PetroTal Announces Exercise of Performance Warrants and Total Voting Rights
Calgary, AB and Houston, TX - December 31, 2021 - PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL, AIM: PTAL and OTC: PTALF) announces that it received a notice to exercise 1,000,000 Performance Warrants at a price of 0.1869 USD per Common Share. Accordingly, PetroTal received 186,900 USD for the warrants exercised.
Following this warrant exercise, the Company will have 22,546,350 Performance Warrants outstanding. Application will be made for admission of the 1,000,000 Warrant Shares, which will rank pari passu with existing Common Shares, to trading on AIM ("Admission"), which is expected to occur on or around January 10, 2022.
Following Admission, the Company will have 828,197,172 Common Shares issued and there are no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations to determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL, AIM: PTAL and OTC: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, Petrotal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains 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; and the impact of social disruption on the Company's operations, including a potential field shutdown at Bretana. 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. 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. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2020 and management's discussion and analysis for the three and nine months ended September 30, 2021 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.
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.
PetroTal Announces Exercise of Performance Warrants and Total Voting Rights
Calgary, AB and Houston, TX - December 29, 2021 - PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL, AIM: PTAL and OTC: PTALF) announces that it received a notice to exercise 535,000 Performance Warrants at a price of 0.1869 USD per Common Share. Accordingly, PetroTal received 99,992 USD for the warrants exercised.
Following this warrant exercise, the Company will have 23,546,350 Performance Warrants outstanding. Application will be made for admission of the 535,000 Warrant Shares, which will rank pari passu with existing Common Shares, to trading on AIM ("Admission"), which is expected to occur on or around January 07, 2022.
Following Admission, the Company will have 827,197,172 Common Shares issued and there are no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations to determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
ABOUT PETROTAL
PetroTal is a publicly traded, tri-quoted (TSXV: TAL, AIM: PTAL and OTC: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, Petrotal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains 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; and the impact of social disruption on the Company's operations, including a potential field shutdown at Bretana. 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. 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. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2020 and management's discussion and analysis for the three and nine months ended September 30, 2021 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.
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.
PetroTal Provides Operational Update; Oil Production Reaches 20,000 bopd
Pipeline Settlement Framework for Pump Station 5
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 16, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) ("PetroTal" or the "Company") is pleased to provide the following updates:
Achieved 20,000 bopd Production Level
PetroTal has achieved a trailing 5-day unconstrained production rate ending December 15, 2021, of approximately 20,200 barrels of oil per day ("bopd"). With wells 8H and 9H producing over 6,300 bopd and 8,200 bopd respectively, PetroTal was able to achieve its long-standing goal of exceeding 20,000 bopd much earlier than anticipated and previously guided. PetroTal has reached this milestone only four years after commencing operations at the Bretana oil field in early 2018, an indication of operational excellence, perseverance and teamwork.
Robust Production from Well 9H
Well 9H is delivering a strong initial production profile having averaged approximately 8,200 bopd over the last 10 days, and trending very close to the performance of well 8H.
Well 10H Commences Drilling
PetroTal commenced drilling well 10H on December 11, 2021. This long-reach horizontal well is similarly located to well 9H and is estimated to cost $13.9 million with a targeted completion date in early February 2022.
Settlement Framework Reached at Pump Station 5
PetroTal advises that a joint framework was reached between the communities, Ministry of Energy and Mines, and Petroperu, that demonstrates trust and a commitment to ongoing dialogue, which has resulted in the expected return of Pump Station 5 back to Petroperu on December 16, 2021, as a gesture of goodwill toward longer term solutions. Once Petroperu restarts operations at Pump Station 5, it will take approximately one week to complete the required inspections needed to fully recommence oil throughput in the Northern Peruvian Pipeline ("ONP"). Based on this forecast, it is still likely PetroTal will have to constrain production after December 16, 2021, for up to two weeks, to manage storage capacity, at which time it expects to go back to levels near 20,000 bopd.
