Shareholders of Petrotal Corp (LON: PTAL) have seen their shares bounce on Monday afternoon, as the firm gave an impressive update to the market.
PetroTal is an oil and gas development and production company. The firm focuses on development of oil assets and oil fields, and has main operations in Canada.
Shares of PetroTal bounced 3.35% to 25p on the announcement. 16/12/19 15:12BST.
In July, the firm provided an update on output and unrest at its Bretaña field in Block 95 in Peru.
BN 95-3D (3D) came online mid June with production at 3,500 bopd, it averaged 2,875 bopd over its first 24 days of production. Full field Bretaña production averaged 3,000 bopd in Q2 and averaged 5,350 bopd since 3D came online.
A few months on, the firm saw their shares rally in November as it gave shareholders an optimistic production guidance.
Based on recent field production experience of production 8,000 barrels of oil per day with a facility having 5,000 bopd nominal capacity, PetroTal expected its central production facilities to be able to handle the order of 15,000 barrels per day, which sent shares soaring over 20%.
Today, the firm said it had completed completed the 5H well, its second horizontal well, at its 100%-owned Bretana oil field in Block 95 in Peru.
he well was completed on time and costs came in 20% under the original budget of $14.5 million, which was a noteworthy accomplishment for shareholders to take.
The initial three-day production rate was 8,250 barrels of oil per day, exceeding management’s expectations. Bretana was able to record production of over 9,000 barrels per day, a record PetroTal said, with only two of the six wells online.
“PetroTal is pleased with the success of the 5H well and proud to play a historical role by drilling Peru’s longest horizontal well to date,” President & Chief Executive Manolo Zuniga said.
He added: “I wish to thank the technical and drilling team for their efforts to ensure safe operations and their dedication directed to the 5H well. The strong well performance emphasises the significant upside of the Bretana oil field and the considerable growth potential the asset possesses. Our interpretation of the reservoir has been confirmed with this well and the increased production will enhance field economics. The ongoing facility enhancements will enable us to effectively manage the increasing oil field production.”
The oil and gas industry has been mixed, and firms have seen their shares volatile amid market turbulence.
Notable updates came from United Oil and Gas who said that they were planning to raise funds to purchase Rockhopper Egypt Ltd from Rockhopper Exploration PLC.
United is a former Tullow Oil team, however FTSE250 listed Tullow saw their shares crash, after the firm saw their chief executive and exploration director quit.
Additionally, Tullow had warned production was likely to be between 89,000 barrels and 93,000 barrels, lower than the 90,000 barrels to 98,000 barrels initially guided, which caused shares to sink in November.