Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 12, 2019) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") is pleased to announce that the Company's board of directors has declared an interim dividend in respect of the common shares in the capital of PetroTal (the "Common Shares") to shareholders of record at the close of business on December 20, 2019 (the "Record Date").
The interim dividend will be CAD$0.0017 (£0.001) cash for each Common Share, subject to applicable withholding taxes for non-Canadian resident shareholders, and will be paid on January 20, 2020. Based on the number of shares currently outstanding, this represents a total dividend payment of approximately CAD$1.14 million (£0.66 million).
As announced at the time of the Company's most recent equity placing on May 31, 2019, the Company intends to pay a total dividend in respect of the half year period from July 1, 2019 to December 31, 2019 equivalent to an annualized yield of 4% (based on the £0.15 per share placing price). The interim dividend of CAD$0.0017 (£0.001) per share declared today represents one-third of the expected total dividend for that period and it remains the Company's intention, subject to the ongoing satisfactory performance of the Company's operations in Peru, to declare the final two-thirds of the total dividend alongside the Company's final results for the year ending December 31, 2019, which are expected to be released in April, 2020.
Common Shares will commence trading on an ex‐dividend basis on December 19, 2019 (as of which date the Common Shares will no longer have the attaching entitlement to this dividend).
Manolo Zuniga, President and Chief Executive Officer stated:
"We're pleased to honor our commitment to declare a dividend for the second half of 2019. To date, operations in Bretaña have exceeded expectations and we're delighted to be in a position to share that success with our dedicated shareholders. Additional development of the oil field will continue over the next few years, and PetroTal expects to maintain this minimum level of dividend obligation. Going forward, we expect to declare an interim dividend representing one third of the annual entitlement in August of each year, based on the first half year results, with the remaining two thirds payable, based on the Company's full year results, declared when annual results are published."
PetroTal's transfer agent, Computershare, will send registered shareholders either CAD$0.0017 or £0.001 cash for each Common Share held as of the Record Date, less any applicable withholding taxes for non-Canadian resident shareholders. Holders of Common Shares who hold their shares in the name of a nominee (i.e. deposited with a securities broker, bank or other institution) will not receive payment and instead will need to contact their nominee for further information as to their entitlement to the dividend.
The dividend is designated by PetroTal to be an "eligible dividend" for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to an eligible dividend paid to Canadian resident individuals.
Notice to all Non-Canadian Resident Shareholders
In 2012, the Canada Revenue Agency ("CRA") changed how the tax withholding rate applied to dividend payments made to non-residents is determined. The CRA now requires a certification of residency from each non-resident shareholder so that the preferred tax treaty rate can be applied where applicable to persons resident in countries which have a tax treaty with Canada. In order to receive the preferred treaty rate, non-Canadian resident shareholders must complete and mail back a completed form NR301. Failure to so will result in Computershare withholding the statutory 25% withholding tax rate on any payments to registered non-Canadian resident shareholders. The form may be downloaded at www.canada.ca/en/revenue-agency/services/forms-publications/forms/nr301.html.
PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL) (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 the Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, six months after acquisition. 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 contact:
Executive Vice President and Chief Financial Officer
T: (713) 609-9101
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 / Eric Allan
T: 44 (0) 207 409 3494
Numis Securities Limited (Joint Broker)
John Prior / Emily Morris
T: +44 (0) 207 260 1000
Stifel Nicolaus Europe Limited (Joint Broker)
Tel: +44 (0) 20 7710 7600
This announcement contains inside information.
FORWARD-LOOKING STATEMENTS: Certain of the statements made and information contained herein, other than statements of historical fact and historical information, is "forward-looking information" within the meaning of applicable Canadian securities laws. Such statements include, but are not limited to, the Company's dividend policy, the payment of the dividend and declaration of future dividends, and timing and amount thereof. Words such as "if", "will be", "may" and "schedule", or variations of these terms or similar terminology or statements that certain actions, events or results "could" occur or be achieved are intended to identify such forward-looking information. Although PetroTal believes that the expectations reflected in the forward-looking information contained herein are reasonable, these statements by their nature involve risks and uncertainties, and are not guarantees of future performance. Forward-looking information is based on a number of assumptions, and subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers should not to place undue reliance on forward-looking statements. PetroTal disclaims any intention or obligation to update or revise any forward‐looking statements or to explain any material difference between subsequent actual events and such forward‐ looking statements, except to the extent required by applicable law.
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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