Brazilian Export Update
In November and December, PetroTal will export nearly 320,000 barrels of oil through the Brazil sales route. Commencing in January 2022, estimated Brazilian oil exports will be approximately 240,000 barrels monthly and expected to increase further in Q2 2022.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"We are very pleased at the progress made at Pump Station 5 and the demonstration of trust and goodwill shown by the communities. This, together with the initiatives PetroTal is pursuing, is expected to lead to long term stability for the region at a critical time for the new Talara refinery that is expected to start operation in 2022, Peruvian producers, the local communities, and Petroperu. I would also like to thank our team for their dedication and perseverance over the past four years enabling PetroTal to achieve our original 20,000 bopd goal. I am humbled by the expertise and drive our team continues to demonstrate through unprecedented operating conditions. Additionally, I'd like to thank our shareholders for their ongoing support, patience and confidence as we continue development of the prolific Bretana oil field."
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains 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; and the impact of social disruption on the Company's operations, including a potential field shutdown at Bretana. 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. 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. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2020 and management's discussion and analysis for the three and nine months ended September 30, 2021 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.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/107774
PetroTal Announces Grant of Performance Share Units
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 10, 2021) - PetroTal Corp. ("PetroTal" or the "Company") announces the annual grant of performance share units ("PSUs") to officers and employees of the Company.
The Company has granted an aggregate of 10,030,262 PSUs, of which 6,467,416 are to officers of the Company ("Officers") in accordance with the provisions of the Company's PSU plan. The PSUs issued to Officers will vest three years from the date of grant and each PSU will entitle the holder to acquire, for nil cost, between zero and two common shares of the Company ("Shares"), subject to the achievement of performance conditions relating to the Company's total shareholder return, net asset value and certain production and operational milestones.
The remaining PSUs issued vest annually, on an equal basis, over the next three years.
Summary of PSU grants to Officers
| Manuel Pablo Zuniga-Pflucker, President and CEO | 4,325,813 |
| Douglas Urch, Executive Vice President and CFO | 1,199,428 |
| Dewi Jones, Vice President, Exploration and Development | 942,175 |
Further details regarding the PSU plan are set out in the management information circular of the Company dated May 13, 2021, which is available on SEDAR at www.sedar.com. The Corporate Governance and Compensation Committee of the Board is charged with overseeing the PSU plan.
Following this grant, the Company has a total of 23,583,322 PSUs outstanding.
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) AIM: PTAL) (OTC: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, Petrotal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T: 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains 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; oil production levels, well payout production and the ability of the Company to achieve near term production targets; anticipated future production and revenue; continued operation of the ONP and PetroTal's access thereto, the Company's expectations regarding netbacks and free cash flow; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. 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, the ability of the Ministry of Energy to effectively achieve its objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, including pursuant to hedging arrangements, 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 volatility, price differentials and the actual prices received for products, 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. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the most recent management's discussion and analysis and the most recent annual information form 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.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/107233
PetroTal Announces a Peaceful Resolution to the Protest Near PetroTal's Loading Dock
Well 9H Production Started
Strong Forward Liquidity Profile
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 6, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) ("PetroTal" or the "Company") is pleased to provide the following update:
End of Social Protests at PetroTal's Loading Dock
Following recent announcements, PetroTal is pleased to announce an end to the social protests near PetroTal's oil loading facility. PetroTal's recently announced social initiatives contributed to the peaceful resolution.
Barges from Brazil are on site and commenced oil loading operations on December 3, 2021. This will allow PetroTal to ramp up production during the next few days starting with the new 9H horizontal well that was put on production on December 5, 2021 and recommence sales to the Iquitos refinery and through the Brazilian export routes.
Currently, PetroTal has approximately 300,000 barrels of oil on barges, of which 135,000 barrels are near Pump Station No.1 ("PS1") at Saramuro, awaiting Petroperu's ONP pipeline operations to restart, and involves reopening PS5. The remaining barrels on barges are heading to the Iquitos refinery or to Brazil.
As of December 3, 2021, the protests at PS1 were resolved, demonstrating the positive momentum of the initiatives PetroTal is promoting. Regarding Pump Station No.5 ("PS5"), a meeting between the government and the indigenous federations has been proposed for December 10, 2021, with the intent to set a working table aimed at achieving a long-term solution to the ongoing protests due to lack of government attention. In exchange for setting up this working table, the protesters have offered a 30-day truce starting that same day.
