PetroTal Corp. has commenced drilling development well BN-9H (“9H”), the Company’s next horizontal well, and continued robust field production in excess of 15,000 barrels of oil per day (“bopd”). All amounts herein are in United States dollars (“USD”) unless otherwise stated.
Well 9H drilling commencement
PetroTal recently commenced drilling the 9H well, PetroTal’s fifth horizontal well drilled by the Company, and the tenth oil producer.
- This will be PetroTal’s longest reach horizontal well to date;
- The well cost is approximately $13.9 million and is the first to be drilled with a synthetic mud system;
- Drilling and completion should be finished in the second half of November 2021; and
- The well is expected to contribute materially to exit 2021 production.
Bretana field continues to achieve robust field production
- Bretana’s average field production for the ten days ended September 27, 2021 was 15,494 bopd;
- Demonstrates success of the revised water disposal strategy, allowing full water disposal into the two disposal wells;
- Using an $80/bbl Brent oil price and PetroTal’s estimated EBITDA netback of approximately $47/bbl, annualized earnings before interest, taxes, depreciation and amortization (“EBITDA”) at 15,000 bopd would be approximately $255 million; and
- This expected significant EBITDA growth will easily allow PetroTal to complete the remaining Bretana development wells, retire the bond obligations early and examine ways to return value to shareholders, in due course.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“We are entering the fourth quarter in the strongest position PetroTal has seen, from both an operational and financial perspective. The recent rise in Brent oil prices has created an environment for substantial returns on invested capital and we look to continue our momentum into Q4 2021, and beyond. PetroTal is showing it is well positioned as a dynamic emerging market play, given our strategic investment in Peru’s Bretana field, that is delivering strong results.”
