(PetroTal, 11.Apr.2024) — PetroTal Corp. (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 4Q:23 and 1Q:23, respectively. Production during the past 30 days has averaged approximately 20,500 bopd.
Operations
During 1Q:24, 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 1 Mar. 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 3Q:24; while permitting is ongoing, detailed engineering is being finalized, and long lead items are being procured.
Cash and Liquidity Update
PetroTal exited 1Q:24 in a strong position with approximately $63mn of unrestricted cash and $22mn of restricted cash for a total of $85mn at 31 Mar. 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 1Q:24, 15 Mar. dividend distribution and revenue payments received in early Apr. During 1Q:24, the company purchased 4.7mn shares at an average price of US$0.58/share pursuant to the share buyback program, and paid dividends of $18.4mn (US$0.02/share) on 15 Mar., related to 4Q:23 operations. At the end of 1Q:24, accounts receivable and accounts payable of approximately $111.7mn and $73.6mn (due within 50 days) respectively, were outstanding.
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. 1Q:24 liquidity was as expected with the company receiving an average oil price above its 2024 guidance of $77/bbl Brent, bolstering 1Q:24 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.”
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