PetroTal Announces Q3 2024
Financial and Operating Results
Q3 2024 average sales and
production of 14,760 bopd and 15,203 bopd,
respectively
Generated Q3 2024 EBITDA of $47.5
million
Exited the quarter with $133
million in total cash
Declaring dividend of
$0.015/share payable December 13, 2024
Calgary, AB and Houston, TX -
November 14, 2024 -
PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or
the "Company") is pleased to report its operating and financial
results for the three and nine months ended September 30,
2024.
Selected financial and operational
information is outlined below and should be read in conjunction
with the Company's unaudited consolidated financial statements and
management's discussion and analysis ("MD&A") for the three and
nine months ended September 30, 2024, which are available on SEDAR+
at www.sedarplus.ca and
on the Company's website at www.PetroTal‐Corp.com.
All amounts herein are in United States dollars unless otherwise
stated.
Selected Q3 2024 Highlights
· Average Q3 2024 sales and production of 14,760 and 15,203
barrels ("bbls") of oil per day ("bopd"), respectively;
· Despite record low river levels on PetroTal's primary export
route, production volumes were 39% higher than the same period last
year (10,909 bopd) and 17% ahead of previous Q3 guidance (13,000
bopd);
· Generated Q3 2024 EBITDA(1) and free funds
flow(1) of $47.5 million ($35.00/bbl) and $6.5
million ($4.82/bbl), respectively;
· Capital expenditures ("Capex") totaled $43.0 million in Q3
2024, primarily associated with the drilling of wells 5WD and
20H;
· Exited
Q3 2024 with $133 million in total cash ($121 million
unrestricted), an increase of $20 million compared to the same
period last year;
· Ended
the quarter with a net surplus of $10.1 million, compared to $50.3
million at the end of the prior quarter, and $86.5 million at the
end of Q3 2023. The decline in net surplus is mainly due to the
impact of falling oil prices on a long-term, unrealized derivative
liability, as well as to working capital adjustments associated
with the Company's ongoing capital program;
· Successfully drilled two new wells in the quarter, including
one water disposal well and one production well. The 20H well has
produced an average of 4,209 bopd over the last 14 days, as Bretaña
field production and exports have returned to capacity;
· For
the first time at Bretaña, PetroTal drilled and tested a lateral
into the Upper Vivian sandstone (VS1). The brief production test of
this zone in the 20H well flowed 320 bopd, potentially setting the
stage for incremental reserve additions at year-end
2024;
· Q3
2024 net income totaled $7.2 million ($0.01/share), representing
the 19th straight quarter in which PetroTal has returned net income
profits; and,
· Paid
total dividends of $0.015/share and repurchased 1.0 million common
shares in Q3 2024, representing approximately $14.3 million of
total capital returned to shareholders (approximately 3.5% of
September 30, 2024 market capitalization).
(1)
Non-GAAP (defined below) measure that does not have any
standardized meaning prescribed by GAAP and therefore may not be
comparable with the calculation of similar measures presented by
other entities. See "Selected Financial Measures"
section.
Manuel Pablo Zuniga-Pflucker,
President and Chief Executive Officer, commented:
"The third quarter is typically the most challenging period of
the year for PetroTal, due to seasonal declines in river levels
which impact our ability to export crude oil from the Bretaña
field. With that in mind, I am proud of the results our team has
delivered this quarter. Although production declined relative to
the prior quarter, we increased output by 39% compared to the same
period last year and our YTD production is now tracking 23% higher
than the first nine months of 2023, all while the Company is
building cash and returning more than $51 million to shareholders
through dividends and buybacks.
"Looking ahead to 2025, PetroTal is well prepared to handle a
period of lower oil prices. We have no debt and a stable,
high-margin production base. As planned, our drilling program at
Bretaña is pausing in Q1 2025, while we import a new, modern
drilling rig to Peru. The new drilling rig is expected to drive
material cost savings, while allowing us to control the pace of
development, giving us a higher degree of flexibility to respond to
changes in oil pricing as necessary. We look forward to providing
detailed guidance on our 2025 budget and operational program in
January."
