CALGARY and HOUSTON, April 9, 2019 /CNW/ - PetroTal Corp. ("PetroTal" or the "Company") (TSX-V: TAL and AIM: PTAL) is pleased to announce that the BN 95-2-2-2XD oil development well (the "well") which commenced drilling operations on February 26, 2019, has reach total depth.
The well is being completed as a producer in the Vivian formation in the northern portion of the Bretaña structure. This is the second oil well in the first phase of development of the Bretaña oilfield. The well was directionally drilled to approximately 3,040 meters total depth. Initial logs indicate a total gross oil column of 24 meters with estimated net oil pay of 18.7 meters, in line with the Company's expectations. The indicated oil water contact in the well was in direct correlation to the other four wells previously drilled in the field.
Once completed the well will be placed online, expected in approximately one week. The Company will provide details on flow rates with the fourth quarter and year-end earnings release scheduled for the week of April 22, 2019.
The discovery well, which came online in mid-2018, is producing in line with management's expectations at an average of 950 - 1,000 barrels per day and has accumulated over 260,000 barrels of oil produced to date.
Manolo Zuniga, President and Chief Executive Officer, commented:
"We are pleased that the operations team was able to drill this well on time and on budget. This is a testament to the entire team from drillers, to contractors, to our corporate social responsibility team who worked tirelessly to ensure safe and efficient operations. The well logs provide an early indication that the reservoir is as we expected, with good oil shows in the mud logs and good indications from the full suite of logs obtained. We expect this well to be online within the week and then we will proceed with drilling the BN-95-3H development oil well."
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: PetroTal's business strategy, objectives, strength and focus; drilling and completion activities and the results and timing of such activities; the ability of the Company to achieve drilling success consistent with management's expectations; anticipated future production and revenue; future development and growth prospects; and the timing of the Company's year-end earnings press release. 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 and availability of required equipment and services. 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 nine months ended September 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.
FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production, 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 Canadian Securities Administrators' National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities..
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 (Financial PR), [email protected], T: 44 (0) 207 520 9261; James Spinney / Ritchie Balmer / Eric Allan, Strand Hanson Limited (Nominated & Financial Adviser), T: 44 (0) 207 409 3494; John Prior / Emily Morris / George Price, Numis Securities Limited (Joint Broker), T: +44 (0) 207 260 1000; Jonathan Wright / Hugh R. Sanderson, GMP FirstEnergy (Joint Broker), T: +44 (0) 20 7448 0200