TIDMPTAL
RNS Number : 1359U
PetroTal Corp.
27 July 2020
PetroTal announces restart of production at Bretana oil
field
Initial production rates of over 12,000 bopd
Calgary and Houston - July 27, 2020-PetroTal Corp. ("PetroTal"
or the "Company") (TSX--V: TAL and AIM: PTAL) is pleased to provide
an update on operations at the Bretana oil field which, as
previously indicated, recommenced in mid-July.
Highlights
-- PetroTal has implemented stringent testing measures and
modified operating procedures to ensure the safety of its
workers;
-- The Bretana field restarted operations on July 15(th) , 2020
and production has returned to pre-shutdown levels of 11,500
barrels of oil per day ("bopd") , exceeding 12,000 bopd when all
seven wells are online;
-- Oil deliveries have commenced to the Iquitos refinery and
deliveries to the Northern Oil Pipeline ("ONP") at the Saramuro
Pump Station are expected to commence in early August 2020;
and,
-- Q2 2020 production was approximately 4,180 bopd. Taking into
account the field was shut-in since early May 2020, average Q2 2020
production for the period the oil field was producing represented
approximately 11,500 bopd.
Bretana Oil Field
On May 7, 2020, PetroTal announced that it had temporarily shut
in the Bretana oil field operations in response to a directive
issued by the Peruvian government's health department related to
COVID-19 prevention, that resulted in the operator of the ONP
(Petroperu) having to shut down pipeline operations. The Breta na
oil field was producing approximately 11,500 bopd prior to being
shut in. PetroTal used this period to perform maintenance
operations and effected improvements to the production
facilities.
In anticipation of the re-opening of the ONP, Bretana oil
production recommenced on July 15, 2020 and achieved over 12,000
bopd when all seven wells were online.
Crude oil production is the basis for royalty calculation
purposes by Perupetro, the Peruvian government agency responsible
for collecting the royalty payments, and such volumes are reported
on its website:
https://www.perupetro.com.pe/wps/wcm/connect/corporativo/7318e1ef-aaa2-4c91-8313-7d2090cba5fa/Producci%C3%B3n+l%C3%ADquidos.pdf?MOD=AJPERES&liquidos
.
The website reports all crude oil production in Peru, of which
the Block 95 reference is the Bretana oil field. The reported crude
oil volumes do not include the approximately 4% of natural gasoline
blended into the Bretana crude oil to meet the required viscosity
specifications, especially those at the ONP; hence oil sales
volumes are slightly larger than the crude oil volumes reported by
Perupetro.
Oil deliveries have already commenced to the Iquitos refinery
and approximately 40,000 barrels are expected be delivered during
July 2020.
Oil is being barged to the Saramuro Pump Station ready to be
delivered into the ONP immediately at its recommencement of its
operations, expected in early August 2020. To manage the Company's
inventory and barge storage capacity, Bretana production has been
reduced to approximately 8,000 bopd pending the restart of the
pipeline.
Workforce and Community Safety
PetroTal has implemented a stringent COVID-19 safety protocol,
which has been reviewed and approved by PetroTal's HSE-CSR Board
Committee as well as Peru's Health Ministry. PetroTal's protocol
includes appropriate distancing, use of facemasks at all times,
temperature checks three times a day, rapid tests before entering
the field and then in Bretana camp every three days, each person
having their own room, constant disinfection of all spaces, and a
doctor and two nurses on location to supervise. While the workers
from the Bretana community stay at the camp during their rotation,
the crew of all oil transport barges do not enter the camp, though
they are subjected to the same protocol every time a vessel arrives
at Bretana.
Annual General Meeting
PetroTal will hold its annual general and special meeting of
shareholders ("AGM") on September 9, 2020. Meeting materials for
the AGM will be mailed this week. Further AGM details will be
provided in subsequent announcements.
Manolo Zuniga, President and Chief Executive Officer,
commented:
"On behalf of PetroTal, I would like to thank the 30 person team
that stayed at Bretana during the shut down and ensured all the
facilities were properly maintained, which is reflected by how
quickly the new 130 person team was able to re-open the oil wells,
recommence construction support activities and again reach 12,000
bopd of production. Our commitment is to ensure all stakeholders
benefit from the Bretana project, including the local communities
that support our Company."
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 Bretana
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 with more than 10,000 bopd of production.
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 contact:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manuel Pablo Zuniga-Pflucker
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; anticipated future production and production capacity;
the Company's ability to remain operating in accordance with
developing public health efforts to contain COVID-19; future
development and growth prospects; and the timing of the AGM. 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, inventory and barge storage capacity, 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. 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 three months
ended March 31, 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.
FOFI DISCLOSURE: This press release contains future--oriented
financial information and financial outlook information
(collectively, "FOFI") about PetroTal's prospective results of
operations, production, production storage capacity, royalties 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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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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