PetroTal reports robust second-quarter production

11th Jul 2024 11:22

(Sharecast News) - PetroTal reported robust second-quarter production in an update on Thursday, achieving an average production rate of 18,290 barrels of oil per day (bopd) despite a brief river blockade, with June's average production reaching 20,555 bopd.

The AIM-traded firm said two wells, 18H and 19H, were successfully completed in early May and June, respectively.

Well 18H was performing as expected, with initial production rates of 4,621 bopd over seven days and 3,929 bopd over 30 days.

The well cost around $17.3m, and was projected to achieve payback within six months at current oil prices.

Well 19H, the company's 20th oil-producing well, began production on 14 June, and reached a seven-day production rate of 8,511 bopd.

The well was completed below budget at $11.5m, with an expected payback period of less than two months.

PetroTal started drilling well 5WD on 17 June, which would enhance the company's water disposal capacity, facilitating sustained production of over 20,000 bopd.

The cost of the 5WD well would be around $12.5m.

Additionally, the company said it planned to accelerate the drilling of well 20H, starting in late July, with an estimated cost of $15m.

PetroTal reached a production milestone in early July, surpassing 20 million barrels of oil since beginning operations in June 2018.

The company's proved and probable (2P) oil reserves had meanwhile more than tripled to an estimated ultimate recovery of around 120 million barrels of oil.

In regulatory news, PetroTal said it had secured all necessary approvals for the Oleoducto de Crudos Pesados (OCP) pipeline in Ecuador.

The company would soon start a 100,000-barrel pilot program to evaluate the transportation route.

On the social front, PetroTal transferred $12.6m to the Social Trust Fund, marking a significant step since the fund's inception in 2021.

The fund would support various community initiatives, including internet connectivity for 7,000 inhabitants, scholarships for 100 students, the creation of a technical support team, and the installation of solar energy pods in 17 communities.

Financially, PetroTal ended the second quarter with a strong cash position of $96m, comprising $84m in unrestricted cash and $12m in restricted cash.

The company also conducted a share buyback programme, purchasing 1.2 million shares at an average price of 61 cents each, and paid $13.7m in dividends related to first-quarter operations.

Accounts receivable and payable stood at $113m and $69m, respectively, at the end of the quarter.

At 1059 BST, shares in PetroTal Corporation were up 2.13% at 42.9p.

Reporting by Josh White for Sharecast.com.