(PetroTal Corp., 25.Aug.2018) — The company placed the Bretaña oil field online at approximately 1,000 b/d during the initial testing and commissioning phase. To date, the well has accumulated approximately 40,000 barrels with no sign of water produced from the aquifer. The oil is being sold at the local Iquitos refinery owned by PetroPeru.
As part of the testing phase, the well is currently undergoing a pressure build up test to gather reservoir data. During this initial phase, the company continues to produce the well under a choke that will reduce the risk of aquifer water production until water handling facilities are installed in the field.
During the testing phase, prior to Declaration of Commerciality, the company will record all production costs, royalties, and sales as part of capital expenditures. For this reason, any oil in the storage tanks will not be considered “revenues” until after the declaration of commerciality.
Since testing started, PetroTal has realized an average oil price of $58.16, net of transportation.
“Our team continues to deliver ahead of schedule and we are pleased with the initial well test and early production thus far. Strong realized oil prices of over $58.00 plus our ability to barge directly to the refinery, which saves on pipeline tariffs, provides key cash to the company at this stage,” said PetroTal President and Chief Executive Officer Manolo Zuniga. “With Perupetro providing the certificates of qualification, this sets the stage for PetroTal to grow for the foreseeable future.”
Water injection pumps have arrived at the field and are being installed. Remaining water-handling facilities, such as the desalter, originally scheduled to be ready by November, are now scheduled to arrive in September and be ready for operation in late October. Once the facilities are installed and commissioned, the well will be opened to produce at an expected rate of 2,000 and 2,500 b/d.
PetroTal plans to spud the first development well in the first quarter of 2019. As previously reported, this well will be drilled down to the Chonta formation to evaluate its oil potential, and then horizontally sidetracked into the main Vivian formation as an oil producer. The rig used to begin drilling in Bretaña is currently drilling for another operator and will be mobilized to the Bretaña field in December to begin the drilling campaign.
Earlier this month, Perupetro presented to the company the certificates of qualification as the 100 percent working interest operator of Blocks 95, 107 and 133. The Supreme Decree authorizing Perupetro to execute the amended license contracts in respect of these blocks is expected by year-end 2018.
About Bretaña Field
Oil in the Bretaña field was first discovered in the 1970’s and was subsequently re-discovered. Several wells have been drilled to delineate the field and recent seismic has de-risked the structure. The rediscovery well drilled in 2014 tested 18.5 degrees API oil from the Vivian formation. The Northern oil fields in Peru have produced over one billion barrels of oil, mostly from the Vivian formation. The company acquired the assets in Peru on December 18, 2017. The company is working to put the field on long-term test and begin production as early as Q4 2018.
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