Continues to remain nimble even with lower oil prices

Calgary, Alberta and Houston, Texas–(Newsfile Corp. – March 10, 2020) – PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (“PetroTal” or the “Company“), the Peruvian focused E&P company, notes the following in relation to the global retraction in oil prices, and global market decline. All currency amounts are in United States dollars.

Financial Impact

In response to the sudden reduction in the Brent oil price, PetroTal has completed a sensitivity assessment of funds available from operations (“netback”) at varying oil price levels. As noted in our February corporate presentation (available on the Company’s website at, Bretaña’s netback at 15,000 barrels of oil per day (“bopd”) was 55% of the Brent oil price at $65/bbl and decreases to 37% at the Brent oil price of $30/bbl.


Based on 15,000 bopd
Brent Oil – $/bbl $65 $60 $55 $50 $45 $40 $35 $30
Netback  – $/bbl $36 $33 $28 $24 $21 $18 $14 $11
          Netback Ratio (%) 55% 54% 52% 48% 47% 45% 40% 37%
Based on 20,000 bopd
Brent Oil – $/bbl $65 $60 $55 $50 $45 $40 $35 $30
Netback  – $/bbl $38 $34 $29 $25 $22 $19 $15 $12
          Netback Ratio (%) 58% 57% 53% 50% 49% 48% 43% 40%


In some of our contracts, as Brent oil prices drop below $50/bbl, PetroTal is entitled to negotiate lower fees and tariffs to stabilize netbacks. These graduated cost reductions (included in the above table) serve to increase netbacks by approximately $3/bbl at $30 Brent.

Each barrel of oil production contributes positively towards funding all administrative costs and the Company’s capital investments. PetroTal has the benefit of not having any debt or interest expenses, and no concerns about loan covenants.

Since PetroTal maintains significant investment program flexibility, the Company has the ability to be resilient and ensure that it balances cash flow with expenditures. The Company’s previously announced $99 million capital investment program is weighted to the last half of the year and will continue to be monitored closely in light of the reduced oil price environment. Furthermore, given the strong relationship PetroTal has with its key contractors, the Company has agreed to manage payments with a number of its contractors, allowing for ongoing operation of the contractors’ crews.

Well 6H – Update

Drilling of the 6H oil well continues on schedule and on budget, and PetroTal expects to have this well on production before mid-April 2020. Being on trend with the 5H and 4H wells, and benefiting from the longer horizontal zone penetration, higher oil production is expected from the 6H well. Inclusive of the 6H well, we expect to achieve production of 15,000 bopd that, coupled with the ongoing positive netbacks, will strengthen our financial resources.

Manolo Zuniga, President and Chief Executive Officer, commented:

“PetroTal remains confident in its ability to manage oil price fluctuations through a disciplined financial approach. Our assessments show that, based on current projections and pricing environment, the Company will remain cash flow positive this year. Importantly, if the global oil price retraction continues for an extended period, PetroTal has the flexibility to defer capital investment. At this stage, our 2020 oil production guidance remains in effect and the expected success of the 6H well will contribute significantly towards our target.

On behalf of our valued shareholders, please be assured that we’ll make the right decisions, at the right time, to ensure we maintain the financial flexibility to be cash flow positive. I would like to sincerely thank our team for their continued laser-focus on all costing aspects, as well as our contractors for their ongoing support of PetroTal’s financial resources.”


PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL and AIM: PTAL) 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 the Bretaña oil field in Peru’s Block 95 where oil production was initiated in June 2018, six months after acquisition, and within 18 months has exceeded the initial 10,000 bopd goal. Additionally, the Company has large exploration upside and is actively engaged to find a partner to drill the Osheki prospect and other prospects in Block 107. The Company’s management team has significant experience in developing and exploring for oil in all of Peru’s oil producing basins and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field. More information on the Company can be found at www.PetroTal‐

For further information, please see the Company’s website at, the Company’s filed documents at, or below:

Douglas Urch
Executive Vice President and Chief Financial Officer
T: (713) 609-9101

Manolo Zuniga
President and Chief Executive Officer
T: (713) 609-9101

Celicourt Communications
Mark Antelme / Jimmy Lea
T : 44 (0) 208 434 2643

Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer
T: 44 (0) 207 409 3494

Numis Securities Limited (Joint Broker)
John Prior / Emily Morris
T: +44 (0) 207 260 1000

Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Nicholas Rhodes / Ashton Clanfield
Tel: +44 (0) 20 7710 7600


FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning PetroTal’s assessment of future plans and operations for the Company. When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by PetroTal. Although PetroTal believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: PetroTal may not obtain the required approvals from the TSX Venture Exchange and other factors more fully described from time to time in the reports and filings made by PetroTal with securities regulatory authorities. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2018 and management’s discussion and analysis for the three and nine months ended September 30, 2019 which are available on SEDAR at 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.

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