TIDMPTAL
RNS Number : 1619Q
PetroTal Corp.
24 February 2021
PetroTal Announces 2020 Year-End Oil Reserves
7% increase in 2P Reserves to 51.0 million barrels
and 25% increase in 3P Reserves to 106.1 million barrels
Calgary, AB and Houston, TX - February 24, 2021-PetroTal Corp.
("PetroTal" or the "Company") (TSX-V: TAL and AIM: PTAL), a
Peruvian focused E&P company, is pleased to announce the
results of its 2020 year-end reserve evaluation by Netherland,
Sewell & Associates, Inc. ("NSAI") for the Bretaña oil field,
operated 100% by PetroTal. All currency amounts are in United
States dollars (unless otherwise stated) and comparisons refer to
December 31, 2019.
HIGHLIGHTS:
-- P roved ("1P") reserves increased by 4% to 22.3 million
barrels ("mmbbl") from 21.5 mmbbl, Proved plus Probable ("2P")
reserves increased by 7% to 51.0 mmbbl from 47.7 mmbbl and Proved
plus Probable and Possible ("3P") reserves increased by 25% to
106.1 mmbbl from 84.8 mmbbl;
-- Relative to 2020 oil production of 2.1 mmbbl, reserve
replacement was 38% in 1P reserves and 157% in 2P reserves;
Bretaña's reserve life index ("RLI") for 1P and 2P reserves is now
6.4 years and 14.6 years, respectively;
-- Original oil in place ("OOIP") estimates for 1P, 2P, and 3P
reserve categories were unchanged from 2019 at 235, 364, and 579
mmbbls, respectively;
-- NSAI attributes a corresponding 2P recovery factor of 15.0%,
increased from 13.6% at year-end 2019 due to performance of the
existing wells;
-- A 19% decrease in total 2P operating costs resulting in an
undiscounted saving of $232 million driven by further calibration
and optimization to the Company's actual cost structure;
-- Net Present Value (before tax, discounted at 10%) (NPV-10) is
calculated at $317 million ($14.21/bbl) for 1P reserves, $830
million ($16.27/bbl) for 2P reserves;
-- The 2021 development program combined with all future
development and abandonment costs, represent total finding and
development costs of $11.52/bbl for 1P reserves, $4.96/bbl for 2P
reserves and $3.16/bbl for 3P reserves; and
-- On a 2P basis, this represents a recycle ratio of 4.7 times,
based on the total $4.96/bbl finding and development cost relative
to a netback of $23.40/bbl (assumed at $50.00/bbl Brent oil
price).
2020 Year-end Reserves Summary
The summary below sets forth PetroTal's reserves as at December
31, 2020, as presented in the independent reserves report prepared
by NSAI, a qualified reserves evaluator. The figures in the
following tables have been prepared in accordance with the
standards contained in the most recent publication of the Canadian
Oil and Gas Evaluation Handbook (the "COGE Handbook") and the
reserve definitions contained in National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
In addition to the summary information disclosed in this
announcement, more detailed information will be included in
PetroTal's annual information form for the year ended December 31,
2020 (the "AIF") to be filed on SEDAR (www.sedar.com) and posted on
PetroTal's website ( www.petrotal-corp.com ) in April 2021.
Six Year Crude Oil Price Forecast - NSAI Report
Year-End Forecast: 2021 2022 2023 2024 2025 2026
--------------------------- ------ ------ ------ ------ ------ ------
Brent (USD$/bbl) - January
1, 2021 $49.42 $52.85 $56.04 $57.87 $59.00 $60.15
------ ------ ------ ------ ------ ------
Brent (USD$/bbl) - January
1, 2020 $67.94 $70.06 $71.66 $73.27 $74.57 $76.22
------ ------ ------ ------ ------ ------
The oil price projections used by NSAI are based upon an average
of December 31, 2020 and 2019 forecasts of Brent Crude futures
prices prepared by qualified reserves evaluators: GLJ Petroleum
Consultants Ltd., McDaniel & Associates Consultants Ltd. and
Sproule Associates Limited.
