PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the following operational updates, voting results from the annual shareholder's meeting, director resignation and appointment of a new joint broker.
Illegal River Blockade Removed
On June 10, 2023, The Indigenous Association for Development and Conservation of Bajo Puinahua ("AIDECOBAP") removed the illegal river blockade that commenced on June 3, 2023. The blockade removal also included releasing both the Peruvian and Brazilian oil convoys seized early in the demonstration. No injuries to crew members were reported after their release and no oil spills or operational accidents occurred through the transition.
AIDECOBAP agreed to remove the illegal blockade after an alliance act ("Acta") promoted by the Regional Governor of Loreto was signed by the Regional Governor, Perupetro, Puinahua's District Municipality ("PDM") and AIDECOBAP; but was not signed by the Junta Autonoma del Puinahua ("JAP") that represents the majority of the population, nor by PetroTal. The Acta also reconstituted the 2.5% Fund's Executive Committee by removing PetroTal's representation, and adding the Regional Government of Loreto, in its place. The other four members remained, which include AIDECOBAP, the JAP, Perupetro, and the PDM. The Company does not recognize the Acta or consider it a binding legal document. Given the lack of alignment, we are encouraged that the Prime Minister's Governance Office has taken the lead in ensuring a peaceful and long-lasting resolution.
Removal of the illegal blockade and release of the oil convoys is a positive step for the overall safety in the Loreto area, however, per the above, the Company remains cautious, yet hopeful, that democracy will prevail in deciding who best manages the social fund and the best allocation of its resources in the future.
Operations Update
With river access reopened, the Peruvian and Brazilian oil convoys have resumed their travel to Iquitos and Bretana, respectively. PetroTal's field had been shut in since June 6, 2023 for planned technical maintenance/installation work as previously announced, which the Company completed on June 11, 2023, initiating line fill operations concurrently. PetroTal quickly ramped up production averaging nearly 22,000 barrels of oil per day ("bopd") for the past seven days. Though the river blockade disrupted operational logistics, the Company anticipates being able to maintain production near 22,000 bopd, subject to barge availability, over the coming weeks. At these levels, the Company estimates that average production during Q2 2023 would be 5% higher than the 17,000 bopd production guidance previously given.
Robust Production From Well 15H
Well 15H, formally commenced full daily production on June 12, 2023 after the river blockade was lifted and the well could be completely opened. The well was completed on schedule and at a cost of approximately $14.9 million, which included a sidetrack caused by drilling tool challenges. Over the past seven days the well has produced at an average rate of 8,700 bopd, ranking it near the top of initial producers drilled to date.
Completed Dividend Payment
PetroTal is pleased to announce the first successful funding of its reinitiated dividend on June 15, 2023 of approximately $14.5 million based on Q1 2023 results. The Company plans to set and approve its Q2 2023 dividend level at its upcoming early August 2023 board meeting.
AGM Voting Results
The Company is pleased to announce that all resolutions at the annual general and special meeting of shareholders held on June 15, 2023 were fully authorized and approved. A total of 376,662,086 common shares representing approximately 42.6% of PetroTal's issued and outstanding common shares were represented by shareholders present in person or by proxy at the meeting.
At the meeting, by ordinary resolution, shareholders approved setting the number of directors to be elected at the meeting at seven. However, management only designated six nominees, with one space left vacant for an additional director to be added as may be advisable during the forthcoming year. Votes For (Percentage): 376,040,727 (99.84%)
The Company also announces the retirement of Mr. Luis Carranza from the PetroTal board, effective June 15, 2023. Mr. Carranza did not seek re-election at the annual shareholder's meeting. PetroTal thanks Mr. Carranza for his service to the Company since September 2022.
In addition, shareholders approved by ordinary resolution the appointment of Deloitte LLP as auditors of the Company to hold office until the next annual meeting, and the directors were authorized to fix their remuneration. Votes For (Percentage): 375,890,561 (99.80%)
At the meeting, shareholders approved by ordinary resolution the Company's new stock option plan as set forth and described in PetroTal's management information circular dated May 3, 2023 (the "Circular") and the grant of unallocated stock options issuable under this stock option plan. Votes For (Percentage): 274,804,261 (81.68%)
At the meeting, shareholders approved by ordinary resolution the Company's new performance and restricted share unit plan as set forth and described in the Circular and the grant of unallocated share units issuable thereunder. Votes For (Percentage): 268,494,613 (79.80%)
PetroTal Welcomes Peel Hunt LLP as Joint Broker
PetroTal is please to announce the appointment of Peel Hunt LLP ("Peel Hunt") as joint broker with immediate effect, alongside Stifel Nicolaus Europe Limited. The Company would like to welcome Peel Hunt and thank Auctus Advisors for their contribution since inception of the Company.