If the 30-day truce is not achieved, the Company may need to constrain production by the third week of December 2021. PetroTal is also commissioning additional barges that would allow the Company to produce unconstrained through December 2021. Including flush production from the recently drilled and completed 9H well, the Company expects to initially produce over 18,000 bopd, although this is likely to be constrained to manage storage and offtake capacity. Beyond December 2021, PetroTal will require normal access to Petroperu's ONP pipeline route to produce unconstrained in 2022.
Well 9H Update
PetroTal is also pleased to announce well 9H was completed on December 1, 2021, to fill the wellbore with oil and inflate the packers. A recent December 6, 2021 initial flow rate achieved approximately 9,000 bopd of flush production. When available, PetroTal will provide the 10 and 30-day average production rates for the 9H well.
Liquidity Update
PetroTal is pleased to announce that its forward liquidity profile remains strong with a material cash buffer in December 2021, which is forecast to continue through Q1 2022 with a continuous capital program. This simulated forecast assumes conservative field closure conditions for the remainder of 2021, constrained oil field operations, reduced Brent prices, and moderate oil sales from currently loaded barges.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented
"We are very pleased to have reached a peaceful settlement with the protesting community near the PetroTal dock. Based on the Company's initiatives to promote change and an equalization of social profits, a sense of confidence and trust was created between our groups. We look forward to completing the legal and administrative efforts through the remainder of 2021 for the Social Fund to be live and active in early 2022. We are also seeing the government engaged in achieving a long-term resolution to the ongoing ONP protests at pump stations 1 and 5 which will hopefully lead to a full reopening of the ONP route in the near term. PetroTal is doing everything we can to support those discussions. On operations, I need to thank the entire PetroTal team for achieving another exceptional result in the 9H horizontal oil well, which was opened at more than 9,000 bopd, a new record for our Bretana oil field."
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, Petrotal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains 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; and the impact of social disruption on the Company's operations, including a potential field shutdown at Bretana. 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. 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. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2020 and management's discussion and analysis for the three and nine months ended September 30, 2021 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.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/106716
Director / PDMR Shareholding
Calgary and Houston – December 1, 2021—PetroTal Corp. (“PetroTal” or the “Company”) (TSX‐V: TAL, AIM: PTAL and OTC Pink: PTALF) announces that Eleanor Barker, Non-Executive Director, acquired 50,000 Common Shares in the Company on November 29, 2021 at CAD $0.304 per share.
As a result, Eleanor Barker’s total beneficial interest in the Company is 350,000 Common Shares, representing less than .01 percent of the Company's issued share capital.
| 1 | Details of the person discharging managerial responsibilities/person closely associated | |||||
| a) | Name | Eleanor Barker | ||||
| 2 | Reason for the notification | |||||
| a) | Position/status | Non-Executive Director | ||||
| b) | Initial notification/Amendment | Initial notification | ||||
| 3 | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||
| a) | Name | PetroTal Corp | ||||
| b) | LEI | ER 21380047ER33PRH56 | ||||
| 4 | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||
| a) | Description of the financial instrument, type of instrument
Identification code |
PetroTal Corp Common Shares
ISIN: CA71677J1012 |
||||
| b) | Nature of the transaction | The acquisition of common shares of no par value each in the Company | ||||
| c) | Price(s) and volume(s) |
|
||||
| d) | Aggregated information
|
50,000 Common Shares 0.304 Canadian dollars per share |
||||
| e) | Date of the transaction | November 29, 2021 | ||||
| f) | Place of the transaction | TSX-V Exchange | ||||
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL, AIM: PTAL and OTC: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, Petrotal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company’s website at www.petrotal-corp.com, the Company’s filed documents at www.sedar.com, or contact:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manuel Pablo Zuniga-Pflucker
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains 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; and the impact of social disruption on the Company's operations, including a potential field shutdown at Bretana. 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. 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. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2020 and management's discussion and analysis for the three and nine months ended September 30, 2021 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.
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.
