CALGARY and HOUSTON, Nov. 15, 2018 /CNW/ - PetroTal Corp. ("PetroTal" or the "Company") (TSX-V: TAL) is pleased to announce that it has successfully increased oil production from the Bretaña Norte discovery well (the "Discovery Well" or the "Well") at the Bretaña field in Block 95, Peru. The Company is also pleased to provide a further update on operations at Bretaña as well as selected financial information as of September 30, 2018. All figures referred to in this press release are denominated in U.S. dollars.
- Successful installation and commissioning of oil production and water handling facilities, completed on schedule and under budget
- Production from the Discovery Well increased to over 2,000 barrels of oil per day ("BOPD"), with over 100,000 barrels of crude oil produced to date
- Bureau Veritas' evaluation of oil sample demonstrates lighter 19.2 degree API oil and lower viscosity
- Mobilizing drilling rig to Bretaña with the expectation of spudding the first of a three well program in February 2019
- Approximately $27 million in liquidity as of September 30, 2018, with no debt
The Company initially provided guidance that the Discovery Well, which had been tested but not put on production, could commence production in 10 to 12 months from PetroTal taking over operational control of the field in late December 2017. The Company subsequently announced that, on June 1, 2018, the well was placed on production through long-term testing, allowing for the start of the well test under natural flow and the commissioning of the newly installed oil production facilities, five months earlier than anticipated. As previously announced, the Company restricted the well flow rates to avoid water production until the required water injection facilities were installed and commissioned. The first phase of water handling equipment and reinjection pumps were installed on schedule, commissioned and currently functioning to allow the well to produce 2,000 BOPD.
Manolo Zuniga, President and Chief Executive Officer of PetroTal, stated:
"The Discovery Well is producing over 2,000 barrels of oil per day. Commissioning of the water re-injection facilities was seamless and now we are engineering the next phase that will be installed in the fourth quarter of 2019, allowing us to accelerate the production ramp up."
"Last week the team celebrated a significant milestone as the Discovery Well surpassed 100,000 barrels of crude oil production, much sooner than expected. Additionally, we sent a crude oil sample to Bureau Veritas for evaluation and we are pleased with the resulting lighter crude quality and lower viscosity. This is important for two reasons: first it should allow PetroTal to improve netbacks per barrel by using less diluent than budgeted; and secondly we will now have more reliable data when updating our reserves with our third party reserve engineers. We are currently mobilizing a rig to drill Bretaña's second oil well, expected to spud in February and be placed on production in late March 2019."
PetroTal is a publicly-traded oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's development asset is the Bretaña field in Peru's Block 95 where oil production was initiated in June 2018. The Company's management team has significant experience in developing oil fields in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing and exploiting the Bretaña oil field.
FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: the Company's objectives; drilling, reactivation, water and other activities and the anticipated costs and results of such activities, including with respect to the Discovery Well; cost controls and savings; anticipated future production and revenue; and future development and growth prospects. 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" and similar expressions. 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, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, 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, the Company's growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These 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), commodity price and 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 and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2017 and management's discussion and analysis for the three and six months ended June 30, 2018 which are available on SEDAR at www.sedar.com. 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 AND GAS INFORMATION: This press release contains metrics commonly used in the oil and natural gas industry, such as netbacks. These terms have been calculated by management and do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare PetroTal's operations over time. All oil and gas disclosure contained in this press release complies with the requirements of NI 51-101.
References in this press release to production test rates, initial test 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 for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test 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, production, netbacks, operating costs 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 made as of the date of this press release and was provided for the purpose of providing further information about PetroTal's anticipated future business operations. 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE PetroTal Corporation
For further information: Greg Smith, Executive Vice President and Chief Financial Officer, [email protected], T: (713) 609-9101; Manolo Zuniga, President and Chief Executive Officer, [email protected], T : (713) 609-9101; Mark Antelme / Henry Lerwill, Celicourt Communications, [email protected], T : 44 207 520 9261