PetroTal Announces Q4 2024
Operations and Financial Updates
Calgary, AB and Houston, TX -
January 9, 2025-PetroTal
Corp. ("PetroTal" or the
"Company") (TSX: TAL, AIM:
PTAL and OTCQX: PTALF) is pleased to provide the following
operational and financial updates. All amounts are in US dollars
unless stated otherwise.
Key
Highlights
·
PetroTal corporate production averaged
approximately 19,150 bopd in Q4 2024, including volumes from the
recently acquired Block 131
·
Bretana Q4 2024 production averaged 18,938 barrels
of oil per day (bopd), a 27% increase on Q4 2023
·
Bretana 2024 annual production averaged 17,733
bopd, a 24% increase on 2023, and above guidance of 16,500 - 17,500
bopd
·
Total cash of $115 million as of December 31,
2024, a 3% increase on Q4 2023
·
PetroTal secures two Technical Evaluation
Agreements (TEA's) surrounding Block 131 in Peru
·
PeruPetro extends current exploration period for
Block 107 to February 2027
Manuel Pablo Zuniga-Pflucker,
President and Chief Executive Officer, commented:
"PetroTal finished 2024 on a strong note, with production from
our Bretana field hitting new highs in Q4. We ended the year with a
cash balance of $115 million, which puts the Company in a good
position to support its ongoing dividend and capital programs in
2025.
I
am pleased to announce that PetroTal has been granted two new
Technical Evaluation Agreements in Peru's Ucayali Basin,
immediately surrounding and on trend with our recently acquired
Block 131. Several exploration prospects have already been
identified on existing seismic coverage, setting up a new
high-potential core area for the Company in central
Peru.
PeruPetro has updated the current exploration period for Block
107 to February 2027, after reviewing the force majeure periods,
which will give us ample time to undertake an exploration program
at the high-impact Osheki-Kametza prospect. Peru's oil industry is
open for business, and we continue to see plenty of interesting
business development opportunities in the
country.
We
are in the final stages of approving our 2025 budget and guidance
update and look forward to providing more details on January 16.
PetroTal delivered on its growth and return of capital objectives
in 2024, and we will continue to deliver for investors in
2025."
Q4
2024 Production Update
PetroTal's production averaged
approximately 19,150 bopd in Q4 2024, a new record for the Company.
This total includes 18,938 bopd from the Bretana field at Block 95,
and a quarterly average contribution of 212 bopd from the Los
Angeles field at Block 131, where PetroTal holds a 100% WI in
production from the closing date of its acquisition on November 29,
2024.
Following the conclusion of the
annual dry season in early October, PetroTal's operations team
responded quickly to rising river levels, restoring Bretana field
production to capacity by October 15. As a result, Bretana's Q4
2024 quarterly average production increased 25% compared to the
prior quarter, and 28% compared to Q4 2023.
2024 annual average production from
the Bretana field was 17,733 bopd, slightly above the high end of
PetroTal's guidance range of 16,500 to 17,500 bopd, and an increase
of 24% compared to the 2023 annual average of 14,248 bopd.
According to public production data from PeruPetro, fiscalized Los
Angeles field production averaged 784 bopd in 2024, and 624 bopd in
Q4 2024.
Since the closing of the acquisition
of Block 131 on November 29, 2024, PetroTal has been operating the
asset under the name "Ucawa Energy". As a result, public disclosure
from Peruvian regulators relating to Block 131 may include this
corporate name, which is a wholly owned subsidiary of PetroTal
Corp.
Drilling & Completion Update
As previously announced with Q3 2024
results, PetroTal completed well 21H at Bretana on November 9. This
well was brought onstream on November 17 at a flush production rate
of 7,144 bopd, before producing at an average rate of 2,522 bopd
over the next 30 days. PetroTal spudded well 22H at Bretana on
November 12; this well was completed ahead of schedule on December
19, in-line with budget expectations at $12.0 million. The Company
will provide an update on initial flow rates once the well has been
onstream for at least 30 days.
PetroTal spudded well 23H at Bretana
on December 23. This well is expected to be completed by the end of
January 2025, at which point the Company plans to release its
current drilling rig and pause the Bretana development drilling
program. As previously contemplated when PetroTal announced an
acceleration of its capital program with Q2 2024 results in August
2024, flush production from wells 22H and 23H will be used to
manage field output in-line with installed fluid handling capacity
throughout H1 2025.
Cash & Liquidity Update
PetroTal ended 2024 in a healthy
liquidity position, exiting the year with total cash of
approximately $115 million, of which $103 million was unrestricted.
This compares to total cash of $133 million at the end of Q3 2024,
and $111 million at the end of 2023. PetroTal ended the year with
accounts payable and receivable of $88 million and $85 million,
respectively.
During Q4 2024, PetroTal continued
preparatory work for its erosion control project. Recall that
PetroTal's Q3 2024 financial results included a $7.3 million
inventory provision for the purchase of steel components related to
this project. These components will be recorded as an operating
expense in Q4 2024. Q4 2024 also included the previously announced
acquisition of Block 131, which closed on December 1. Cash
consideration of $6.1 million for this asset was essentially offset
by the assumption of a cash balance of $5.9 million on closing.
