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PetroTal Beats Expectations But Peru Unrest Knocks July Production

(Alliance News) - PetroTal Corp on Thursday said second-quarter production beat analyst ...

Alliance News 11 July, 2019 | 1:00PM
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(Alliance News) - PetroTal Corp on Thursday said second-quarter production beat analyst expectations and has soared since a new well came online.

For the second quarter of 2019, production from the Bretana field onshore Peru was 3,000 barrels of oil per day, beating expectations, and once the BN 93-3D well came online this rose to 5,350 barrels a day.

PetroTal has spudded a water well at the field, which will be used for disposal, and once this is done the previous water disposal well will be converted into an oil producer.

The company has, however, had to pull back production slightly onshore Peru due to social unrest in the northern jungle region.

Local people are demanding a greater share of oil revenue, PetroTal said, a position it supports. Save for Bretana, all northern jungle oil fields cannot operate or sell their oil, but things will normalise in the next few days.

Since July 5, when the unrest began, PetroTal's overall production slipped back to 4,875 barrels of oil per day due to storage limitations.

Chief Executive Manolo Zuniga said: "We are very pleased to have achieved quarter on quarter production growth of 300%, a direct result of the team's success and experience. We averaged 3,000 barrels of oil a day in the second quarter and exceeded the production milestone of 500,000 total barrels of crude oil in June.

"We are making good progress on the water disposal well and are excited to start the workover of the existing water disposal well making it the fourth oil producer in the company's brief history."

"It is a testament to PetroTal's philosophy the Bretana field is the only one still producing normally during the protests. This is a reflection the local communities believe we are working on behalf of all stakeholders, promoting the fair distribution and proper use of the government take from the Bretana project," Zuniga continued.

"Though we cannot guarantee Bretana will not eventually be shut as a consequence of their demands, we would expect this would be for a relatively short period of time."

Shares were 4.6% lower on Thursday afternoon in London at 18.60 pence each.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
PetroTal Corp 15.33 GBX 0.52 -
PetroTal Corp 0.25 CAD 0.00 -

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