Year-End Crude Oil Reserves (mmbbl)
CATEGORY 2020 2019 Change
Proved
------ ----- -------
Developed Producing 12.0 11.2 +7%
------ ----- -------
Undeveloped 10.3 10.3 0%
------ ----- -------
Total Proved 22.3 21.5 +4%
---------------------------- ------ ----- -------
Probable 28.7 26.2 +10%
------ ----- -------
Total Proved plus Probable 51.0 47.7 +7%
---------------------------- ------ ----- -------
Possible 55.1 37.1 +49%
------ ----- -------
Total Proved plus Probable
& Possible 106.1 84.8 +25%
---------------------------- ------ ----- -------
Represents gross and net barrels since PetroTal owns a 100%
working interest and a 100% net revenue interest in these
properties. Royalties are paid from sales proceeds.
Year-End Net Present Value at 10% - Before Tax ($ millions)
CATEGORY 2020 2019 Change
Proved
------- ------- -------
Developed Producing $135 $202 -33%
------- ------- -------
Undeveloped $182 $232 -22%
------- ------- -------
Total Proved $317 $434 -27%
---------------------------- ------- ------- -------
Probable $513 $665 -23%
------- ------- -------
Total Proved plus Probable $830 $1,098 -24%
---------------------------- ------- ------- -------
Possible $891 $777 +15%
------- ------- -------
Total Proved plus Probable
& Possible $1,721 $1,875 -8%
---------------------------- ------- ------- -------
Using the December 31, 2019 NSAI price deck on the December 31,
2020 NSAI reserves, holding all other assumptions constant, the
year-end net present values (before tax) discounted at 10% would
increase by the following approximate amounts: 1P - $250 million,
2P - $480 million, 3P - $780 million.
Year-End Net Present Value at 10% - After Tax ($ millions)
CATEGORY 2020 2019 Change
Proved
------- ------- -------
Developed Producing $134 $137 -2%
------- ------- -------
Undeveloped $137 $158 -13%
------- ------- -------
Total Proved $271 $295 -8%
---------------------------- ------- ------- -------
Probable $350 $452 -23%
------- ------- -------
Total Proved plus Probable $621 $746 -17%
---------------------------- ------- ------- -------
Possible $607 $529 15%
------- ------- -------
Total Proved plus Probable
& Possible $1,228 $1,275 -4%
---------------------------- ------- ------- -------
Year-End Reserves Value per Share - After tax
CATEGORY Dec. 31, 2020 Dec. 31, 2019
---------------------- -------------------------- --------------------------
Reserves per share US$/sh CAD$/sh GBP/sh US$/sh CAD$/sh GBP/sh
------- -------- ------- ------- -------- -------
Proved $0.33 $0.43 0.24 $0.44 $0.59 0.33
------- -------- ------- ------- -------- -------
Proved plus Probable $0.76 $0.98 0.56 $1.11 $1.48 0.84
------- -------- ------- ------- -------- -------
Proved plus Probable
& Possible $1.50 $1.93 1.10 $1.90 $2.53 1.43
------- -------- ------- ------- -------- -------
Represents NPV-10 (after tax) divided by the number of common
shares issued as of December 31 of each respective year and
excludes other balance sheet items at the relevant date. Canadian
share prices are converted at the respective year end foreign
exchange conversion rates. Common share count as at December 31,
2020 totaling 816.2 million shares and as at December 31, 2019
totaling 672.2 million shares.
Reserve Life Index
CATEGORY Dec. 31, 2020 (1) Dec. 31, 2019 (3)
-------------------------------- ----------------- -----------------
Proved 6.4 years 7.7 years
----------------- -----------------
Proved plus Probable 14.6 years 17.0 years
----------------- -----------------
Proved plus Probable & Possible 30.3 years 30.3 years
(2)
----------------- -----------------
(1) Based on 2020 year-end reserves divided by annualized Q1
2020 production of approximately 9,686 bopd.
(2) The license for Block 95 expires in 2041.
(3) Based on 2019 year-end reserves divided by annualized Q4
2019 production of approximately 7,757 bopd.
