PetroTal Corp. (TAL) (PTAL) (PTALF) (“PetroTal”) is pleased to announce the 30-day initial production rate of over 7,700 barrels of oil per day (“bopd”) for well BN-8H (“8H”). All amounts herein are in United States dollars (“USD”) unless otherwise stated.
Significant 30 day initial production rate for well 8H
- Well 8H delivered over 7,700 bopd average production during its first 30 days of operation, with the most recent rate at 7,575 bopd;
- As of October 3, 2021, during its first 30 days of operation, the - well has produced 231,000 bbls;
- Well 8H is outperforming management expectations; and,
- Based on the 8H well’s ongoing performance and an expected $45/bbl oil netback, the 8H well should pay out in approximately 45 days, overall.
Backstopping 2022 cash flow with additional hedging
- PetroTal is also pleased to announce it has entered into additional put options with strike prices of $70/bbl Brent oil for approximately 25% of the H1 2022 management production profile.
Government and local community alignment update
- PetroTal continues to play a key role in bridging communication efforts between the government and local residents by promoting some of their key initiatives directly into the community; and,
- In order to create alignment with all stakeholders, PetroTal’s efforts include local labor allocation, financial support to develop sustainable projects, and intellectual resources to execute on those local projects.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“Well 8H is an example of a fantastic well performing at the most opportune time of the year, and it has also provided a wealth of reservoir data. We aim to continue delivering this type of operational quality in the future. PetroTal is also pleased to represent an important liaison in ongoing community and government social agenda matters, promoting some of their key initiatives such as Social Profitability under a fair and just distribution of the central and regional government’s fiscal share.”
