIM: PTAL) is pleased to provide
an update in respect of its operations and production at the
Bretaña field in Block 95 (PetroTal: 100% Working Interest) in
Peru.
HIGHLIGHTS
-- BN 95-3D well (the "3D"), which came online mid-June 2019
with initial production of 3,500 barrels of oil per day ("BOPD")
and averaged 2,875 BOPD over the first 24 days of production
-- Full field Bretaña production averaged 3,000 BOPD in 2Q2019,
ahead of analyst expectations, and averaged 5,350 BOPD since the 3D
came online
-- Company has spud the BN 95-2WD well (the "2WD") which will be the primary water disposal well
-- Following completion of the 2WD, the Company plans to convert
the existing water disposal well into an oil producer
-- Social unrest in the Northern jungle of Peru has had minimal effect on PetroTal's operations
Further to the Company's announcement on 19 June 2019, the
Company's third oil well, which came online at an initial rate of
approximately 3,500 BOPD, is now being produced at 3,100 BOPD. The
well has an electric submersible pump ("ESP") that will optimize
future well productivity. Total production from the field since the
3D came online has averaged 5,350 BOPD and current daily production
is approximately 5,000 BOPD. The Company has begun storing crude
oil at Saramuro, Peru to be able to ship the first 50,000 barrel
batch through the ONP pipeline, with subsequent batches expected to
be of 100,000 barrels each.
Once the 2WD water disposal well is completed, PetroTal will
begin a workover of the existing water disposal well, making it the
Company's fourth oil producer. The next phase of production
facilities is being built and is expected to be in the field and
begin commissioning by year-end 2019. This, alongside the drilling
and completion of the BN 95-4H well (the next new well in the
campaign), will provide the Company with the capacity to produce up
to 10,000 BOPD.
Since July 5, the northern jungle region of Peru has been
enduring social unrest as the local communities are demanding
solution to a series of demands, including a larger share of the
Government take towards the local populations where the crude oil
is produced. This is something the Company supports, combined with
the training of local officials responsible for deploying the
money. Except for the Bretaña field, all other northern jungle
producing fields are either shut or not being able to fiscalize its
production. Pump station No. 5 of the Oil Northern Peru ("ONP")
pipeline was reopened yesterday, which should help normalize
operations in the next few days. Nevertheless, the Company has had
to curtail production, which has averaged 4,875 BOPD since the
unrest began due to foreseen limits to storage capacity. The
Company will keep investors informed regarding any downtime and
production curtailments over the next few weeks.
Manolo Zuniga, President and Chief Executive Officer,
commented:
"We are very pleased to have achieved quarter on quarter
production growth of 300 percent, a direct result of the team's
success and experience. We averaged 3,000 BOPD in the second
quarter and exceeded the production milestone of 500,000 total
barrels of crude oil in June 2019. We are making good progress on
the water disposal well and are excited to start the workover of
the existing water disposal well making it the fourth oil producer
in the Company's brief history.
Our latest equity raise has allowed PetroTal to have a great
deal of financial flexibility, with no debt. We will continue to
optimize the capital structure, providing stakeholders exposure to
a truly independent oil company with double digit growth through
development drilling alone, complemented by substantial exploration
potential at Osheki in Block 107. We continue to host companies in
the data room to review the Osheki opportunity, with the potential
of engaging a joint venture partner to drill the prospect in
2020.
It is a testament to PetroTal's philosophy that the Bretaña
field is the only one still producing normally during the protests.
This is a reflection that the local communities believe we are
working on behalf of all stakeholders, promoting the fair
distribution and proper use of the government take from the Bretaña
Project. Though we cannot guarantee Bretaña will not eventually be
shut as a consequence of their demands, we would expect this would
be for a relatively short period of time."
For further information, please contact:
Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@Petrotal-Corp.com
T: (713) 609-9101
Mark Antelme / Jimmy Lea
Celicourt Communications (Financial PR)
petrotal@celicourt.uk
T: 44 (0) 207 520 9261
James Spinney / Ritchie Balmer / Eric Allan
Strand Hanson Limited (Nominated & Financial Adviser)
T: 44 (0) 207 409 3494
John Prior / Emily Morris / George Price
Numis Securities Limited (Joint Broker)
T: +44 (0) 207 260 1000
Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 (0) 20 7448 0200
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release may contain
certain statements that may be deemed to be forward-looking
statements. Such statements relate to possible future events,
including, but not limited to: PetroTal's business strategy,
objectives, strength and focus; drilling, completion and workover
activities of oil producing and water disposal wells and the
results and timing of such activities; the use of an ESP to
optimize well productivity; transportation activities; the ability
of the Company to achieve drilling success consistent with
management's expectations; anticipated future production; engaging
a partner to drill the Osheki prospect; exit production in 2019;
and future development and growth prospects. 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. 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, reservoir characteristics,
recovery factor, exploration upside, prevailing commodity prices
and the actual prices received for PetroTal's products, the
availability and performance of drilling rigs, facilities,
pipelines, other oilfield services and skilled labour, royalty
regimes and exchange rates, 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, 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 and 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. Please refer to the risk factors
identified in the Company's annual information form for the year
ended December 31, 2018 and management's discussion and analysis
for the three months ended March 31, 2019 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 AND GAS INFORMATION: References in this press release to
production test rates, initial test production rates, and other
short-term production rates are useful in confirming the presence
of hydrocarbons, however such rates are not determinative of the
rates at which such wells will commence production and decline
thereafter and are not indicative of long term performance or of
ultimate recovery. While encouraging, readers are cautioned not to
place reliance on such rates in calculating the aggregate
production for PetroTal. A pressure transient analysis or well-test
interpretation has not been carried out in respect of all wells.
Accordingly, the Company cautions that the test results should be
considered to be preliminary.
FOFI DISCLOSURE: This press release contains future-oriented
financial information and financial outlook information
(collectively, "FOFI") about PetroTal's prospective results of
operations, production, balance sheet, growth 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 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
Canadian Securities Administrators' National Instrument 51-101
Standards of Disclosure for Oil and Gas Activities.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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