PetroTal Announces Operations
Update
Well 20H to be completed in the Vivian
1 and Vivian 2 sands
Updated corporate presentation
available on website
Calgary, AB and Houston, TX -
September 3, 2024-PetroTal
Corp. ("PetroTal" or the
"Company") (TSX: TAL, AIM:
PTAL and OTCQX: PTALF) is pleased to announce the following
operational update.
Well 20H Drilling Update and Upper Vivian Sand
Test
As disclosed previously with the Q2
2024 results on August 8, PetroTal commenced drilling Well 20H at
the Bretaña field on July 26, 2024. The 20H well has allowed for
the evaluation and testing of the upper Vivian formation sand
("VS1"), which for the first time will be jointly completed with
the main Vivian 2 ("VS2") sand.
For background, the Vivian formation
at Bretaña consists of two primary sand bodies. So far, PetroTal
has only produced from the VS2 sand, where permeability is an order
of magnitude greater than the VS1 sand. As of year-end 2023,
Netherland, Sewell and Associates, Inc. estimated that about 20% of
the 442 million barrels of 2P original oil in place at the Bretaña
field is assigned to VS1, while all 2P reserves are allocated to
VS2.
The 20H well design included a short
test of the VS1, to acquire crude samples and test production
deliverability. During a brief production test, the VS1
flowed at an equivalent rate of approximately 320 barrels of oil
per day of 18.6 API oil, which is of similar gravity to the VS2
oil.
PetroTal has decided to complete the
20H well in both sands. Once sufficient production data has
been collected, the Company will evaluate the possibility of
amending its field development plan to include the VS1, with a view
to potentially including the unit in Bretaña's future 2P oil
reserves certification. If expectations of low production of
formation water volumes from the VS1 are confirmed, oil produced
from the VS1 conceptually should not require additional water
treatment facilities to be constructed.
The well is now drilling ahead in
the main VS2 target and is expected to be completed by the end of
September.
Manuel Pablo Zuniga-Pflucker,
President and Chief Executive Officer, commented:
"Producing from the VS1 formation
could add meaningful production from PetroTal's existing well
stock, incrementally improving reserves and value, as well as
decreasing unit operating costs and extending well life. Ongoing
production data will improve our understanding of the VS1 and we
will update shareholders as we develop our plans."
Corporate Presentation
PetroTal has posted an updated
corporate presentation on its website. Please visit the link below
to view the presentation in full:
https://petrotalcorp.com/investors/
Qualified
Person's Statement
Max Torres, the Vice President of Exploration for
PetroTal, who has over 35 years of relevant experience in the oil
industry, has approved the technical information contained in this
announcement. Mr. Torres received a Bachelor of Science degree in
Geology from the Universidad Nacional de Tucumán, Argentina, and a
Master of Science degree from Georgia State University.
ABOUT
PETROTAL
PetroTal is a publicly traded,
tri‐quoted (TSX: TAL, AIM: PTAL and OTCQX: 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 2022, PetroTal became the 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.sedarplus.ca,
or below:
Camilo McAllister
Executive Vice President and Chief
Financial Officer
Cmcallister@PetroTal-Corp.com
T: (713) 253-4997
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) 20 7770 6424
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
T: +44 (0) 20 7710 7600
Peel Hunt LLP (Joint
Broker)
Richard
Crichton / David McKeown / Georgia Langoulant
T: +44 (0) 20 7418
8900
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: oil production levels
and production capacity; PetroTal's 2024 program for
drilling,
completions and other activities; plans and expectations with
respect to the OCP and Ecuador export pilot (including the
expectation that pilot oil will travel approximately 1,000 km by
barge to Block 19); and PetroTal's expectations with respect to
projects and key initiatives to be financed with contributions from
the Social Trust Fund. 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", "intend" and similar expressions. The forward-looking
statements provided in this press release are based on management's
current belief, based on currently available information, as to the
outcome and timing of future events.
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 to obtain and
maintain necessary permits and licenses, the ability of government
groups to effectively achieve 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 impact of inflation
on costs, 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, future river
water levels, the Company's growth strategy, general economic
conditions and availability of required equipment and
services. PetroTal cautions that
forward-looking statements relating to PetroTal are subject to all
of the risks, uncertainties and other factors, which may cause the
actual results, performance, capital expenditures or achievements
of the Company to differ materially from anticipated future
results, performance, capital expenditures or achievement expressed
or implied by such forward-looking statements. Factors that
could cause actual results to differ materially from those set
forth in the forward-looking statements 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),
business performance, legal and legislative
developments including changes in tax laws and 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, credit ratings and risks, fluctuations in
interest rates and currency values, changes in the financial
landscape both domestically and abroad, including volatility in the
stock market and financial system, wars (including Russia's war in
Ukraine and the Israeli-Hamas conflict),
regulatory developments, 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, changes in the financial
landscape both domestically and abroad (including volatility in the
stock market and financial system) and the occurrence of
weather-related and other natural catastrophes. Readers are
cautioned that the foregoing list of factors is not exhaustive.
Please refer to the annual information form for the year ended
December 31, 2023 and the management's discussion and analysis for
the three months ended March 31, 2024 for additional risk factors
relating to PetroTal, which can be accessed either on PetroTal's
website at www.petrotal-corp.com
or under the Company's profile on
www.sedarplus.ca.
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 REFERENCES: All references to "oil" or "crude oil"
production, revenue or sales in this press release mean "heavy
crude oil" as defined in National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities ("NI
51-101").
SHORT TERM RESULTS: References in this press release to peak
rates, initial production rates, current production
rates, 30-day 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 of PetroTal. The
Company cautions that such 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 and production results, 2024 drilling program and
budget, well investment payback, cash position, 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 and its
management believe that FOFI has been prepared on a reasonable
basis, reflecting management's best estimates and judgments, and
represent, to the best of management's knowledge and opinion, the
Company's expected course of action. However, because this
information is highly subjective, it should not be relied on as
necessarily indicative of future results. 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. Changes in forecast commodity prices, differences in the
timing of capital expenditures, and variances in average production
estimates can have a significant impact on the key performance
measures included in PetroTal's guidance. The Company's actual
results may differ materially from these
estimates.