This cash balance reflects the cumulative cash flow from this asset
between the effective date of the acquisition on January 1, 2024,
to its closing date on November 29, 2024.
Pursuant to its ongoing share
buyback program, PetroTal repurchased 1.5 million shares in Q4
2024, at an average price of US$0.46/share. The Company also paid a
dividend of $13.7 million (US$0.015/share) on December 13, 2024,
related to Q3 2024 operations.
Exploration Update
PetroTal signed a contract extension
with PeruPetro for the exploration Block 107, in Peru's Ucayali
Basin, in December 2024. This extension of the Fifth Exploration
Period, which was granted to account for force majeure periods in
the interim, will now last until February 2027, providing ample
time to undertake an exploration program at the Osheki-Kametza
prospect.
PetroTal also signed two Technical
Evaluation Agreements (TEA's) with PeruPetro in December 2024. The
TEA's for Blocks XCVII and XCVIII are located in the vicinity and
on trend with PetroTal's Block 131, as well as the Aguaytia and
Agua Caliente fields in Peru's Ucayali Basin. These new evaluation
contracts offer growth potential in proven exploration acreage near
our existing operations in the Ucayali Basin. Blocks XCVII and
XCVIII include acreage that was previously relinquished from the
present-day Block 131 and contain several drillable prospects and
leads identified with existing 2D seismic coverage in the producing
Cushabatay light oil play. Contractual commitments will be executed
in two 12-month phases, and mainly include geological and
geophysical studies such as seismic imaging, geochemical modelling
and hydrocarbon potential evaluation reports. The TEA's also grant
PetroTal the option to convert the blocks to exploration licenses
within the next 24 months.
2025 budget guidance webcast link for January 16,
2025
PetroTal will host a webcast
following its 2025 budget and guidance release on Thursday January
16, 2025 at 9am CT (Houston), 3pm GMT (London). Please see the link
below to register.
https://brrmedia.news/PTAL_CB25
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 the
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.sedarplus.ca,
or below:
Camilo McAllister
Executive Vice President and Chief
Financial Officer
Cmcallister@PetroTal-Corp.com
T: (713) 253-4997
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
UNAUDITED FINANCIAL INFORMATION:
Certain financial and operating results included in this press
release, including production information, total cash, accounts
payable and accounts receivable, are based on unaudited estimated
results. These estimated results are subject to change upon
completion of the Company's audited financial statements for the
year ended December 31, 2024, and changes could be
material.
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 production capacity; PetroTal's drilling, completions and
other activities; exploration activities at Block 107. 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", "intend" and
similar expressions. The forward-looking statements provided in
this press release are based on management's current belief, based
on currently available information, as to the outcome and timing of
future events. 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 to obtain and
maintain necessary permits and licenses, the ability of government
groups to effectively achieve objectives in respect of reducing
social conflict and collaborating towards continued investment in
the energy sector, 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. PetroTal cautions that
forward-looking statements relating to PetroTal are subject to all
of the risks, uncertainties and other factors, which may cause the
actual results, performance, capital expenditures or achievements
of the Company to differ materially from anticipated future
results, performance, capital expenditures or achievement expressed
or implied by such forward-looking statements. Factors that
could cause actual results to differ materially from those set
forth in the forward-looking statements 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),
business performance, legal and legislative
developments including changes in tax laws and 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, credit ratings and risks, fluctuations in
interest rates and currency values, changes in the financial
landscape both domestically and abroad, including volatility in the
stock market and financial system, wars (including Russia's war in
Ukraine and the Israeli-Hamas conflict),
regulatory developments, 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, changes in the financial
landscape both domestically and abroad (including volatility in the
stock market and financial system) and the occurrence of
weather-related and other natural catastrophes. Readers are
cautioned that the foregoing list of factors is not exhaustive.
Please refer to the annual information form for the year ended
December 31, 2023 and the management's discussion and analysis for
the three months ended September 30, 2024 for additional risk
factors relating to PetroTal, which can be accessed either on
PetroTal's website at www.petrotal-corp.com
or under the Company's profile on
www.sedarplus.ca.
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 National Instrument
51-101 - Standards of Disclosure for Oil and Gas Activities ("NI
51-101").
SHORT TERM RESULTS: References in
this press release to peak rates, initial production rates, current
production rates, 30-day 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 of
PetroTal. The Company cautions that such 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 and production results, cash
position, liquidity 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 and its management believe that FOFI has been
prepared on a reasonable basis, reflecting management's best
estimates and judgments, and represent, to the best of management's
knowledge and opinion, the Company's expected course of action.
However, because this information is highly subjective, it should
not be relied on as necessarily indicative of future results.
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. Changes in forecast
commodity prices, differences in the timing of capital
expenditures, and variances in average production estimates can
have a significant impact on the key performance measures included
in PetroTal's guidance. The Company's actual results may differ
materially from these estimates.