Selected Financial Highlights
|
|
Three Months Ended
|
Nine
Months Ended
|
|
|
Q3-2024
|
|
Q2-2024
|
|
Q3-2024
|
|
Q3-2023
|
|
|
|
$/bbl
|
$
000
|
$/bbl
|
$
000
|
$/bbl
|
$
000
|
$/bbl
|
$
000
|
|
Average Production (bopd)
|
|
15,203
|
|
18,290
|
|
17,329
|
|
14,040
|
|
Average sales (bopd)
|
|
14,760
|
|
18,050
|
|
17,044
|
|
14,214
|
|
Total sales (bbls)(1)
|
|
1,357,961
|
|
1,642,578
|
|
4,670,076
|
|
3,880,424
|
|
Average Brent price
|
$77.74
|
|
$83.87
|
|
$80.85
|
|
$81.88
|
|
|
Contracted sales price, gross
|
$78.58
|
|
$83.92
|
|
$81.37
|
|
$80.35
|
|
|
Tariffs, fees and differentials
|
($20.52)
|
|
($21.15)
|
|
($20.87)
|
|
($20.34)
|
|
|
Realized sales price, net
|
$58.06
|
|
$62.76
|
|
$60.50
|
|
$60.01
|
|
|
Oil
revenue(1)
|
$58.06
|
$78,850
|
$62.76
|
$103,086
|
$60.50
|
$282,519
|
$60.01
|
$232,865
|
|
Royalties(2)
|
$5.47
|
$7,433
|
$6.08
|
$9,991
|
$5.77
|
$26,924
|
$5.40
|
$20,972
|
|
Opex
(excl. Erosion Control)
|
$8.23
|
$11,176
|
$6.10
|
$10,023
|
$6.53
|
$30,477
|
$5.78
|
$22,436
|
|
Opex
(Erosion Control)
|
$0.40
|
$548
|
|
|
$0.12
|
$548
|
|
|
|
Direct Transportation:
|
|
|
|
|
|
|
|
|
|
Diluent
|
$0.90
|
$1,218
|
$1.16
|
$1,898
|
$1.00
|
$4,684
|
$1.25
|
$4,838
|
|
Barging
|
$0.68
|
$927
|
$0.58
|
$951
|
$0.62
|
$2,883
|
$0.68
|
$2,647
|
|
Diesel
|
$0.13
|
$173
|
$0.11
|
$186
|
$0.09
|
$439
|
$0.10
|
$374
|
|
Storage
|
$0.51
|
$690
|
$0.01
|
$12
|
$0.05
|
$245
|
$0.54
|
$2,114
|
|
Total Transportation
|
$2.22
|
$3,008
|
$1.86
|
$3,047
|
$1.76
|
$8,251
|
$2.57
|
$9,973
|
|
Net
Operating Income(3,4)
|
$41.74
|
$56,685
|
$48.72
|
$80,025
|
$46.32
|
$216,319
|
$46.26
|
$179,484
|
|
G&A
|
$6.75
|
$9,160
|
$6.41
|
$10,528
|
$5.94
|
$27,757
|
$5.02
|
$19,462
|
|
EBITDA(3)
|
$35.00
|
$47,526
|
$42.31
|
$69,499
|
$40.38
|
$188,562
|
$41.24
|
$160,021
|
|
Adjusted EBITDA(3,5)
|
$36.49
|
$49,556
|
$45.78
|
$75,201
|
$42.14
|
$196,805
|
$42.19
|
$163,721
|
|
Net
Income
|
$5.29
|
$7,179
|
$21.56
|
$35,406
|
$19.32
|
$90,208
|
$22.93
|
$88,975
|
|
Basic Shares Outstanding (000)
|
|
913,259
|
|
914,196
|
|
913,259
|
|
917,454
|
|
Market Capitalization(6)
|
|
$429,231
|
|
$504,152
|
|
$429,231
|
|
$522,519
|
|
Net
Income/Share ($/share)
|
|
$0.01
|
|
$0.04
|
|
$0.10
|
|
$0.10
|
|
Capex
|
|
$43,019
|
|
$38,867
|
|
$112,238
|
|
$76,296
|
|
Free
Funds Flow(3) (7)
|
$4.81
|
$6,537
|
$22.12
|
$36,334
|
$18.11
|
$84,567
|
$22.53
|
$87,424
|
|
% of
Market Capitalization(6)
|
|
1.5%
|
|
7.2%
|
|
19.7%
|
|
15.8%
|
|
Total Cash(8)
|
|
$133,072
|
|
$95,859
|
|
$133,072
|
|
$112,827
|
|
Net
Surplus (Debt) (3) (9)
|
|
$10,124
|
|
$50,324
|
|
$10,124
|
|
$86,545
|
1. Approximately 89%
of Q3 2024 sales were through the Brazilian route vs 87% in Q2
2024.
2. Royalties include
the impact of the 2.5% community social trust.
