TIDMPTAL
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
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 , 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
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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