PetroTal Announces Q1 2024
Operations and Corporate Updates
23% increase in
production Quarter over Quarter, to 18,518 bopd
Unrestricted cash liquidity
of $63 million at March 31, 2024
Calgary, AB and Houston, TX -
April 11, 2024-PetroTal
Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX:
PTALF) announces the following operational, financial and corporate
updates. All amounts are in US dollars unless stated
otherwise.
Q1
2024 Production
PetroTal achieved average production
of 18,518 barrels of oil per day ("bopd") in Q1 2024, in line with
guidance. This represents an increase of approximately 23%
and 54% from Q4 2023 and Q1 2023, respectively. Production
during the past 30 days has averaged approximately 20,500
bopd.
Operations
During Q1 2024, following favorable
river levels, the Company delivered its planned sales through the
Brazil and Iquitos routes. PetroTal's recently drilled 17H
well commenced production on March 1, 2024, and has produced at a
rate of approximately 4,000 bopd during its first 30 days
online. Since the electro submersible pump was activated two
weeks ago, the well has delivered a rate of approximately 4,500
bopd, in line with the Company's expectations.
Currently, PetroTal is continuing
with its 2024 development program, and is drilling well 18H, which
is expected to commence production in May
2024.
Erosion Control Update
The Company is progressing its
preventive erosion control program aimed at protecting the Bretana
oilfield and nearby community. PetroTal expects to commence
project construction in mid to late Q3 2024; while permitting is
ongoing, detailed engineering is being finalized, and long lead
items are being procured.
Cash and Liquidity Update
PetroTal exited Q1 2024 in a strong
position with approximately $63 million of unrestricted cash and
$22 million of restricted cash for a total of $85 million at March
31, 2024. Restricted cash includes amounts reserved for the
social trust funds to be deposited at a later date. Cash
liquidity decreased from year end 2023 levels as a result of
increased capital expenditures from drilling program commencement
in Q1 2024, March 15, 2024 dividend distribution and revenue
payments received in early April. During Q1 2024, the Company
purchased 4.7 million shares at an average price of US$0.58/share
pursuant to the share buyback program, and paid dividends of $18.4
million (US$0.02/share) on March 15, 2024, related to Q4 2023
operations. At the end of Q1 2024, accounts receivable and
accounts payable of approximately $111.7 million and $73.6 million
(due within 50 days) respectively, were outstanding.
Q1
2024 results webcast link for May 9, 2024
PetroTal will host a webcast for its
Q1 2024 results on May 9, 2024 at 9am CT (Houston), 3pm BST
(London). Please see the link below to register.
https://stream.brrmedia.co.uk/broadcast/660bc6a92eae5d4dcf2e6319
Manuel Pablo Zuniga-Pflucker,
President and Chief Executive Officer, commented:
"The Company achieved its strongest annual start to a year in
PetroTal's history generating quarterly average production of over
18,500 bopd. Q1 2024 liquidity was as expected with the
Company receiving an average oil price above its 2024 guidance of
$77/bbl Brent, bolstering Q1 2024 financial and operational
metrics.
The two recently completed horizontal wells bring our well
count to 18 oil producers, setting the stage for record first half
and annual production. This will allow us to continue
returning capital to our shareholders while growing the
Company."
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.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 20,000
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.