(PetroTal, 6.Jul.2023) — PetroTal Corp. (TSX: TAL, AIM: PTAL and OTCQX: PTALF) announce the following operational and corporate update.
Record Q2 2023 Production
PetroTal achieved a record production of 19,031 barrels of oil per day (bopd) in Q2 2023. This was underpinned by robust production from the company’s newly drilled 15H well and by delivering maximum sales volume through the Brazilian route for most of the quarter. During its first 25 days of production, the 15H well has averaged approximately 7,300 bopd, with its most recent rate reported at 6,040 bopd after accumulating 182,500 barrels of crude oil. Early in Q2 2023, the company also brought online well 14H with its most recent rate reported at approximately 2,300 bopd.
During the second quarter, PetroTal constrained approximately 25% of its production capacity due to the ongoing Northern Peruvian Pipeline (“ONP”) closure and six days of planned maintenance, which coincided with a brief period of social disruption.
2023 Production Guidance
The company is now moving its contracted drilling rig to service two of the initial Bretana oil wells. As initially forecast, the next location (well 16H) will commence drilling in late Q3 2023, once the new L2 West drilling platform has been fully tied in. PetroTal continues to monitor the Amazon River levels on the Brazilian side as the peak dry season settles in, and by next month the company should be able to either reaffirm or upgrade its current 2023 guidance.
PetroTal will continue to drill new wells while oil prices allow for quick capital recovery, ensuring the company builds a steady base of oil producing wells that will extend Bretana’s free cash flow proposition for the long term.
Cash and Liquidity Update
PetroTal exited Q2 2023 with approximately $75mn of unrestricted cash and $17mn of restricted cash for a total of $92mn. Restricted cash includes amounts reserved for the social trust funds to be deposited at a later date. The robust cash position supports future return of capital efforts to shareholders in the form of regular dividends, special dividends and share buybacks. During Q2 2023, the company purchased 582,708 shares at an average price of US$0.56/share pursuant to the share buyback program. Accounts receivable of approximately $100mn are contractually current, with accounts payable of approximately $59mn, primarily due within the next 50 days.