This announcement does not constitute an offer
of securities for sale or subscription in any jurisdiction
CALGARY and HOUSTON, Sept. 26,
2018 /CNW/ - PetroTal Corp. ("PetroTal" or the
"Company") (TSX-V: TAL), an exploration and production
company focused on oil assets in Peru, is pleased to announce its intention to
seek a secondary quotation of its common shares with their
admission to trading on the London Stock Exchange's AIM market
("AIM"), subject to preparation of the requisite documentation. The
Company expects that the shares will begin trading by the end of
this year.
The Company is seeking admission to AIM, alongside its current
listing on the TSX Venture Exchange, in order to take advantage of
AIM's liquidity, as well as to access a broader range of
institutional investors. The Board believes that this will help
expedite the unlocking the value of PetroTal's Peruvian assets.
PetroTal would be the only exclusively Peru focused independent oil and gas company
quoted in London.
Strand Hanson Limited is acting as the Company's Nominated
Adviser on the proposed admission.
The Company will hold a special meeting of shareholders on
Thursday, October 25, 2018 to amend
the Articles of the Company in preparation for the secondary
quotation. A management information circular and related meeting
materials have been mailed to the Company's registered shareholders
and filed on SEDAR at www.sedar.com.
Key Highlights:
PetroTal is increasing production from the Bretaña oil field on
Block 95, as well as evaluating the Osheki prospect in Block
107.
- Bretaña oil field (Block 95):
-
- One of the largest undeveloped discoveries in Peru
- First oil achieved in June 2018,
ahead of schedule
- Installation of initial Long-Term Testing Facilities to handle
production of 5,000 barrels of oil per day ("bopd") and 5,000
barrels of water per day is expected to be completed on schedule
and under budget by late October, 2018
- Average September 2018 production
is ~900 barrels of oil per day ("bopd") naturally flowing, expected
to increase to over 2,000 bopd by November
2018
- First development well to be spud in early 2019, allowing for
production growth to 5,000 bopd by mid-2019 and to 10,000 bodp in
early 2020.
- Significant proved + probable (2P) reserves of 39.8 million
barrels of oil, independently verified by Netherland Sewell & Associates, Inc.
("NSAI") effective as of December 31,
2017
- Attractive fiscal terms with an initial cash royalty of five
percent, not surpassing eight percent at peak production
- Established routes to market with current production being sold
at the Iquitos Refinery
- Osheki light oil prospect (Block 107):
-
- Recent confirmation that Osheki prospect is estimated to hold
534 million barrels of mean prospective recoverable resources,
estimated by NSAI effective as of June 30,
2018.
- Estimate is based on a recovery factor of 30 percent of the
estimated 1.78 billion barrels of mean prospective original oil in
place ("OOIP")
- Currently in discussions with potential joint venture partners
to drill Osheki
- Further potential material upside from additional leads in
Block 107
Manolo Zuniga, President and
Chief Executive Officer, said:
"We are focused on realizing the value of our material oil
assets in Peru. A secondary
quotation on London's AIM would
hopefully increase liquidity and allow us to broaden the
shareholder register, at a time when we both are rapidly moving
ahead with the development of Block 95 and continuing to assess
potential partners for Block 107.
"We have achieved operational milestones, ahead of schedule
and under budget, including the commencement of production at
Bretaña. We have a team with track records of delivering
results and creating value for shareholders. PetroTal is in a
strong financial position with no debt, and our investment case is
further de-risked by a relatively simple geological story. We
are proud to be aligned with the Peruvian government as we play our
part in helping the country increase production and reduce oil
imports. I am very upbeat about the future as we continue our
journey to become a Peruvian focused E&P of scale, creating
value from our existing assets, and over time expanding the
portfolio in Peru. We look forward to providing further
updates on our progress in due course."
ABOUT PETROTAL
PetroTal is a publicly-traded independent oil and gas
development and production company domiciled in Calgary, Alberta, focused on the development
of oil assets in Peru. The Company's management team has
significant experience in developing oil fields in Northern Peru and is focused on safely and
cost effectively developing and exploiting the Bretaña oil field in
Block 95 and to continue to evaluate the promising Osheki prospect
in Block 107.
