07/09/2020 | Press release | Distributed by Public on 07/09/2020 21:08
Average Q1 2020 oil production of 9,686 bopd
Calgary, Alberta and Houston, Texas-(Newsfile Corp. - July 9, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ('PetroTal' or the 'Company') is pleased to announce its financial and operating results for the three months ended March 31, 2020 ('Q1 2020').
Selected financial, reserves 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 Q1 2020, which are available on SEDAR at www.sedar.com and the Company's website at www.PetroTal‐Corp.com. Reserve numbers presented herein were derived from an independent reserves report (the 'NSAI Report') prepared by Netherland, Sewell & Associates, Inc. ('NSAI') effective December 31, 2019. All amounts herein are in United States dollars ('US$') unless otherwise stated.
Q1 2020 HIGHLIGHTS
The Company reached several key operational and financial achievements as described below:
Q1 2020 Operational Highlights
Q1 2020 Financial Highlights
March 31, 2020 Subsequent Events
The following table summarizes key financial and operating highlights associated with the Company's performance for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019. Note that the commodity price derivative is a non-cash item. See the Financial Statements and MD&A for further details.
|Quarter ended||Quarter ended||
|Results at a glance||March 31, 2020||December 31, 2019||March 31, 2019|
|Crude oil revenues||41,768||50,482||4,529|
|Net operating income||17,809||28,353||845|
|Commodity price derivative loss (income) (1) (1)||40,420||(213)||-|
|Net income (loss)||(31,452)||18,223||(1,610)|
|Basic and diluted net income (loss) (US$/share)||(0.05)||0.03||0.00|
|Average production (bopd)||9,686||7,767||904|
|Average sales (bopd)||10,313||9,509||923|
|Average Brent oil price (US$/barrel)||50.14||63.26||63.83|
|Average realized price (US$/barrel)||44.51||57.71||54.54|
|Funds flow from operations||15,059||21,709||(728)|
(1) On June 12, 2020, the Company announced that this contingent liability will be paid over a three-year period.
Based on current oil prices, the overall amount has been reduced to approximately $25 million.
|SALES:||Average Production (bopd)||9,686||7,767||904|
|Average sold (bopd)||10,313||9,509||923|
|Average Brent price ($/bbl)||50.14||63.26||63.83|
|Quality price differential (%)||-11.2%||-8.8%||-14.6%|
|NET OPERATING INCOME||$18.98||$17,809||$32.42||$28,353||$10.18||$845|
|Netback as % of Revenue||42.6%||56.2%||18.7%|
|General and administrative expense||$2.12||$1,993||$6.91||$6,048||$19.62||$1,629|
|Derivative loss (income)||$43.07||$40,420||-$0.24||($213)||$0.00||$0|
|Accretion and other expense||$0.24||$229||$0.26||$229||$1.06||$88|
|Deferred income taxes (recovery)||$0.06||$60||$0.05||$45||$0.71||$59|
|Depletion, depreciation & amortization||$6.10||$5,725||$4.30||$3,760||$8.97||$745|
|Impairment and foreign exchange||$0.36||$335||$0.14||$126||-$0.79||($66)|
|NET INCOME (LOSS)||($31,452)||$18,223||($1,610)|
|FUNDS FLOW FROM OPERATIONS||$15,059||$21,709||$(728)|
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
'Despite the challenging macro backdrop, PetroTal achieved a great deal during the first quarter of 2020. The Company successfully drilled the 6H well on time and under the original budget. To date, the well has performed in line with expectations, producing approximately 4,500 bopd for the first 10 days in April 2020.
Post-period end, we chose to take decisive action to preserve the Company's liquidity position and I am pleased with the results we have achieved to date. We remain on track to restart production at Bretaña later this month and I look forward to updating all our stakeholders as we look to resume normal operating conditions in due course.'
PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field.
For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or contact:
Executive Vice President and Chief Financial Officer
T: (713) 609-9101
Manolo Pablo Zuniga- Pflucker
President and Chief Executive Officer
T: (713) 609-9101
Mark Antelme / Jimmy Lea
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright / Rupert Holdsworth Hunt / Harry Baker
T: +44 (0) 7711 627449
FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; the Company's ability to operate in accordance with developing public health efforts to contain COVID-19; the timing of filing the Interim Filings. All statements other than statements of historical fact may be forward‐looking statements. Forward‐ looking statements are often, but not always, identified by the use of words such as 'anticipate', 'believe', 'expect', 'plan', 'estimate', 'potential', 'will', 'should', 'continue', 'may', 'objective' and similar expressions. The forward‐looking statements are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which the forward‐looking statements are based are reasonable, undue reliance should not be placed on the forward‐looking statements because the Company can give no assurance that they will prove to be correct. Since forward‐looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e. g. , operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Company's annual information form and management's discussion and analysis for the year ended December 31, 2019 which are available on SEDAR at www.sedar.com. The forward‐looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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