CALGARY and HOUSTON, Nov. 15,
2018 /CNW/ - PetroTal Corp. ("PetroTal" or the
"Company") (TSX-V: TAL) is pleased to announce that it has
successfully increased oil production from the Bretaña Norte
discovery well (the "Discovery Well" or the "Well") at the Bretaña
field in Block 95, Peru. The
Company is also pleased to provide a further update on operations
at Bretaña as well as selected financial information as of
September 30, 2018. All figures
referred to in this press release are denominated in U.S.
dollars.
Operations Highlights
- Successful installation and commissioning of oil production and
water handling facilities, completed on schedule and under
budget
- Production from the Discovery Well increased to over 2,000
barrels of oil per day ("BOPD"), with over 100,000 barrels of crude
oil produced to date
- Bureau Veritas' evaluation of oil sample demonstrates lighter
19.2 degree API oil and lower viscosity
- Mobilizing drilling rig to Bretaña with the expectation of
spudding the first of a three well program in February 2019
- Approximately $27 million in
liquidity as of September 30, 2018,
with no debt
Production Update
The Company initially provided guidance that the Discovery Well,
which had been tested but not put on production, could commence
production in 10 to 12 months from PetroTal taking over operational
control of the field in late December
2017. The Company subsequently announced that, on
June 1, 2018, the well was placed on
production through long-term testing, allowing for the start of the
well test under natural flow and the commissioning of the newly
installed oil production facilities, five months earlier than
anticipated. As previously announced, the Company restricted
the well flow rates to avoid water production until the required
water injection facilities were installed and commissioned.
The first phase of water handling equipment and reinjection
pumps were installed on schedule, commissioned and currently
functioning to allow the well to produce 2,000 BOPD.
Manolo Zuniga, President and
Chief Executive Officer of PetroTal, stated:
"The Discovery Well is producing over 2,000 barrels of oil
per day. Commissioning of the water re-injection facilities
was seamless and now we are engineering the next phase that will be
installed in the fourth quarter of 2019, allowing us to accelerate
the production ramp up."
"Last week the team celebrated a significant milestone as the
Discovery Well surpassed 100,000 barrels of crude oil production,
much sooner than expected. Additionally, we sent a crude oil
sample to Bureau Veritas for evaluation and we are pleased with the
resulting lighter crude quality and lower viscosity. This is
important for two reasons: first it should allow PetroTal to
improve netbacks per barrel by using less diluent than budgeted;
and secondly we will now have more reliable data when updating our
reserves with our third party reserve engineers. We are
currently mobilizing a rig to drill Bretaña's second oil well,
expected to spud in February and be placed on production in late
March 2019."
ABOUT PETROTAL
PetroTal is a publicly-traded 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 field in Peru's
Block 95 where oil production was initiated in June 2018. The Company's management team has
significant experience in developing oil fields 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.
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; drilling,
reactivation, water and other activities and the anticipated costs
and results of such activities, including with respect to the
Discovery Well; cost controls and savings; anticipated future
production and revenue; and future development and growth
prospects. 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 annual
information form for the year ended December
31, 2017 and management's discussion and analysis for the
three and six months ended June 30,
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: This press release contains metrics
commonly used in the oil and natural gas industry, such as
netbacks. These terms have been calculated by management and do not
have a standardized meaning and may not be comparable to similar
measures presented by other companies, and therefore should not be
used to make such comparisons. Management uses these oil and gas
metrics for its own performance measurements and to provide
shareholders with measures to compare PetroTal's operations over
time. All oil and gas disclosure contained in this press release
complies with the requirements of 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, netbacks, operating costs 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 made 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.
SOURCE PetroTal Corporation