TIDMPTAL
RNS Number : 7437J
PetroTal Corp.
21 August 2019
PetroTal Successfully Converts Water Disposal Well to Oil
Producer with Uplift of 2,700 Barrels of Oil per Day
Calgary and Houston - August 21, 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
-- Company has successfully completed the BN 95-2WD well (the "2WD")
-- Following completion of the 2WD, the Company successfully
converted the existing water disposal well ("BN 95-1W") into an oil
producer, renamed the BN 95-1
-- BN 95-1 initial production rate of 2,700 barrels of oil per
day ("BOPD") exceeds management expectations
-- Current production approximates 5,500 BOPD
-- Total field production in August has averaged approximately 5,000 BOPD as expected
-- Company spud the BN 95-4 well, a development oil well planned with a horizontal completion
PetroTal has completed a new water disposal well, BN 95-2WD, and
proved injection capacity, thus allowing the Company to recomplete
BN 95-1W and make it an oil producer, BN 95-1. Management expected
the BN 95-1 to deliver initial uplift of 1,500-2,000 BOPD. The
initial production rate over the first seven days was 2,700 BOPD.
Management plans to provide more information on the BN 95-1 well at
the end of August. The Company has spud the BN 95-4 well, intended
to be a horizontal completion into the Vivian formation. The BN
95-4 well is expected to take 60 days to drill and complete, with a
500-meter lateral completion scheduled.
Total Bretaña field production is currently at 5,500 BOPD, with
the BN 1XD still shut-in, allowing us to reach an August average
production of 5,000 BOPD as expected. The central processing
facilities to increase Bretaña's total oil field production,
expected to be commissioned in December, should bring total field
production up to 10,000 BOPD by year-end with the successful
drilling and completion of two additional oil development wells,
the BN 95-4 and BN 95-5.
Manolo Zuniga, President and Chief Executive Officer,
commented:
"Continued execution at Bretaña and stable production above
5,000 BOPD should give confidence to all stakeholders in our
ability to unlock value. The water disposal injectivity test rate
of approximately 40,000 barrels of water per day shows just how
permeable the Vivian formation is. It also allows us to optimize
our capital budget and push our next water disposal well to next
year, allowing us to focus on oil producing wells in next year's
capital budget. The operations team continue to do an outstanding
job.
The re-completion of BN 95-1W into an oil producer, at a capital
cost of approximately $2.3 million, provides a payout in less than
30 days and is an excellent example of capital efficiency. With
current production of 5,500 BOPD, we expect to meet our quarterly
target of 5,000 BOPD for the third quarter. We have spud the BN
95-4 well and we are hopeful that this scheduled horizontal
completion, with new technology to keep water cuts at lower levels
during the initial months, will add to the existing production
base, as well as provide valuable information to evaluate reserves
at year-end 2019."
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) 208 434 2643
James Spinney / Ritchie Balmer / Eric Allan
Strand Hanson Limited (Nominated & Financial Adviser)
T: 44 (0) 207 409 3494
John Prior / Emily Morris
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 and completion activities
of oil producing and water disposal wells and the results and
timing of such activities; commissioning of capital processing
facilities; expectations regarding total field production capacity;
the ability of the Company to achieve drilling success consistent
with management's expectations; capital budget expectations;
anticipated future production; production targets; payout
expectations; water cut levels; 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, 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
initial 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, capital budget, 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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contact rns@lseg.com or visit www.rns.com.
END
MSCSEWSIFFUSEFA
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