Calgary, Alberta and Houston, Texas–(Newsfile Corp. – May 28, 2019) – PetroTal Corp. (TSX: TAL) (AIM: PTAL) (“Petrotal” or the “Company“) is pleased to provide a summary of its financial and operating results for the three months ended March 31, 2019.
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 the three months ended March 31, 2019, which are available on SEDAR at www.sedar.com and the Company’s website at www.petrotal-corp.com. Reserves numbers presented herein were derived from an independent reserves report (the “NSAI Report”) prepared by Netherland, Sewell & Associates, Inc. (“NSAI”) effective December 31, 2018. All figures referred to in this press release are denominated in U.S. dollars.
2019 FIRST QUARTER HIGHLIGHTS
- Produced approximately 85,000 barrels of oil during the first quarter
- Successfully mobilized the drilling rig to the drilling pad at Bretaña to begin drilling the BN 95-2-2-2XD well in February
- Increased the net present value discounted to 10 percent (pre-tax “NPV10”) of the Company’s proved plus probable (“2P”) reserves year over year by 90 percent to $535 million as of December 31, 2018
OPERATIONS UPDATE
The Company continued the initial testing phase at the Bretaña oil field and produced an average of 944 barrels of oil per day (“BOPD”) during the quarter. The Company mobilized a drilling rig to the Bretaña field to begin development and appraisal. The Company successfully drilled and completed the BN 95-2XD well in the northern section of the field. As previously reported, the well came online at 2,250 BOPD and over the past 30 days averaged over 2,300 BOPD. The follow up well, BN 95-3H was spud on April 21, 2019 and the Company is currently drilling the horizontal section of the well. The BN 95-3H is being drilled to the offset side of the northern portion of the field and will be completed as a horizontal well in the Vivian formation.
Manolo Zuniga, President and Chief Executive Officer stated:
“The first quarter was all about execution and the team did an excellent job delivering the first well on time and on budget. We continue to drill the third oil producer which will be PetroTal’s first horizontal completion. We have a lot to accomplish this year but we are well on the way to hitting the mid-year production target of 5,000 BOPD. And finally, the NSAI Report showed a year over year increase of 90 percent increase in 2P NPV-10 to $535 million; driven mostly by the team recommending using our own produced crude oil for power generation thus reducing operating expenses going forward. We are pleased with the results to date, and we are prepared for what will be a very active middle and second half of the year.”
FINANCIAL HIGHLIGHTS
The following table summarizes key financial highlights associated with the Company’s financial performance. See the Financial Statements and the MD&A for further details.
To view an enhanced version of this table, please visit:
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ABOUT PETROTAL
PetroTal is a publicly‐traded, dual‐listed (TSX: TAL) (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s development asset is the Bretaña oil field in Peru’s Block 95 where oil production was initiated in June 2018. 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 Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing and exploiting the Bretaña oil field. More information on the Company can be found at www.PetroTal‐Corp.com.
For further information, please contact:
Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@Petrotal-Corp.com
T : (713) 609-9101
Mark Antelme / Jimmy Lea
Celicourt Communications
petrotal@celicourt.uk
T : 44 207 520 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
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to the Company’s objectives; the Company’s proposed drilling, completions and other activities and the anticipated results of such activities; cost controls and savings; anticipated future production and revenue; future development and growth prospects. 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. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s MD&A and annual information form for the year ended December 31, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
OIL AND GAS INFORMATION: The NSAI Report was prepared by NSAI, an independent qualified reserves evaluator, in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and the reserve definitions contained in National Instrument 51‐101 – Standards of Disclosure for Oil and Gas Activities (“NI 51‐101”).
References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary.
FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, NPV10 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 provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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