PetroTal Advises of Strong Earthquake in Northern Peru
PetroTal reports no damage or injuries
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - November 29, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) ("PetroTal" or the "Company") advises that a 7.5 magnitude earthquake hit northern Peru early Sunday November 28, 2021, with the epicenter approximately 98km from the town of Santa Maria de Nieva and 400km from Bretana.
PetroTal's production facilities were not damaged, and the Company reported no injuries related to the earthquake. Earthquakes are relatively common in Peru and PetroTal's development platform and related facilities are designed to withstand earthquakes of equal or greater scale.
The social unrest disruption, as reported by the Company on November 24, 2021 remains ongoing, with production rates being managed to align with remaining storage capacity. Further updates will be provided as and when known.
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) (AIM: PTAL) and (OTC Pink: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105510
PetroTal Advises of Gran Tierra Share Ownership Reduction
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - November 26, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) ("PetroTal" or the "Company") advises that, as announced by Gran Tierra Energy Inc. ("GTEI") on November 26, 2021, Gran Tierra Resources Limited ("GTRL") has sold an aggregate of 137,093,750 common shares in the Company, ("Common Shares") representing all shares owned by GTEI. The Company understands that multiple entities purchased the Common Shares sold by GTRL. PetroTal was not a party to the agreements and did not receive any proceeds from the sale transactions.
The Company has 826,662,172 Common Shares in issue and there are no shares held in treasury. For purposes of the Disclosure Guidance and Transparency Rules, the total number of voting rights (TVR) in the Company is 826,662,172. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, Petrotal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105208
PetroTal Advises of Social Disruption Impacting Bretana Operations
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - November 24, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) ("PetroTal" or the "Company") advises of community social disruption that is impacting the Company's operations in the Bretana oil field. The social unrest situation evolved quickly near the barge loading area of the field. The oil field remains safe and producing; however, protestors are currently blocking access to the dock, preventing the Company from loading oil barges. The civil unrest is being conducted by a group seeking assistance from the Government of Peru.
PetroTal will curtail production to manage its oil tank storage capacity, however, if this situation persists, a full field shut down may be required within a few days due to the lack of excess storage capacity and route to market. PetroTal is in direct communication with the local communities and the government to enact a quick resolution to this situation. As previously announced by PetroTal, implementation of a community social development fund that should be acknowledged and supported by the Peruvian government, will go a long way to providing harmony and equitable social development.
Further updates on developments will be provided as and when they occur.
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) (AIM: PTAL) and (OTC Pink: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, Petrotal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains 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; and the impact of social disruption on the Company's operations, including a potential field shutdown at Bretana. 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. 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. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2020 and management's discussion and analysis for the three and nine months ended September 30, 2021, 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.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/104933
PetroTal Announces Q3 2021 Financial and Operating Results
PetroTal delivers 8% production growth, robust net operating income, continued balance sheet strength, and operational excellence from well 8H performance
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - November 18, 2021) - PetroTal Corp. ("PetroTal" or the "Company") (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) is pleased to announce its financial and operating results for the nine and three months ("Q3") ended September 30, 2021.
Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements ("Financial Statements"), and management's discussion and analysis ("MD&A") for Q3 2021, which are available on SEDAR at www.sedar.com and on the Company's website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars ("USD") unless otherwise stated.
