TIDMPTAL
RNS Number : 1500Q
PetroTal Corp.
16 October 2023
PetroTal Announces Q3 2023 Operations and Liquidity Update
Quarterly production of 10,909 bopd in Q3 2023
Exit unrestricted cash liquidity of US$94 million on September
30, 2023
Calgary, AB and Houston, TX - October 16, 2023-PetroTal Corp.
("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX:
PTALF) announces the following operational and corporate
updates.
Q3 2023 Production
PetroTal achieved production of 10,909 barrels of oil per day
("bopd") in Q3 2023 and is currently producing around 12,500 bopd.
Production was lower than our guided 13,500 bopd as it was
negatively impacted by lower than expected river levels that
reduced barge capacity for the Brazil route exports. On a year to
date basis ending September 30, 2023, the Company has produced
approximately 14,040 bopd, which is inside full year production
guidance range.
Alternative Sales Route Update
The Company is pleased to announce the commencement of its pilot
oil sales shipment through the OCP Ecuador pipeline ("OCP") in
early November with the support of the Ecuadorian government.
PetroTal plans to sell 100,000 barrels of crude into the OCP for
eventual arrival at Esmeralda's port. The route involves
approximately 1,000 km of river travel and approximately 115 km of
trucking to the OCP terminal and will eventually generate similar
netbacks to the Company's Brazil and Iquitos routes. The Company
has also completed the contracting of service companies that will
carry out the pilot shipment and trucking to the OCP terminal.
PetroTal estimates completion of the shipment prior to the end of
2023, subject to the outcome of logistical activities that are
being tested. In parallel with the OCP pilot, the Company is
investigating other possible options for material sales route
expansion.
Q4 and Full Year 2023 Production Guidance
River levels are lower compared to the 2022 dry season and will
continue to impact October and November 2023 guided production
levels. This will delay the Company's estimated production ramp up
and as a result, the Company is now guiding Q4 2023 production
between 14,000 and 14,500 bopd and full year 2023 guidance now near
the lower range of 14,000 to 15,000 bopd assuming the river levels
recover in December 2023.
Operational Update
The installation of the L2 West Platform is underway and
expected to be completed near the end of October 2023. PetroTal
expects to commence drilling well 16H in early November 2023 with
first production estimated early in 2024.
PetroTal's other main sales route, the Northern Peruvian
Pipeline ("ONP"), continues to be shut down. The Company expects
that once the Talara refinery is fully commissioned and running as
planned, there could be progress towards reactivation of the ONP.
Additionally, PetroTal notes that Peru's Public Ministry has taken
action and captured members of the criminal group named Los Crudos,
that had been involved in pipe cuts that sabotaged ONP operations
for the past couple of years.
Cash and Liquidity Update
PetroTal exited Q3 2023 in a strong position with approximately
$94 million of unrestricted cash and $19 million of restricted cash
for a total of $113 million. 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. During Q3 2023, the Company purchased 5.6
million shares at an average price of US$0.55/share pursuant to the
share buyback program, and paid dividends of US$23 million
(US$0.025/share) on September 15, 2023 related to Q2 2023
operations. Accounts receivable of approximately $67 million are
contractually current, with accounts payable of approximately $55
million, primarily due within the next 50 days.
Q3 2023 Webcast Link for November 13, 2023
Please join the Company for its Q3 2023 webcast on November 13,
2023 at 9am CT (Houston).
https://stream.brrmedia.co.uk/broadcast/650d4b6b39ad9f961be9caad
Manuel Pablo Zuniga-Pflucker, President and Chief Executive
Officer, commented:
"The Company is pushing extremely hard to meet guidance in 2023
despite a more severe dry season seen compared to last year on the
Peruvian side. When river levels permit, the field is capable of
producing in excess of 22,000 bopd, shipping monthly volumes to
Brazil of 600,000 barrels (20,000 bopd) and well over 60,000
barrels per month (2,000 bopd) to Iquitos until we get our other
sales initiatives commercialized. In addition, we will begin the
pilot to the Ecuadorian OCP shortly, which will activate another
2,000 to 4,000 bopd of regular offtake when normalized and
optimized. Subsequently, by mid 2024, we expect to activate the
Yurimaguas route which could add up to 5,000 bopd of additional
sales capacity.
PetroTal remains in a strong financial position. With $94
million unrestricted cash and $19 million of restricted cash, we
will continue with our plans to return capital to investors via
dividends and share buybacks for the foreseeable future."
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
22,000 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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END
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