3. Non-GAAP (defined
below) measure that does not have any standardized meaning
prescribed by GAAP and therefore may not be comparable with the
calculation of similar measures presented by other entities. See
"Selected Financial Measures" section.
4. Net operating
income represents revenues less royalties, operating expenses, and
direct transportation.
5. Adjusted EBITDA
is net operating income less general and administrative ("G&A")
and plus/minus realized derivative impacts.
6. Market
capitalization for Q3 2024, Q2 2024 and Q3 2023 assume share prices
of $0.53, $0.56, and $0.45 respectively on the last trading day of
the quarter.
7. Free funds flow
is defined as adjusted EBITDA less capital expenditures. See
"Selected Financial Measures" section.
8. Includes
restricted cash balances.
9. Net Surplus
(Debt) = Total cash + all trade and net VAT receivables + short and
long term net derivative balances - total current liabilities -
long term debt - non current lease liabilities - net deferred tax -
other long term obligations.
Q3
2024 Financial Variance Summary
|
|
Three months
ended
|
Nine months
ended
|
|
US$/bbl Variance Summary
|
Q3 2024
|
Q2 2024
|
Variance
|
Q3 2024
|
Q3 2023
|
Variance
|
|
Oil
Sales (bopd)
|
14,760
|
18,050
|
(3,290)
|
17,044
|
14,214
|
2,830
|
|
Average Brent Price
|
$77.74
|
$83.87
|
($6.13)
|
$80.85
|
$81.88
|
($1.03)
|
|
Realized Sales Price
|
$58.06
|
$62.76
|
($4.70)
|
$60.50
|
$60.01
|
$0.49
|
|
Royalties
|
$5.47
|
$6.08
|
($0.61)
|
$5.77
|
$5.40
|
$0.37
|
|
Total OPEX and
Transportation
|
$10.85
|
$7.96
|
$2.89
|
$8.41
|
$8.35
|
$0.06
|
|
Net
Operating Income(1,2)
|
$41.74
|
$48.72
|
($6.98)
|
$46.32
|
$46.26
|
$0.06
|
|
G&A
|
$6.75
|
$6.41
|
$0.34
|
$5.94
|
$5.02
|
$0.92
|
|
EBITDA
|
$35.00
|
$42.31
|
($7.31)
|
$40.38
|
$41.24
|
($0.86)
|
|
Net Income
|
$5.29
|
$21.56
|
($16.27)
|
$19.32
|
$22.93
|
($3.61)
|
|
Free
Funds Flow(1,3)
|
$4.81
|
$22.12
|
($17.31)
|
$18.11
|
$22.53
|
($4.42)
|
· Sales
volumes declined by 18% QoQ, due to seasonal patterns in river
levels which constrain PetroTal's ability to export crude oil from
the Bretaña field. However, on a YTD basis, sales volumes are
tracking 20% above prior year levels;
· Brent
oil prices declined by $6.13/bbl in Q3, compared to Q2 2024.
However, PetroTal's realized sale price only declined by $4.70/bbl.
Relative to 2023, Brent oil and PetroTal's realized sale price are
essentially unchanged on a YTD basis;
· Operating and transportation expenses increased by $2.89/bbl
in Q3 2024, mainly due to barging and logistics costs associated
with the pilot shipment of Bretaña crude to the OCP in Ecuador.
However, on a YTD basis, operating and transportation costs are
essentially unchanged relative to last year;
· Net
operating income and EBITDA both fell by approximately $7.00/bbl
relative to the prior quarter, due in approximately equal parts to
a decline in realized pricing and higher operating
costs.
· Net
income fell by $16.27/bbl in Q3 2024, mainly due to a large
unrealized derivative loss ($21.5 million, or $15.82/bbl) related
to the Company's historical crude oil sales with
PetroPeru.
1. See "Selected
Financial Measures".
2. Net operating
income represents revenues less royalties, operating expenses, and
direct transportation.
3. Free funds flow
is defined as adjusted EBITDA less capital expenditures.
4. Net Surplus
(Debt) = Total cash + all trade and net VAT receivables + short and
long term net derivative balances - total current liabilities -
long term debt - non current lease liabilities - net deferred tax -
other long term obligations.
Additional Financial and Operating Updates during, and
subsequent to September 30, 2024
Current Production
Bretaña field production has
averaged 21,136 bopd in the first ten days of November, and 16,400
bopd on a Q4 2024 to-date basis. Supported by the results of its
ongoing drilling program, PetroTal was able to respond quickly to
rising river levels in mid-October and returned field production to
capacity within a matter of days. The Company continues to observe
strong production response from recently-drilled wells; the 20H
well averaged 4,086 bopd over the last week of October, while wells
18H and 19H averaged 2,589 bopd and 2,774 bopd, respectively.