Key Highlights:
- Achieved Q3 2021 production of 9,508 barrels of oil per day ("bopd"), within 2% of Q3 2021 guidance and 8% above Q2 2021 production of 8,839 bopd, under constrained production levels;
- Generated record daily oil production of 16,140 barrels on September 24, 2021, demonstrating PetroTal's ability to handle increased fluid levels, in advance of CPF-2 final commissioning;
- Attained payback on the recently drilled well ("8H") in approximately 40 days from completion;
- Commenced drilling well 9H on September 23, 2021, PetroTal's longest reach horizontal well to date. The well is estimated to cost approximately $15.5 million with first production estimated in early December 2021;
- Q4 2021 production guidance is now revised to approximately 12,500 bopd due to a drilling delay for 9H that required a sidetrack resulting from recalibration and optimization of the new synthetic mud system;
- Current average production is approximately 11,775 bopd, over the five days ending November 16, 2021;
- Updated 2021 EBITDA(1) guidance is between $105 - $110 million for 2021, up materially from the original 2021 $90 million budget and includes deferred 9H production into 2022, along with timing delays in the realization of the positive true-up revenue from the Petroperu operated North Peruvian Pipeline ("ONP") sales at the Bayovar Port;
- Achieved continued net income for the sixth consecutive quarter, $15.0 million in Q3 2021, approximately 32% above Q2 2021 net income of $11.4 million, as a result of higher oil production, higher oil prices and derivative gains;
- The Company has outlined its intended capital allocation strategy for the next five years and is prioritizing continued field development and debt repayment followed by dividends and or share buybacks thereafter; and,
- PetroTal continues to play a key role as liaison between the communities and the Peruvian government towards a revised social profit contract that, upon ratification, is expected to lead to overall community support.
(1) For a description of EBITDA, see Reader Advisories - Non-GAAP Measures below.
Q3 2021 Webcast conference call
The Company will be hosting a conference call on November 18, 2021 at 9:00am Houston time. The link for the live webcast is below:
https://webcasting.brrmedia.co.uk/broadcast/6182aaa429c8b82a5a020583
Selected Financial Highlights
| Three Months Ended | Nine Months Ended | |||||||||||
| (in thousands USD) | Sept 30, 2021 | Sept 30, 2020 | Sept 30, 2021 | Sept 30, 2020 | ||||||||
| Financial | ||||||||||||
| Crude oil revenues | $ | 44,781 | $ | 6,933 | $ | 119,946 | $ | 46,591 | ||||
| Royalties | (2,604 | ) | (248 | ) | (6,658 | ) | (2,177 | ) | ||||
| Net operating income | 29,587 | 2,324 | 79,234 | 22,889 | ||||||||
| Commodity price derivative (income)/loss | (293 | ) | (4,399 | ) | (18,658 | ) | 17,757 | |||||
| Net income (loss) | 14,970 | 3,224 | 57,129 | (12,199 | ) | |||||||
| Basic and diluted net income (loss)(US$/share) | 0.02 | 0.00 | 0.07 | (0.02 | ) | |||||||
| Capital expenditures | 26,114 | 3,354 | 55,590 | $ | 35,982 | |||||||
| Operating | ||||||||||||
| Average production (bopd) | 9,508 | 2,444 | 8,567 | 5,428 | ||||||||
| Average sales (bopd) | 9,142 | 2,327 | 8,856 | 5,777 | ||||||||
| Average Brent price ($/bbl) | 73.46 | 43.34 | 67.76 | 40.90 | ||||||||
| Contracted sales price, gross ($/bbl) | 71.06 | 43.15 | 65.67 | 42.50 | ||||||||
| Netback ($/barrel)(1) | 35.18 | 10.86 | 32.77 | 14.46 | ||||||||
| Funds flow provided by (used in) operations(1) | 18,648 | (5,588 | ) | 42,742 | 9,023 | |||||||
| Balance sheet | ||||||||||||
| Cash and restricted cash | 57,655 | 9,788 | ||||||||||
| Working capital | 56,455 | (30,407 | ) | |||||||||
| Total assets | 373,261 | 205,531 | ||||||||||
| Current liabilities | 69,785 | 62,355 | ||||||||||
| Equity | 195,572 | 126,253 | ||||||||||
Note:
(1) Funds flow provided by (used in) operations and netback do not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures for other entities. See "Non-GAAP Measures".
Q3 2021 Selected Operational Highlights
Q3 2021 production guidance under restricted flow conditions early in quarter. Production averaged 9,508 bopd for Q3 2021 compared to guidance of 9,655 bopd and 8% above Q2 2021 production of 8,839 bopd. PetroTal currently has nine producing wells and two water disposal wells.
Commenced production of well 8H on September 4, 2021. The well was drilled and completed at a final cost of $11.8 million, 3% under revised budget, has produced over 400,000 bbls of oil in the first 60 days of production, and paid out in 40 days. The robust performance of the 8H well enabled PetroTal to meet Q3 2021 production guidance with the well delivering 7,700 bopd for 25 days in September 2021. This contributed materially in the quarter to offset the constrained production from pipeline disruptions that impacted PetroTal delivering into the ONP in July and August 2021.
