PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ('PetroTal' or the 'Company') is pleased to report its operating and financial results for the three and six months ended June 30, 2023 ('Q2').
Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements and management's discussion and analysis ('MD&A') for the three and six months ended June 30, 2023, 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 unless otherwise stated.
Key Selected Highlights
Achieved record average quarterly sales of 18,483 barrels ('bbls') of oil per day ('bopd'), up 46% from the first quarter ('Q1') 2023; Produced a record 19,031 bopd in the quarter, up 56% from Q1 2023. During the quarter the Company posted 60 days with production over 20,000 bopd; Exited the quarter in a strong cash position with $92.6 million in total cash ($17.3 million restricted), up 29% from end of Q1 2023; As a result of excellent Q2 2023 performance, the Company will declare and pay in Q3 2023, a cash dividend of US$0.025 per common share, which includes the recurring US$0.015 per common share amount, plus an amount for a minimum liquidity sweep of US$0.01 per common share; Exported oil sales through Brazil averaged 513,000 bbls per month. In April 2023 the Company had exported oil sales of approximately 590,000 barrels, that combined with Iquitos refinery deliveries represented total realized oil sales of 630,462 bbls for the month; Commenced drilling well 15H on April 11, 2023, with first oil production in early June 2023, ahead of schedule. The well produced at an average of 7,920 bopd for the last 19 days in June 2023 and has averaged 7,140 bopd for the 30 day period from June 12, 2023 to July 11, 2023, prior to the start of the dry season; Generated significant EBITDA and Free Funds Flow of $70.0 million ($41.63/bbl) and $37.7 million ($22.41/bbl) respectively, compared to $47.9 million ($42.22/bbl) and $7.9 million ($6.96/bbl) in Q1 2023; Achieved Net Income in the quarter of $46.6 million (US$0.05/share) compared to $17.0 million (US$0.02) in Q1 2023 and, During the quarter, the Company paid a dividend of US$0.015/share and repurchased 582,708 shares representing a total of $14.7 million of capital returned to shareholders (3.4% of June 30, 2023 market capitalization).
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented: 'PetroTal delivered its strongest quarter to date in Q2 2023. Underpinned by unconstrained Brazilian export sales, the Company was able to produce over 20,000 bopd for 60 days which allowed the Company to achieve records in almost all major cash flow metrics including generating over $70 million of EBITDA. In addition, our Q2 2023 operating and direct transportation cost was $5.80/bbl versus $7.70/bbl in Q1 2023, showing the benefit of larger volumes on fixed unit costs, and demonstrating how hard the team has worked to keep field costs in check, despite an inflationary environment.
The Board and Management are pleased with the additions of Mr. Jose Contreras (Senior VP Operations) and Mr. Felipe Arbelaez Hoyos (independent non-executive director). These individuals are fitting in extremely well and adding significant value to the Company.
Looking ahead to Q3 2023, the Amazon River water level is currently low near Iquitos and is consequently forecast to be low on the Brazilian side near the end of Q3 2023, leading to a lighter barge fill requirement projected for most of the quarter. As a result, the Company is reiterating its full year oil production guidance of 14,000 - 15,000 bopd. This showcases the importance of securing other oil export routes and promoting the full and consistent operation of the ONP pipeline, both of which the Company are committed to advancing.'
ABOUT PETROTAL
PetroTal is a publicly traded, tri-quoted (TSX: TAL) (AIM: PTAL) and (OTCQX: PTALF) 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 Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2022, PetroTal became the largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
Contact:
Tel: (713) 609-9101
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, oil production levels and guidance, including the ramp up and resumption of shut-in production. 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. Without limitation, this press release contains forward-looking statements pertaining to: PetroTal's drilling, completions, workovers and other activities; the Company's expectation that workovers of Bretana oil wells will provide strong economics; anticipated future production and revenue; drilling plans including the timing of drilling, commissioning, and startup (including in respect of well 16H, well 17H and the L2 West Platform); expectations surrounding disrupted barge logistics and the consequences in respect thereof, including in relation to the Company's H2 2023 production guidance; forecasted conditions for the remainder of 2023 and consequences thereof including the forecast that the Amazon River's elevation will be low on the Brazilian side near the end of the third quarter of 2023 leading to lighter barge fill requirement projections and lessening PetroTal's H2 2023 production levels; expectation that construction of the L2 West Platform will be completed in September 2023 and corresponding effect on the timing of well 16H drilling and development; expectations relating to the ONP reopening including in respect of exportation volumes; expectations surrounding oil production rates throughout the remainder of 2023 including that it will average approximately 13,000 bopd in August 2023; plans to commence drilling well 17H in December 2023 and anticipated costs in respect of the same; intentions with respect to return of capital, including quarterly eligible dividend payments equal to the sum of US$0.015 per share per quarter (and incremental amounts from available cash, consistent with maintaining the minimum liquidity level) and share buybacks of approximately $3 million per quarter; the Company's Q2 2023 declaration of cash dividends in respect of Q2 2023 operations and timing thereof. In addition, statements relating to expected production, reserves, recovery, replacement, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, the ability of government groups to effectively achieve objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, including pursuant to hedging arrangements, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the impact of inflation on costs, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, future river water levels, the Company's growth strategy, general economic conditions and availability of required equipment and services. 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 volatility, price differentials and the actual prices received for products, 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; changes in the financial landscape both domestically and abroad, including volatility in the stock market and financial system and wars (including Russia's war in Ukraine). Please refer to the risk factors identified in the Company's most recent AIF and MD&A 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.
PETROTAL CORP. 