Future Development Costs
The following information sets forth development and abandonment
costs deducted in the estimation of PetroTal's future net revenue
attributable to the reserve categories noted below:
CATEGORY ($ million) 2020 2019 Change
---------------------------- ----- ----- -------
Proved
----- ----- -------
Developed Producing $15 $16 -6%
----- ----- -------
Undeveloped $104 $108 -4%
----- ----- -------
Total Proved $119 $124 -4%
---------------------------- ----- ----- -------
Probable $75 $70 +7%
----- ----- -------
Total Proved plus Probable $193 $194 -1%
---------------------------- ----- ----- -------
Possible $104 $105 -1%
----- ----- -------
Total Proved plus Probable
& Possible $297 $299 -1%
---------------------------- ----- ----- -------
Future development costs ($/bbl) 2020 2019 Change
--------------------------------- ------ ------ ------
Proved $11.52 $12.04 -4%
------ ------ ------
Proved plus Probable $4.96 $5.32 -7%
------ ------ ------
Proved plus Probable & Possible $3.16 $4.06 -22%
------ ------ ------
The future development and abandonment costs are estimates of
the future capital expenditures required to convert the
corresponding reserves to proved developed producing ("PDP")
reserves. Future development per barrel is determined using the
future development capital divided by the 1P, 2P, or 3P reserves,
less cumulative PDP.
2020 Year-End Gross Reserves Reconciliation (mmbbl)
Proved Proved plus Probable Proved plus Probable
& Possible
--------------------- ------- --------------------- ---------------------
December 31, 2019 21.5 47.7 84.8
------- --------------------- ---------------------
Technical Revisions 3.8 5.9 24.0
------- --------------------- ---------------------
Economic Factors (1.0) (0.6) (0.6)
------- --------------------- ---------------------
Production (2.1) (2.1) (2.1)
--------------------- ------- --------------------- ---------------------
December 31, 2020 22.3 51.0 106.1
------- --------------------- ---------------------
Manuel Pablo Zuniga-Pflucker, President and Chief Executive
Officer, commented:
Considering the challenging conditions 2020 presented, we are
extremely happy with the 2020-year end reserve report. The recovery
factor improvements in our 2P and 3P categories support our thesis
of continued reservoir performance over time matching that of
nearby analogous fields with higher recovery factors. With
additional time and field data, we expect to see continual recovery
improvements. We are also very proud of the hard working operations
and commercial teams at PetroTal which were able to demonstrate and
justify to our reserve evaluators, a decrease in 2P operating costs
by 19%, equating to $232 million, in undiscounted savings over the
remaining reserve life. We will continue to run operations
prudently with attention to optimization, cost reductions and
safety for the benefit of all our stakeholders.
Qualified Person's Statement
Estuardo Alvarez-Calderon, the Company's Vice President,
Exploration and Development, who has over 35 years of relevant
experience in the oil industry, has approved the technical
information contained in this announcement. Mr. Alvarez-Calderon
received a Bachelor of Science degree in Geology from the
University of Texas at Austin and is registered on the Texas Board
of Professional Geoscientists.
The recovery and reserve estimates provided in this news release
are estimates only, and there is no guarantee that the estimated
reserves will be recovered. Actual reserves may eventually prove to
be greater than, or less than, the estimates provided herein. In
certain of the tables set forth below, the columns may not add due
to rounding.
ABOUT PETROTAL
PetroTal is a publicly traded, dual--quoted (TSXV: TAL and AIM:
PTAL) 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 Bretaña
oil field in Peru's Block 95 where oil production was initiated in
June 2018, and in early 2020 became the second largest crude oil
producer in Peru. Additionally, the Company has large exploration
prospects and is engaged in finding a partner to drill the Osheki
prospect in Block 107. The Company's management team has
significant experience in developing and exploring for oil in
Northern Peru and is led by a Board of Directors that is focused on
safely and cost effectively developing the Bretaña oil field.
