(PetroTal Corp., 26.Sep.2018) — PetroTal Corp. is increasing production from the Bretaña oil field on Block 95, as well as evaluating the Osheki prospect in Block 107.
Key highlights from the fields follows:
— Bretaña oil field (Block 95):
– One of the largest undeveloped discoveries in Peru
– First oil achieved in June 2018, ahead of schedule
– Installation of initial Long-Term Testing Facilities to handle production of 5,000 barrels of oil per day (b/d) and 5,000 b/d of is expected to be completed on schedule and under budget by late October, 2018
– Average September 2018 production is ~900 b/d naturally flowing, expected to increase to over 2,000 b/d by November 2018
– First development well to be spud in early 2019, allowing for production growth to 5,000 b/d by mid-2019 and to 10,000 b/d in early 2020.
– Significant proved + probable (2P) reserves of 39.8 million barrels of oil, independently verified by Netherland Sewell & Associates, Inc. (NSAI) effective as of December 31, 2017
– Attractive fiscal terms with an initial cash royalty of five percent, not surpassing eight percent at peak production
– Established routes to market with current production being sold at the Iquitos Refinery
“We have achieved operational milestones, ahead of schedule and under budget, including the commencement of production at Bretaña. PetroTal is in a strong financial position with no debt, and our investment case is further de-risked by a relatively simple geological story,” said PetroTal President and Chief Executive Officer Manolo Zuniga.
— Osheki light oil prospect (Block 107):
– Recent confirmation that Osheki prospect is estimated to hold 534 million barrels of mean prospective recoverable resources, estimated by NSAI effective as of June 30, 2018.
– Estimate is based on a recovery factor of 30 percent of the estimated 1.78 billion barrels of mean prospective original oil in place (OOIP)
– Currently in discussions with potential joint venture partners to drill Osheki
– Further potential material upside from additional leads in Block 107
“We are proud to be aligned with the Peruvian government as we play our part in helping the country increase production and reduce oil imports. I am very upbeat about the future as we continue our journey to become a Peruvian focused E&P of scale, creating value from our existing assets, and over time expanding the portfolio in Peru,” concluded Zuniga.
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