New horizontal well 9H. PetroTal commenced drilling well 9H on September 29, 2021. The drilling operation is progressing well, however challenges encountered with the new mud system, required a sidetrack and a recalibration of the mud formula. The completion date of the well is delayed by approximately three weeks and the well cost increased by $1.7 million to approximately $15.5 million. The revised estimated completion date of the 9H well is now in early December 2021, pushing approximately 170,000 barrels of flush production into January 2022, and resulting in revised guidance for Q4 2021.
Revised Q4 2021 guidance. PetroTal has updated 2021 guidance as shown below, due to the 9H drilling delay and the slightly constrained production levels in November to match with barging availability and continued closure of the ONP. Additionally, capital expenditures will be lower due to COVID-19 limitations relating to worker capacity in the oil field, resulting in deferral of minor infrastructure projects into 2022.
| 2021 Guidance Summary | New | Previous | Variance |
| Realized 2021 Brent Price ($/bbl) | $71.80/bbl | $67.30/bbl | $4.50 |
| 2021 Production Range (bopd) | 9,500 - 10,500 | 10,000 - 11,000 | (500) |
| Q4 2021 Production (bopd) | 12,500 - 13,500 | 16,000 - 16,500 | (3,000) - (3,500) |
| 2021 Exit Production (bopd) | 15,000 - 16,000 | 17,000 - 18,000 | (2,000) |
| Oil Wells Commenced | 4 | 4 | 0 |
| Oil Wells Completed | 3 | 3 | 0 |
| Net operating income | $120 - $125 million | $155 - $160 million | ($30 - $35 million) |
| EBITDA | $105 - $110 million | $140 - $145 million | ($30 - $35 million) |
| CAPEX | $92.0 million | $100 million | ($8 million) |
Sales and marketing update. One Brazilian export was concluded in Q3 2021 for approximately 226,000 barrels. The sale was processed during record low river levels, which constrained the barging activity in the quarter and delayed additional cargos. PetroTal anticipates an additional 300,000 - 350,000 barrels to be sold via the Brazilian route in Q4 2021. Access to the Brazil export route plays a key role in keeping production volumes stable during disruptions in ONP service.
CPF-2 entering final stages of completion. CPF-2 is in the final weeks of completion of the crude processing facility, along with increased water disposal system, and expects commissioning in mid January 2022.
Q3 2021 Selected Financial and Corporate Highlights
Continued strong liquidity position. PetroTal's overall liquidity position continues to be strong with a $57.7 million ($26.7 million restricted) ending total cash position at September 30, 2021 compared to $79.5 million ($25.4 million restricted) at June 30, 2021. Accounts receivable and payables increased in Q3 2021 to $26.0 and $40.6 million, respectively, from $20.1 and $38.6 million, respectively, in Q2 2021. Given PetroTal had additional capital spending intensity in Q3 2021 over Q2 2021, and payable balances remained relatively flat, this demonstrates that the Company used less vendor financing in Q3 2021 compared to previous quarters. PetroTal reported net debt of approximately $53.2 million for bond covenant purposes which corresponded to a 0.54x Net Debt to EBITDA ratio as at September 30, 2021, significantly below the bond covenant maximum.
Realized revenue. Strong Brent levels in Q3 2021 resulted in revenue after differentials and transportation fees of $44.8 million ($53.24/bbl), an increase of 5% over $42.8 million ($53.20/bbl) in Q2 2021.
Continued robust Net Operating Income ("NOI"). PetroTal generated $29.6 million ($35.18/bbl) of NOI in the quarter, flat over Q2 2021, due to higher realized Brent prices and increased oil production, offset by higher diluent and barging costs.
Operating costs. Operating costs increased quarter over quarter to $12.6 million ($14.97/bbl) for Q3 2021 from $10.8 million ($13.45/bbl) in Q2 2021 due to increased barging storage costs from the temporary pipeline pump station closure. In addition, diluent and diesel costs continued to increase in conjunction with Brent oil price.
