• 23% increase in production Quarter over Quarter, to 18,518 bopd
• Unrestricted cash liquidity of $63 million at March 31, 2024

PetroTal, a company focused on development of oil and gas assets in Peru, has announced Q1 2024 operational, financial and corporate updates. 

Q1 2024 Production

PetroTal achieved average production of 18,518 barrels of oil per day ('bopd') in Q1 2024, in line with guidance. This represents an increase of approx. 23% and 54% from Q4 2023 and Q1 2023, respectively. Production during the past 30 days has averaged approx. 20,500 bopd.

Operations 

During Q1 2024, following favorable river levels, the Company delivered its planned sales through the Brazil and Iquitos routes. PetroTal's recently drilled 17H well commenced production on March 1, 2024, and has produced at a rate of approximately 4,000 bopd during its first 30 days online. Since the electro submersible pump was activated two weeks ago, the well has delivered a rate of approximately 4,500 bopd, in line with the Company's expectations.

Currently, PetroTal is continuing with its 2024 development program, and is drilling well 18H, which is expected to commence production in May 2024. 

Erosion Control Update

The Company is progressing its preventive erosion control program aimed at protecting the Bretana oilfield and nearby community. PetroTal expects to commence project construction in mid to late Q3 2024; while permitting is ongoing, detailed engineering is being finalized, and long lead items are being procured.

Cash and Liquidity Update

PetroTal exited Q1 2024 in a strong position with approximately $63 million of unrestricted cash and $22 million of restricted cash for a total of $85 million at March 31, 2024.  Restricted cash includes amounts reserved for the social trust funds to be deposited at a later date. Cash liquidity decreased from year end 2023 levels as a result of increased capital expenditures from drilling program commencement in Q1 2024, March 15, 2024 dividend distribution and revenue payments received in early April. During Q1 2024, the Company purchased 4.7 million shares at an average price of US$0.58/share pursuant to the share buyback program, and paid dividends of $18.4 million (US$0.02/share) on March 15, 2024, related to Q4 2023 operations. At the end of Q1 2024, accounts receivable and accounts payable of approximately $111.7 million and $73.6 million (due within 50 days) respectively, were outstanding. 

Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"The Company achieved its strongest annual start to a year in PetroTal's history generating quarterly average production of over 18,500 bopd. Q1 2024 liquidity was as expected with the Company receiving an average oil price above its 2024 guidance of $77/bbl Brent, bolstering Q1 2024 financial and operational metrics. 

The two recently completed horizontal wells bring our well count to 18 oil producers, setting the stage for record first half and annual production. This will allow us to continue returning capital to our shareholders while growing the Company."

KeyFacts Energy: PetroTal Peru country profile