Calgary, Alberta and Houston,Texas--(Newsfile Corp. - December 27, 2019) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company"), the Peruvian focused E&P company, is pleased to announce an oil sales contract with PETROPERU S.A. ("Petroperu"), a state owned company, for oil production from the Bretaña oil field, operated 100% by PetroTal.
Commissioning of the central production facility is underway, and oil production has surpassed 10,000 barrels of oil per day ("bopd") from the Bretaña oil field in Peru. This oil sales contract enables PetroTal to ship all oil in excess of its existing 1,200 bopd sales agreement with the Iquitos refinery, through the 854 kilometer North Peruvian Oil Pipeline, owned and operated by Petroperu. Petroperu has agreed to purchase the oil at pump station No. 1 located at Saramuro, approximately 460 kilometers from the Bretaña oil field. The Company will barge the oil to Saramuro at an estimated average cost of US$4.25 per barrel. The oil delivered at Saramuro will be sold based on the monthly average reference price of ICE Brent minus US$4.00 per barrel. When the oil is ultimately sold by Petroperu at Bayovar, PetroTal will receive a valuation adjustment based on the actual price achieved by Petroperu, whether higher or lower.
This sales contract will allow PetroTal to receive oil sales revenue earlier, allowing PetroTal to maintain strong liquidity. The oil sales contract allows us to submit monthly invoices, rather than having to wait for the ultimate sale at Bayovar after sufficient oil volumes have been achieved for a tanker to take the oil to its final market. This oil sales contract is initially for one year and can be extended with the agreement of both parties. For Petroperu, the increased oil volumes through the pipeline will enhance economics since Petroperu will earn the previously published pipeline tariffs along with a commercialisation fee.
Manolo Zuniga, President and Chief Executive Officer, commented:
"We're pleased that Petroperu has exhibited such confidence in oil production from the Bretaña oil field as our good quality oil output increases. This will ensure that Petroperu has the ability to manage Peru's expanding oil production and an adequate supply of oil for the Talara refinery expansion when complete".
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 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 and other leads in Block 107. The Company's management team has significant experience in developing and exploring for oil in all of Peru's oil producing basins and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field. More information on the Company can be found at www.PetroTal‐Corp.com.
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)
Callum Stewart / Nicholas Rhodes / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning PetroTal's assessment of future plans and operations and the appointment of new directors of the Company. When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by PetroTal. Although PetroTal believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: PetroTal may not obtain the required approvals from the TSX Venture Exchange and other factors more fully described from time to time in the reports and filings made by PetroTal with securities regulatory authorities. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2018 and management's discussion and analysis for the three and six months ended June 30, 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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