PetroTal is reiterating previous guidance for Q4 2024 production to
average approximately 18,500 bopd, on capital spending of $41-$53
million.
2024 Guidance
PetroTal reaffirms guidance for
corporate production to average 16,500 to 17,500 bopd in 2024, on
total capital spending of $150-175 million. With Brent oil prices
averaging approximately $78.00/bbl YTD through October, in-line
with the Company's original budget assumption of $77.00/bbl, 2024
annual EBITDA is still expected to fall within a range of $200-$240
million.
Drilling Update
As disclosed previously, PetroTal
commenced drilling well 21H at Bretaña on September 25, 2024. The
well reached Total Depth in early November, and was brought
onstream on November 9. The Company will provide an update on
initial flow rates once the well has been onstream for at least 30
days. PetroTal will now drill the 22H and 23H locations, before
pausing the Bretaña drilling program in Q1/25. Well 21H was drilled
on-time and on-budget, at a cost of approximately $14.4
million.
Drilling Rig Acquisition
On October 11, 2024, PetroTal
executed an agreement to acquire a drilling rig from a
Houston-based equipment company. The purchase of the rig was
financed through a lease agreement with a Peruvian bank, for a term
of 36 months at a payment of approximately $0.5 million per month.
PetroTal intends to import the rig to Peru in Q1 2025, and expects
to bear approximately $3.0 million in one-time costs associated
with the transportation and commissioning of the rig. The new
drilling rig is expected to drive several key benefits for
PetroTal, including immediate savings on day rates and improved
uptime, while retaining more flexibility over its drilling
program.
Erosion Control Project
Preparation for the erosion control
project is ongoing. On October 10, 2024, PetroTal agreed to
contract terms with its construction consortium, which were
subsequently approved by the Company's Board of Directors on
October 25. The key details of the project are consistent with
PetroTal's existing public disclosure; the Company intends to
invest $65-$75 million in erosion control over the next 18 months,
with most of the cash impact to be felt in 2025. In total, it is
expected that approximately 60-65% of the project costs will be
allocated to opex, while 35-40% will be allocated to capex.
PetroTal completed the advance purchase of steel components for the
erosion control project in Q3 2024, at a cost of $7.3 million;
these components have been included in inventory as of September
30, 2024.
Cash and Liquidity Update
PetroTal ended Q3 2024 with a total
cash position of approximately $133 million, of which $121 million
was unrestricted. This compares to total cash of $96 million at the
end of Q2 2024, and $113 million at the same time last year. Net
Surplus, a non-IFRS measure which PetroTal uses to describe its
liquidity position net of working capital and various non-current
liabilities, declined to $10.1 million at the end of Q3 2024 (from
$50.3 million at the end of Q2 2024). The quarter-over-quarter
decline was due to an unrealized change in the value of PetroTal's
embedded derivative liability, associated with the Company's
historical sales agreement with PetroPeru, and to other working
capital adjustments. The change in value of the derivative
liability was mainly due to a decline in forward oil prices.
PetroTal still has 1.9 million barrels of pending crude sales with
PetroPeru, of which 0.4 million barrels are expected to occur in
2025, and the Company will continue to adjust the value of this
derivative liability at the end of each fiscal quarter.
During the quarter, PetroTal
obtained two lines of credit with Peruvian banks, totaling $30
million. The interest rates are determined by the prevailing market
rate at the time of borrowing, and the lines of credit have payment
terms of 120-180 days. PetroTal now has total credit capacity of
$77 million, which is completely undrawn at the time of this
report.
As disclosed previously, PetroTal
entered into a hedge agreement during Q3 2024, for an average of
172,000 barrels per month through August 2025. The costless collars
have a Brent floor price of $65.00/bbl and a ceiling of $84.25/bbl,
with a cap of $104.25/bbl. Subsequent to the end of the quarter,
the Company executed hedges on an additional 570,000 barrels, at
the same terms as the initial agreement. PetroTal is now hedged on
approximately 50% of its forecast crude oil sales through January
2025, and approximately 25% of its oil sales through August
2025.