This announcement is for information purposes only and is not
intended to and does not constitute, or form part of, any offer or
invitation to purchase, subscribe for or otherwise acquire or
dispose of, or any solicitation to purchase or subscribe for or
otherwise acquire or dispose of, any securities in the capital of
the Company.
PRESENTATION OF OIL AND GAS INFORMATION
Prospective resources are the quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Estimates of prospective resources included in this press
release relating to the Osheki prospect are based upon an
independent assessment completed by NSAI, a qualified independent
reserves evaluator as defined in Canadian National Instrument
51-101 - Standards of Disclosure for Oil and Gas Activities ("NI
51-101"), with an effective date of June 30,
2018, and prepared in accordance with the Canadian Oil and
Gas Evaluation Handbook and the standards established by NI 51-101.
For additional information about the Company's prospective
reserves, see the Company's press release dated September 12, 2018.
This press release contains metrics commonly used in the oil
and natural gas industry, such as operating netbacks (calculated on
a per unit basis as oil revenues less royalties and barging,
pipeline and lifting costs). These terms have been calculated by
management and do not have a standardized meaning and may not be
comparable to similar measures presented by other companies, and
therefore should not be used to make such comparisons. Management
uses these oil and gas metrics for its own performance measurements
and to provide shareholders with measures to compare PetroTal's
operations over time. All oil and gas disclosure contained in this
press release complies with the requirements of NI 51-101.
The term original oil in place (OOIP) is equivalent to total
petroleum initially in place ("TPIIP"). TPIIP, as defined in the
Canadian Oil and Gas Evaluation Handbook, is that quantity of
petroleum that is estimated to exist in naturally occurring
accumulations. It includes that quantity of petroleum that is
estimated, as of a given date, to be contained in known
accumulations, prior to production, plus those estimated quantities
in accumulations yet to be discovered. A portion of the TPIIP is
considered undiscovered and there is no certainty that any portion
of such undiscovered resources will be discovered. If discovered,
there is no certainty that it will be commercially viable to
produce any portion of such undiscovered resources. With respect to
the portion of the TPIIP that is considered discovered resources,
there is no certainty that it will be commercially viable to
produce any portion of such discovered resources. A significant
portion of the estimated volumes of TPIIP will never be
recovered.
FORWARD-LOOKING STATEMENTS: This press release may contain
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 intention to pursue a secondary
listing on the AIM market and hold a special meeting of
shareholders in relation thereto, intention of engaging joint
venture partners to drill the Osheki prospect, expectations
regarding existing and future wells, drilling and production in the
Bretaña oil field and the timing thereof. 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. In
addition, statements relating to expected production, reserves,
resources, recovery, 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 and
resources 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, reservoir characteristics,
recovery factor, exploration upside, prevailing commodity
prices and the actual prices received for PetroTal's products, the
availability and performance of drilling rigs, facilities,
pipelines, other oilfield services and skilled labour, royalty
regimes and exchange rates, 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, the Company's growth strategy, general economic
conditions, availability of required equipment and services and
prevailing commodity prices. 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. 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, 2017 and the
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.
References in this press release to production test rates,
initial test production rates, and other short-term production
rates are useful in confirming the presence of hydrocarbons,
however such rates are not determinative of the rates at which such
wells will commence production and decline thereafter and are not
indicative of long term performance or of ultimate recovery. While
encouraging, readers are cautioned not to place reliance on such
rates in calculating the aggregate production for PetroTal. A
pressure transient analysis or well-test interpretation has not
been carried out in respect of all wells. Accordingly, the Company
cautions that the test results should be considered to be
preliminary.
FOFI DISCLOSURE: This press release contains future-oriented
financial information and financial outlook information
(collectively, "FOFI") about PetroTal's prospective results of
operations and operating netbacks, which are subject to the same
assumptions, risk factors, limitations and qualifications as set
forth in the above paragraphs. FOFI contained in this press release
was made as of the date of this press release and was provided for
the purpose of providing further information about PetroTal's
anticipated future business operations. PetroTal disclaims any
intention or obligation to update or revise any FOFI contained in
this press release, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this press release
should not be used for purposes other than for which it is
disclosed herein. All FOFI contained in this press release complies
with the requirements of Canadian securities legislation, including
NI 51-101.
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.
SOURCE PetroTal Corporation