PetroTal Corp.has completed the BN-8H ("8H") well, PetroTal's fourth horizontal well in the Bretana oil field.
Bretana field achieves record production of approximately 15,400 bopd
PetroTal commenced production of its fourth horizontal well 8H on September 4, 2021 with unrestricted flow rates of approximately 7,600 barrels of oil per day ("bopd") over a ten-day period. Selected highlights are as follows:
- Initial 8H production rates of 7,500 - 8,000 bopd; and,
- Total current field production is now approximately 15,400 bopd, a record production level for PetroTal.
Completion of well 8H below budget
- The 8H well cost came in 3% under budget, at US$11.8 million;
- 8H estimated payout of 8-10 weeks production based on current Brent oil strip, assuming unrestricted rates;
- Well 8H targeted oil sand intersected 4 meters higher than prognosed; and,
- The horizontal section of the 8H well was completed with autonomous inflow control device technology ("AICD"), which will better control water influx.
North Peruvian Pipeline ("ONP") Update
PetroTal was able to achieve record field production rates at Bretana due to the ONP being operational again, allowing the Company to unload the approximately 140,000 barrels of oil stored in barges at Pump Station No.1. The ability to store oil in barges combined with back-to-back exports to Brazil and deliveries at the Iquitos Refinery have proven PetroTal's ability to manage ONP disruptions.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"The initial flow rates from well 8H are very exciting and echo the profile of the prolific 5H horizontal well. Similarly, the clean sands of the 8H well reflect what we have observed in the recently drilled 7D well and the cores obtained in the 3WD water disposal well. It is also rewarding that we have now achieved a new record field production level of 15,400 bopd. The flush production seen from 8H is being monetized into some of the highest Brent oil price markets we have seen all year, providing a significant cash flow impact. Over the next few weeks, we expect to commence drilling the next horizontal well ("BN-9H") in our 2021 campaign. On behalf of PetroTal, I would like to take this opportunity to thank Prime Minister Guido Bellido and the Minister of Energy and Mines, Ivan Merino Aguirre, for responding to the ONP communities' concerns with in-person negotiations to resolve the matter quickly and peacefully that allowed us to achieve this new record production."