Share Buyback Plan Update
PetroTal's updated liquidity
strategy prioritizes dividend sustainability, the company's ongoing
development program, and erosion control working capital
requirements. In Q3 2024, the Company set additional constraints on
the share buyback program that better align daily buyback execution
with lower share prices. As a result, the volume of buybacks
decreased compared to previous quarters. The Company will continue
to monitor buyback levels and will operate in the quarterly
approved bandwidths announced in May 2024.
Q3
2024 dividend declaration
A cash dividend of USD$0.015 per
common share has been declared to be paid in Q4 2024. This
represents a 13% annualized yield based on the current share price.
The dividend will be paid according to the following
timetable:
· Ex
dividend date: November 28, 2024
· Record
date: November 29, 2024
· Payment date: December 13, 2024
The dividend is an eligible dividend
for the purposes of the Income Tax Act (Canada) and investors
should note that the excess liquidity sweep portion of all future
dividends may be subject to fluctuations up or down in accordance
with the Company's return of capital policy. Shareholders outside
of Canada should contact their respective brokers or registrar
agents for the appropriate tax election forms regarding this
dividend.
Corporate Presentation Update
The Company has updated its
Corporate Presentation, which is available for download or viewing
at www.petrotalcorp.com.
Q3
2024 Webcast Link for November 14, 2024
PetroTal will host a webcast for its
Q3 2024 results on November 14, 2024 at 9am CT (Houston) and 3pm
BST (London). Please see the link below to register.
https://brrmedia.news/PTAL_Q3_24
ABOUT PETROTAL
PetroTal is a publicly traded,
tri‐quoted (TSX: TAL) (AIM: PTAL) (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 Bretaña Norte
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 Bretaña 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.sedarplus.ca,
or below:
Camilo McAllister
Executive Vice President and Chief
Financial Officer
Cmcallister@PetroTal-Corp.com
T: (713) 253-4997
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 production
capacity; PetroTal's 2024 program for drilling, completions and
other activities; plans and expectations with respect to the OCP
and Ecuador export pilot (including the expectation that pilot oil
will travel approximately 1,000 km by barge to Block 19); and
PetroTal's expectations with respect to projects and key
initiatives to be financed with contributions from the Social Trust
Fund. 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", "intend" and
similar expressions. The forward-looking statements provided in
this press release are based on management's current belief, based
on currently available information, as to the outcome and timing of
future events. 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 to obtain and maintain necessary
permits and licenses, the ability of government groups to
effectively achieve objectives in respect of reducing social
conflict and collaborating towards continued investment in the
energy sector, 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.
PetroTal cautions that forward-looking statements relating to
PetroTal are subject to all of the risks, uncertainties and other
factors, which may cause the actual results, performance, capital
expenditures or achievements of the Company to differ materially
from anticipated future results, performance, capital expenditures
or achievement expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially from those set forth in the forward-looking statements
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), business performance, legal and legislative
developments including changes in tax laws and 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, credit ratings and
risks, fluctuations in interest rates and currency values, changes
in the financial landscape both domestically and abroad, including
volatility in the stock market and financial system, wars
(including Russia's war in Ukraine and the Israeli-Hamas conflict), regulatory
developments, 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, changes in the
financial landscape both domestically and abroad (including
volatility in the stock market and financial system) and the
occurrence of weather-related and other natural catastrophes.
Readers are cautioned that the foregoing list of factors is not
exhaustive. Please refer to the annual information form for the
year ended December 31, 2023 and the management's discussion and
analysis for the three months ended March 31, 2024 for additional
risk factors relating to PetroTal, which can be accessed either on
PetroTal's website at www.petrotal-corp.com or
under the Company's profile
on www.sedarplus.ca.
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 National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities ("NI
51-101").
SHORT TERM RESULTS: References in this press release to peak
rates, initial production rates, current production
rates, 30-day production rates 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 of
PetroTal. The Company cautions that such results should be
considered to be preliminary.
FOFI DISCLOSURE: This press release contains future-oriented
financial information and financial outlook information
(collectively, "FOFI") about PetroTal's prospective results of
operations and production results, 2024 drilling program and
budget, well investment payback, cash position, liquidity 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 and its
management believe that FOFI has been prepared on a reasonable
basis, reflecting management's best estimates and judgments, and
represent, to the best of management's knowledge and opinion, the
Company's expected course of action. However, because this
information is highly subjective, it should not be relied on as
necessarily indicative of future results. 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. Changes in forecast commodity prices, differences in the
timing of capital expenditures, and variances in average production
estimates can have a significant impact on the key performance
measures included in PetroTal's guidance. The Company's actual
results may differ materially from these
estimates.
