PetroTal announces financial and operating results for the third quarter of 2021

PetroTal announces financial and operating results for the third quarter of 2021

Selected financial and operational information is outlined below and should be read in conjunction with the Company’s unaudited consolidated financial statements (“Financial Statements”), and management’s discussion and analysis (“MD&A”) for Q3 2021, which are available on SEDAR at www.sedar.com and on the Company’s website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars (“USD”) unless otherwise stated.

Calgary, Alberta and Houston, Texas–(Newsfile Corp. – November 18, 2021) – PetroTal Corp. (“PetroTal” or the “Company”) (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) is pleased to announce its financial and operating results for the nine and three months (“Q3”) ended September 30, 2021.

Highlights

  • Achieved Q3 2021 production of 9,508 barrels of oil per day (“bopd”), within 2% of Q3 2021 guidance and 8% above Q2 2021 production of 8,839 bopd, under constrained production levels;

  • Key Highlights:

Attained payback on the recently drilled well (“8H”) in approximately 40 days from completion;

Generated record daily oil production of 16,140 barrels on September 24, 2021, demonstrating PetroTal’s ability to handle increased fluid levels, in advance of CPF-2 final commissioning;

Commenced drilling well 9H on September 23, 2021, PetroTal’s longest reach horizontal well to date. The well is estimated to cost approximately $15.5 million with first production estimated in early December 2021;

Q4 2021 production guidance is now revised to approximately 12,500 bopd due to a drilling delay for 9H that required a sidetrack resulting from recalibration and optimization of the new synthetic mud system;

Current average production is approximately 11,775 bopd, over the five days ending November 16, 2021; Updated 2021 EBITDA(1) guidance is between $105 – $110 million for 2021, up materially from the original 2021 $90 million budget and includes deferred 9H production into 2022, along with timing delays in the realization of the positive true-up revenue from the Petroperu operated North Peruvian Pipeline (“ONP”) sales at the Bayovar Port;

Achieved continued net income for the sixth consecutive quarter, $15.0 million in Q3 2021, approximately 32% above Q2 2021 net income of $11.4 million, as a result of higher oil production, higher oil prices and derivative gains; The Company has outlined its intended capital allocation strategy for the next five years and is prioritizing continued field development and debt repayment followed by dividends and or share buybacks thereafter; and,

PetroTal continues to play a key role as liaison between the communities and the Peruvian government towards a revised social profit contract that, upon ratification, is expected to lead to overall community support. (1) For a description of EBITDA, see Reader Advisories – Non-GAAP Measures below.

The Company will be hosting a conference call on November 18, 2021 at 9:00am Houston time. The link for the live webcast is below: https://webcasting.brrmedia.co.uk/broadcast/6182aaa429c8b82a5a020583

Q3 2021 Webcast conference call Story continues