TIDMPTAL
RNS Number : 3470Y
PetroTal Corp.
12 May 2021
PetroTal Provides an Operational and Corporate Update
7D well completed, currently flowing at 4,550 bopd
Management Change Announcement, Q1 2021 reporting and AGM
dates
Calgary, AB and Houston, TX - May 12, 2021 - PetroTal Corp.
("PetroTal" or the "Company") (TSXV: TAL and AIM: PTAL) is pleased
to announce the following operational and corporate update. All
currency amounts are in United States dollars ("USD"), unless
otherwise stated.
Highlights
- The 7D well has been successfully drilled and completed,
flowing at an initial rate of approximately 3,700 barrels of oil
per day (bopd) during its first 10 days of production, and has
averaged approximately 4,550 bopd during the past three days;
- The 7D well was drilled and completed in 33 days for a cost of
approximately $8.6 million, 7% under the $9.2 million estimate;
- During the past three days, Bretana oil field production has
averaged approximately 11,100 bopd. Two wells, representing 1,200
bopd, are currently shut in awaiting increased water injection pump
enhancements;
- The 3WD water disposal well commenced drilling on May 3, 2021;
- Mr. Estuardo Alvarez-Calderon, PetroTal's VP Exploration and
Development, is retiring at the end of May 2021. Mr. Dewi Jones has
assumed the role of VP Exploration and Development as of May 11,
2021;
- Q1 2021 financial and operating results will be announced on
May 31, 2021 along with an updated corporate presentation, and a
webcast virtual call on June 1, 2021; and,
- PetroTal will host a virtual AGM on June 23, 2021.
Well 7D Update
PetroTal has successfully completed the 7D well, the Company's
seventh in the Bretana oil field, and first new well of 2021. The
well was a deviated hole and penetrated the targeted Vivian
formation in excellent quality sands. Total vertical depth of 2,696
meters was reached. The well achieved an initial 10-day average
flow rate of 3,700 bopd, which was in line with management's
expectations, and is currently producing approximately 4,550 bopd.
Total drilling time was 33 days and the well cost approximately
$8.6 million, 7% under the $9.2 million estimate. This was the
first well executed under PetroTal's enhanced COVID-19 safety
protocols and no safety issues were encountered during the
operation.
The 7D well sets the stage for the Company to again grow
production, with the field currently averaging approximately 11,100
bopd, and the goal of ending 2021 at 18,000 to 19,000 bopd. Overall
field production would be approximately 12,300 bopd, inclusive of
two wells, representing approximately 1,200 bopd, currently shut in
to accommodate water injection enhancements.
3WD Water Disposal Well
The next well, 3WD, commenced drilling on May 3, 2021 and will
take approximately 41 days to drill and complete. The Vivian
reservoir will be cored, providing important reservoir
characterization data for future field development. This future
water disposal well will enable the disposal of an additional
50,000 barrels of water per day and will accommodate the Company's
expected production growth for at least the following fourteen
months.
VP Exploration and Development Change
Effective May 11, 2021 the Company is pleased to announce the
appointment of Mr. Dewi Jones to VP Exploration and Development.
Mr. Jones is a geologist with over 35 years of experience in Peru
and other Latin American basins. Mr. Jones started his career with
Occidental Petroleum in Colombia and has also led technically
complex development programs for Repsol, Talisman and Pioneer. Mr.
Jones was formerly CEO of CGX Energy, having exploration blocks in
Guyana adjacent to Exxon's Liza discovery. Mr. Jones is a graduate
of Louisiana State University with a B.Sc. in Geology. Prior to
this appointment, Mr. Jones was the Director of Exploration and
Development with PetroTal and collaborated with Mr.
Alvarez-Calderon on many technical aspects over recent months,
ensuring a smooth transition of knowledge and culture.
Effective May 31, 2021, Mr. Estuardo Alvarez-Calderon will
retire from the Company. Mr. Alvarez-Calderon was instrumental in
leading PetroTal from a technical perspective, taking PetroTal from
zero to over 13,000 bopd in late 2019 and identifying numerous
leads and prospects in both Blocks 95 and 107 for continued organic
growth. The Company thanks Mr. Alvarez-Calderon for his significant
contributions to PetroTal and wishes him a well-earned and restful
retirement.
AGM Update and Q1 2021 Results
PetroTal will release its Q1 2021 financial and operating
results on May 31, 2021 to be followed by a webcast presentation on
June 1, 2021. Details for the event will be announced over the
coming weeks. An updated corporate presentation will also be
released.
PetroTal advises that its annual general and special meeting of
shareholders will be held via webcast on June 23, 2021 at 10:00
a.m. (Calgary time). Details of the agenda and a link to the
meeting will be included in the Company's management information
circular to be mailed to registered shareholders and SEDAR filed on
May 24, 2021.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive
Officer, commented:
"On behalf of the PetroTal team, I would like to personally
thank Estuardo for his contributions to the Company. Estuardo's
achievements in his career and at PetroTal have been remarkable and
his presence in the office will be missed. I am very excited about
Dewi Jones stepping in to fill Estuardo's role. Dewi has been
working with PetroTal for some time and the entire management team
has a deep trust and confidence in his work and experience.
It is very exciting as a management team to be bringing the new
7D well on for the Company after almost a year lag from completion
of the 6H well. The stabilized flow rates of approximately 4,550
bopd look very promising and are in line with our technical
estimates. Continuing with our development plan, we commenced
drilling the 3WD well that will greatly increase our water disposal
capacity."
Qualified Person's Statement
Dewi Jones, the Company's VP, 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. Jones received a Bachelor of Science degree in Geology from
Louisiana State University (LSU) and is registered on the Texas
Board of Professional Geoscientists.
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. 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 Bretana 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
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
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, completions, workovers and other 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; drilling plans including the timing of drilling; oil
production levels; COVID-19 surveillance and control process;
future development and growth prospects; and the timing of Q1 2021
filings. 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, 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 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 (including volatility of the Peruvian Sol),
legal, political and economic instability in Peru (including in
respect of the Peruvian election), 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, 2020 and
management's discussion and analysis for the year ended December
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.
OIL AND GAS INFORMATION: References in this press release
initial 10 days of production, average flow rate 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 for PetroTal. The Company cautions that the such results
should be considered to be preliminary.
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").
FOFI DISCLOSURE: This press release contains future-oriented
financial information and financial outlook information
(collectively, "FOFI") about PetroTal's prospective results of
operations, production and production capacity, 2021 capital
program and budget 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.
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