Capital expenditures ("CAPEX"). Capital expenditures for Q3 2021 totaled $26.1 million, up 17% from Q2 2021 of $22.1 million as a result of additional drilling activity. Approximately 70% of Q3 2021 capital expenditures were drilling related as the Company drilled and completed well 8H, implementing the latest autonomous inflow control device technology for its completion. Necessary modifications to the water disposal system were completed in Q3 2021 and the field can now actively dispose of approximately 80,000-100,000 barrels of water per day with direct line connections to disposal wells now in place. Year to date capital expenditures were $55.6 million, approximately $20 million below guidance due to well 9H having a delayed start from additional water disposal optimization work in Q2 2021, and certain other minor infrastructure projects deferred into Q4 2021 and Q1 2022. Q4 2021 has a revised estimated Capex of approximately $36 million compared to previous guidance of $44 million.
Positive free cash flow generation year to date. PetroTal is pleased to announce it generated $6.0 million in free cash flow for the nine months year to date in 2021 (before changes in working capital and after capex, interest and factoring costs). The Company expects to end 2021 in a free cash flow neutral position pivoting to a substantial and ongoing free cash flow generation profile in 2022 and beyond.
Continued net income. Net income for Q3 2021 was $15.0 million versus $11.4 million in Q2 2021. Based on low depletion charges from $210 million invested in the Bretana asset since 2018, favorable commodity prices and a strong operating cost structure, continued positive earnings are anticipated. This is the sixth straight quarter of net income for PetroTal which positions it well, from a retained earnings perspective, to adopt a robust future return of capital policy.
Derivative asset. As at September 30, 2021, 3.1 million barrels of oil have been sold into the ONP and remain in the pipeline or storage tanks awaiting final sale by Petroperu. This has generated an estimated $38.1 million derivate asset as at September 30, 2021, which will be realized as true-up proceeds when these barrels reach the Bayovar Port and sold by Petroperu.
Hedging update. At September 30, 2021, and from October 2021 until June 2022 PetroTal has approximately 1.5 million barrels hedged corporately, at prices ranging between $60 and $70/bbl Brent. The 2022 hedges represent approximately 25% of H1 2022 forecast production and use put options allowing PetroTal to realize further Brent upside in 2022.
Q3 2021 Other Selected Highlights
Free cash flow(1) allocation intention. Based on continued robust commodity prices, PetroTal anticipates material free cash flow over from Bretana over the next three to five years. The free cash flow allocation strategy most beneficial to shareholders is to first reduce debt when a prudent cash window in mid to late 2022 presents itself. Upon elimination of the Company's debt burden, PetroTal intends to implement a dividend and/or share buyback strategy late in 2022 as cash balances are anticipated to grow substantially.
(1) For a description of free cash flow, see Reader Advisories - Non GAAP Measures below.
ONP pump stations update. PetroTal advises that pump station 5 has not yet resumed operations and pump station 1 has recently been shut down as the Indigenous protests escalate. Currently PetroTal is still able to continue producing due to the availability of the Brazilian sales route, however, if the protests persist beyond November 30, 2021, production will have to be curtailed. Peruvian government representatives are currently discussing a peaceful resolution.
Community relations update. In an effort to facilitate alignment between government and community, PetroTal has taken the initiative and submitted a proposal to the Peruvian Ministry of Energy and Mines as well as PeruPetro, outlining a new proposed Social Fund ("The Fund") which will require a modification of the existing license contract for Block 95. The Fund aims to promote investments so the Loreto Region can once again produce over 100,000 bopd. Highlights are as follows:
- The Fund will be based on 2.5% of crude oil production, calculated using the same methodology as PeruPetro applies for royalty purposes;
- A trust will be created to ensure transparent use of the funds into the local communities, for the benefit of all and without discrimination; and,
- The trust will be audited by an independent agency.
The Fund should entitle PetroTal to:
- A 10 year increase to the license term;
- Fewer social disruptions for smoother production operations; and,
- Better alignment on long term production goals, growth, and development plans by the Peruvian government, communities, and PetroTal shareholders.