For further information, please see the Company's website at
www.petrotal-corp.com , the Company's filed documents at
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
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright / Rupert Holdsworth Hunt / Harry Baker
T: +44 (0) 7711 627449
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: PetroTal's business strategy, objectives, strength
and focus; drilling, water and completion activities and the
anticipated costs and results of such activities; the ability of
the Company to achieve drilling success consistent with
management's expectations; anticipated future production and
revenue; future development and growth prospects; and the timing of
release of the AIF. All statements other than statements of
historical fact may be forward-looking statements. In addition,
statements relating to expected production, reserves, recovery,
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. 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 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. In addition, the Company cautions
that current global uncertainty with respect to the spread of the
COVID-19 virus and its effect on the broader global economy may
have a significant negative effect on the
Company. While the precise impact of the COVID-19 virus on the
Company remains unknown, rapid spread of the COVID-19 virus may
continue to have a material adverse effect on global economic
activity, and may continue to result in volatility and disruption
to global supply chains, operations, mobility of people and the
financial markets, which could affect interest rates, credit
ratings, credit risk, inflation, business, financial conditions,
results of operations and other factors relevant to the Company.
Please refer to the risk factors identified in the Company's annual
information form for the year ended December 31, 2019 and
management's discussion and analysis for the year ended December
31, 2020 and for the three and nine months ended September 30, 2020
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: This press release contains metrics
commonly used in the oil and natural gas industry, such as netback,
OOIP, finding and development costs, recycle ratio, reserve life
index and net asset value.
"Netback" equals total petroleum sales less quality discount,
lifting costs, transportation costs and royalty payments calculated
on a bbl basis.
"OOIP" is equivalent to total petroleum initially-in-place
("TPIIP"). TPIIP, as defined in the COGE Handbook, is that quantity
of petroleum that is estimated to exist in naturally occurring
accumulations. It includes that quantity of petroleum that is
estimated, as of a given date, to be contained in known
accumulations, prior to production, plus those estimated quantities
in accumulations yet to be discovered. A portion of the TPIIP is
considered undiscovered and there is no certainty that any portion
of such undiscovered resources will be discovered. If discovered,
there is no certainty that it will be commercially viable to
produce any portion of such undiscovered resources. With respect to
the portion of the TPIIP that is considered discovered resources,
there is no certainty that it will be commercially viable to
produce any portion of such discovered resources. A significant
portion of the estimated volumes of TPIIP will never be
recovered.
"Finding and development costs" are calculated as the sum of
field capital plus the change in future development costs for the
period divided by the change in reserves that are characterized as
development for the period. Finding and development costs take into
account reserves revisions during the year on a per boe basis. The
aggregate of the exploration and development costs incurred in the
financial year and changes during that year in estimated future
development costs generally will not reflect total finding and
development costs related to reserves additions for that year.
"Recycle ratio" is measured by dividing the netback for the
applicable period by finding and development cost per boe for the
year. The recycle ratio compares netback from existing reserves to
the cost of finding new reserves and may not accurately indicate
the investment success unless the replacement reserves are of
equivalent quality as the produced reserves.
"Reserve life index" is calculated as total Company interest
reserves divided by annual production.
"Net asset value" is based on present value of future net
revenues discounted at 10% before tax on reserves, net of estimated
net debt at year end divided by the basic shares outstanding at
year end.
These terms have been calculated by management and do not have a
standardized meaning and may not be comparable to similar measures
presented by other companies, and therefore should not be used to
make such comparisons. Management uses these oil and gas metrics
for its own performance measurements and to provide shareholders
with measures to compare PetroTal's operations over time. Readers
are cautioned that the information provided by these metrics, or
that can be derived from the metrics presented in this press
release, should not be relied upon for investment or other
purposes.
OIL REFERENCES: All references to "oil" or "crude oil"
production, revenue or sales in this press release mean "heavy
crude oil" as defined in National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities.
FOFI DISCLOSURE: This press release contains future-oriented
financial information and financial outlook information
(collectively, "FOFI") about PetroTal's prospective results of
operations, production, NPV-10, future net revenue, future
development and abandonment costs, 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
NI 51-101.
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
London Stock Exchange. RNS is approved by the Financial Conduct
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
STRUSONRAOUUURR
(END) Dow Jones Newswires
February 24, 2021 02:00 ET (07:00 GMT)
Petrotal (LSE:PTAL)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Petrotal (LSE:PTAL)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024