TIDMPTAL
RNS Number : 8950K
PetroTal Corp.
07 January 2021
PetroTal Q4 2020 Operations Update
Current Oil Production at 9,500 bopd with the ONP pipeline fully
operational and Brazil export viability confirmed
Calgary, AB and Houston, TX - January 7, 2021-PetroTal Corp.
("PetroTal" or the "Company") (TSX--V: TAL and AIM: PTAL) is
pleased to announce that following the recommencement of operations
of Petroperu's Northern Oil Pipeline ("ONP"), oil production at the
Bretana oil field is currently at 9,500 barrels per day ("bopd")
and expected to reach 10,000 bopd in the next few days. Total oil
production for 2020 was 2.08 million barrels (5,675 bopd), as
compared to 1.5 million barrels (4,131 bopd) in 2019. All amounts
herein are in United States dollars ("US$") unless otherwise
stated.
Highlights
-- Total oil produced in 2020 was 2.08 million barrels (5,675
bopd), significantly impacted by the Covid-19 pandemic and ensuing
social unrest;
-- 59% of the 2020 oil production was produced during the first
four months of the year, before the pandemic forced Petroperu to
shut down the ONP in early May 2020;
-- In December 2020, the Company successfully completed a
106,000 barrel FOB Bretana pilot oil export via Brazil, and is
preparing for a second pilot of 200,000 barrels during February
2021;
-- The successful initial Brazil export pilot, as well as the
storage of produced oil in contracted barges, allowed the Company
to produce 590,000 barrels in the fourth quarter ("Q4") of 2020,
even with the ONP shut down during the entire quarter;
-- With the ONP now fully operational, production from the
Bretana oil field is currently 9,500 bopd and is expected to reach
10,000 bopd in the next few days;
-- As a result of higher oil prices, the Company's contingent
derivative liability was reduced to $2.7 million at December 31,
2020; and,
-- At year-end 2020 the Company had cash resources of approximately $9.6 million.
Petroperu Pipeline Operations
Petroperu announced on January 3, 2021 that they had completed
their assessment of the pump stations and the ONP, including the
area of the ONP that required an inspection, and that the ONP is
now fully operational. Pump Station No.1, at Saramuro, started
pumping oil towards Pump Station No.5 on December 28, 2020 allowing
the Company to unload, before the end of the 2020, 38,000 barrels
of the 131,300 barrels of oil stored in six contracted barges at
Saramuro, with the remaining 93,300 barrels unloaded during the
first week of January. All oil unloaded at Pump Station No.1 is
invoiced to Petroperu at the beginning of each following month. The
Petroperu announcement can be found at:
(
https://www.petroperu.com.pe/petroperu-reinicia-operacion-del-oleoducto-norperuano?pdf=1
).
2020 Oil Production
The Company achieved annual oil production for 2020 of 2.08
million barrels (5,675 bopd), as compared to annual oil production
in 2019 of 1.5 million barrels (4,131 bopd). The Bretana oil field
was shut in for a total of 121 days as a result of the Peruvian
government health department-directed Covid-19 related shut in (71
days) and subsequent social disruption (50 days). Considering the
need to also constrain production during this period, PetroTal had
to shut in or constrain production for approximately 47% of
2020.
For Q4 2020, PetroTal produced throughout the quarter, although
at constrained rates in order to manage market availability to
deliver oil to the Iquitos refinery, the ONP, the successful
106,000 barrel pilot Brazilian export, and ultimately store oil in
the Company's tanks and contracted barges prior to delivery.
Average oil production from the Bretana oil field in Q4 2020 was
6,413 bopd, compared to 2,444 bopd for Q3 2020, and 7,757 bopd for
Q4 2019.
At December 31, 2020, PetroTal held 29,700 barrels of oil in its
tank inventory and 133,300 barrels of oil in contracted barges,
comprising 93,300 barrels awaiting delivery into the ONP at
Saramuro and 40,000 barrels on their way to the Iquitos Refinery.
The barges have now completed delivery of this oil to the ONP and
Iquitos.
Contingent Derivative Liability
At November 30, 2020, the contingent liability was $16.6 million
and, upon imminent document approval by Petroperu, will be
structured into a three-year payment arrangement. Additional
amendments to the sales agreements will, among other things, result
in placement of hedges for the 1.8 million barrels of oil in the
pipeline network to ensure that the realized price is based on the
respective forecasted Brent oil prices to protect from any oil
price downside until the barrels are ultimately sold.
As a result of higher oil prices, the Company's contingent
derivative liability relating to oil sold to Petroperu was reduced
to $2.7 million at December 31, 2020. The contingent liability
relates to the timing difference between when Petroperu provides an
initial payment for the oil and when the final settlement price is
calculated. The amount of the ultimate liability will be
crystallized when the oil is sold by Petroperu, which is expected
to commence in February 2021, with further cargos until the end of
Q2 2021.
Liquidity Update
At December 31, 2020, PetroTal had cash resources of
approximately $9.6 million, with accounts payable and accrued
liabilities of approximately $44.3 million, an increase of $4.0
million from September 30, 2020. Ongoing payments will be managed
from expected oil field revenues and internal cash resources.
Pursuant to contractual terms with our suppliers, approximately
$12.6 million, (28%) are not due until after Q1 2021.
The Company continues to work towards finalizing a significant
credit facility to support the planned capital program and a return
to development drilling at the Bretana oil field.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive
Officer, commented:
"We are pleased to have returned to normalized Bretana oil field
operations and reliable pipeline operations. We are also pleased
that the initial Brazil export pilot was a success, and we are
already preparing for a second pilot of 200,000 barrels during
February 2021. This will ultimately benefit all parties and help to
encourage continued investment in Peruvian oil field developments.
On behalf of PetroTal, I would like to recognize the support of the
indigenous communities, Petroperu and the Peruvian government, to
ensure that a solid investment proposition exists in Peru and the
ongoing investment that benefits Peru. Additionally, I would like
to thank our shareholders for their continued support, along with
the dedication of the PetroTal team."
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; increased oil production volumes due to the reopening of
the Bretana oil field and resumption of oil production therefrom;
the effects and duration of the Funding Agreement; PetroTal's plans
regarding community support, the environmental and corporate
governance; and the ongoing effects of Covid-19 on the Company and
its employees. 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 reopening of existing
infrastructure, its ability to deliver production and the
anticipated capital expenditures associated therewith; successful
implementation of the Decree; prevailing commodity prices and
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; exchange rates; the application of
regulatory and licensing requirements; current legislation; the
success of future drilling and development activities; and general
economic
conditions. 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. 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 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.
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
UPDBRMFTMTJMMTB
(END) Dow Jones Newswires
January 07, 2021 02:00 ET (07:00 GMT)
Petrotal (LSE:PTAL)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Petrotal (LSE:PTAL)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024