In addition to The Fund, PetroTal is also promoting that one fifth of the Canon, which is equivalent to approximately 18.75% of the value of the production that goes to the Loreto Region, be redistributed to the producing districts. To accomplish this, the current Canon distribution law for the Loreto Region will need to be updated. The outcome will allow the respective local municipalities, where production originates, to receive much higher amounts of Canon allowing them to increase their budgets at least tenfold.
Updated Corporate Presentation. Please see PetroTal's website for an updated version.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented
"We are pleased to report another strong quarter from both technical and financial perspectives. During the quarter, our operational team delivered a near record setting well in 8H allowing PetroTal to achieve a record daily field production high of 16,140 bopd, a level previously unseen at PetroTal. We also demonstrated operational excellence by testing our facilities at full capacity of fluid volumes with great results. The 9H drill is proceeding nicely with continued learning and operational calibration for the synthetic mud system. From a commercial perspective, we continue to successfully navigate social headwinds demonstrating leadership with initiatives that are proving valuable in H2 2021 and should provide a lasting and more stable alignment between the Government and communities."
ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains 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, including the Company's five year plan and the anticipated benefits thereof; future consolidation activity and organic growth; future intentions with respect to debt reduction and return of capital to shareholders, including dividends and share buybacks; drilling, completions, workovers and other activities and the anticipated costs and results of such activities; the ability of the Company to achieve drilling success consistent with management's expectations; the ability of the Company to achieve near term production targets; anticipated future production and revenue; drilling plans including the timing of drilling, commissioning, and startup; startup plans for oil and water treatment infrastructure, including the timing of startup plans and the impact of delays thereon; oil production levels, including average production and exit production in 2021; the 2021 capital program and budget, including drilling plans; expectations regarding accrued drilling costs on deferred wells and allocation of flush production benefits; the timing of river embankment erosion work; COVID-19 surveillance and control process; hedging program, the terms thereof, and the Company's expectations regarding its hedged positions; cargo loading and shipments, including the timing of loading and shipping and expectations regarding sales from cargo shipments; the Company's expectations regarding net operating income, netbacks and free cash flow; the Company's long-term sustainability objectives and targets, and the timing thereof; the Company's proposals for continuous investment in the energy sector and collaboration with local communities; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. 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. Without limitation of the foregoing, future dividend payments, if any, and the level thereof, is uncertain, as the Company's dividend policy and the funds available for the payment of dividends from time to time is dependent upon, among other things, free cash flow financial requirements for the Company's operations and the execution of its growth strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors beyond the Company's control. Further, the ability of PetroTal to pay dividends will be subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness. 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, the ability of the Ministry of Energy to effectively achieve its objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, including pursuant to hedging arrangements, 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 volatility, price differentials and the actual prices received for products, 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. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the MD&A and the most recent annual information form 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: References in this press release to 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. The Company cautions that such results should be considered to be preliminary.
OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in NI 51-101. All references to Brent indicate Intercontinental Exchange ("ICE") Brent.
NON-GAAP MEASURES: This press release contains financial terms that are not considered measures under generally accepted accounting principles ("GAAP") such as EBITDA, netback, funds flow provided by (used in) operations and free cash flow that do not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. Management uses these non-GAAP measures for its own performance measurement and to provide shareholders and investors with additional measurements of the Company's efficiency and its ability to fund a portion of its future capital expenditures. EBITDA is calculated as consolidated net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortization adjusted for certain non-cash, extraordinary and non-recurring items primarily relating to unrealized gains and losses on financial instruments and impairment losses. PetroTal utilizes EBITDA as a measure of operational performance and cash flow generating capability. EBITDA impacts the level and extent of funding for capital projects investments. Netback is calculated by dividing net operating income by barrels sold in the corresponding period. Funds flow provided by operations, is a non-GAAP measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. A reconciliation from cash provided by operating activities to funds flow provided by operations is included in the MD&A.
FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's five year plan, debt reduction, dividends and share buybacks; prospective results of operations, production and production capacity, 2021 capital program and budget, free cash flow, liquidity 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 approved by management as of the date of this press release and was included 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 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/104110