PetroTal Corp. ("PetroTal" or the "Company") is pleased to provide the following operational and financial updates. All amounts are in US dollars unless stated otherwise.
Key Highlights
PetroTal corporate production averaged approximately 19,150 bopd in Q4 2024, including volumes from the recently acquired Block 131
Bretana Q4 2024 production averaged 18,938 barrels of oil per day (bopd), a 27% increase on Q4 2023
Bretana 2024 annual production averaged 17,733 bopd, a 24% increase on 2023, and above guidance of 16,500 - 17,500 bopd
Total cash of $115 million as of December 31, 2024, a 3% increase on Q4 2023
PetroTal secures two Technical Evaluation Agreements (TEA's) surrounding Block 131 in Peru
PeruPetro extends current exploration period for Block 107 to February 2027
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"PetroTal finished 2024 on a strong note, with production from our Bretana field hitting new highs in Q4. We ended the year with a cash balance of $115 million, which puts the Company in a good position to support its ongoing dividend and capital programs in 2025.
I am pleased to announce that PetroTal has been granted two new Technical Evaluation Agreements in Peru's Ucayali Basin, immediately surrounding and on trend with our recently acquired Block 131. Several exploration prospects have already been identified on existing seismic coverage, setting up a new high-potential core area for the Company in central Peru.
PeruPetro has also worked with us to extend the current exploration period for Block 107 to February 2027, which will give us ample time to undertake an exploration program at the Osheki-Kametza prospect. Peru's oil industry is open for business, and we continue to see plenty of interesting business development opportunities in the country.
We are in the final stages of approving our 2025 budget and guidance update and look forward to providing more details on January 16. PetroTal delivered on its growth and return of capital objectives in 2024, and we will continue to deliver for investors in 2025."
Q4 2024 Production Update
PetroTal's production averaged approximately 19,150 bopd in Q4 2024, a new record for the Company. This total includes 18,938 bopd from the Bretana field at Block 95, and a quarterly average contribution of 212 bopd from the Los Angeles field at Block 131, where PetroTal holds a 100% WI in production from the closing date of its acquisition on November 29, 2024.
Following the conclusion of the annual dry season in early October, PetroTal's operations team responded quickly to rising river levels, restoring Bretana field production to capacity by October 15. As a result, Bretana's Q4 2024 quarterly average production increased 25% compared to the prior quarter, and 28% compared to Q4 2023.
2024 annual average production from the Bretana field was 17,733 bopd, slightly above the high end of PetroTal's guidance range of 16,500 to 17,500 bopd, and an increase of 24% compared to the 2023 annual average of 14,248 bopd. According to public production data from PeruPetro, fiscalized Los Angeles field production averaged 784 bopd in 2024, and 624 bopd in Q4 2024.
Since the closing of the acquisition of Block 131 on November 29, 2024, PetroTal has been operating the asset under the name "Ucawa Energy". As a result, public disclosure from Peruvian regulators relating to Block 131 may include this corporate name, which is a wholly owned subsidiary of PetroTal Corp.
Drilling & Completion Update
As previously announced with Q3 2024 results, PetroTal completed well 21H at Bretana on November 9. This well was brought onstream on November 17 at a flush production rate of 7,144 bopd, before producing at an average rate of 2,522 bopd over the next 30 days. PetroTal spudded well 22H at Bretana on November 12; this well was completed ahead of schedule on December 19, in-line with budget expectations at $12.0 million. The Company will provide an update on initial flow rates once the well has been onstream for at least 30 days.
PetroTal spudded well 23H at Bretana on December 23. This well is expected to be completed by the end of January 2025, at which point the Company plans to release its current drilling rig and pause the Bretana development drilling program. As previously contemplated when PetroTal announced an acceleration of its capital program with Q2 2024 results in August 2024, flush production from wells 22H and 23H will be used to manage field output in-line with installed fluid handling capacity throughout H1 2025.
Cash & Liquidity Update
PetroTal ended 2024 in a healthy liquidity position, exiting the year with total cash of approximately $115 million, of which $103 million was unrestricted. This compares to total cash of $133 million at the end of Q3 2024, and $111 million at the end of 2023. PetroTal ended the year with accounts payable and receivable of $88 million and $85 million, respectively.
During Q4 2024, PetroTal continued preparatory work for its erosion control project. Recall that PetroTal's Q3 2024 financial results included a $7.3 million inventory provision for the purchase of steel components related to this project. These components will be recorded as an operating expense in Q4 2024. Q4 2024 also included the previously announced acquisition of Block 131, which closed on December 1. Cash consideration of $6.1 million for this asset was essentially offset by the assumption of a cash balance of $5.9 million on closing. This cash balance reflects the cumulative cash flow from this asset between the effective date of the acquisition on January 1, 2024, to its closing date on November 29, 2024.
Pursuant to its ongoing share buyback program, PetroTal repurchased 1.5 million shares in Q4 2024, at an average price of US$0.46/share. The Company also paid a dividend of $13.7 million (US$0.015/share) on December 13, 2024, related to Q3 2024 operations.
Exploration Update
PetroTal signed a contract extension with PeruPetro for the exploration Block 107, in Peru's Ucayali Basin, in December 2024. This extension of the Fifth Exploration Period, which was granted to account for force majeure periods in the interim, will now last until February 2027, providing ample time to undertake an exploration program at the Osheki-Kametza prospect.
PetroTal also signed two Technical Evaluation Agreements (TEA's) with PeruPetro in December 2024. The TEA's for Blocks XCVII and XCVIII are located in the vicinity and on trend with PetroTal's Block 131, as well as the Aguaytia and Agua Caliente fields in Peru's Ucayali Basin. These new evaluation contracts offer growth potential in proven exploration acreage near our existing operations in the Ucayali Basin. Blocks XCVII and XCVIII include acreage that was previously relinquished from the present-day Block 131 and contain several drillable prospects and leads identified with existing 2D seismic coverage in the producing Cushabatay light oil play. Contractual commitments will be executed in two 12-month phases, and mainly include geological and geophysical studies such as seismic imaging, geochemical modelling and hydrocarbon potential evaluation reports. The TEA's also grant PetroTal the option to convert the blocks to exploration licenses within the next 24 months.
2025 budget guidance webcast link for January 16, 2025
PetroTal will host a webcast following its 2025 budget and guidance release on Thursday January 16, 2025 at 9am CT (Houston), 3pm GMT (London). Please see the link below to register.
https://brrmedia.news/PTAL_CB25