Petrotal Corp (LON:PTAL) have reported a rise in reserves at the end of 2019, in an update on Tuesday afternoon.
The firm also told shareholders that it had started to drill the Bretana 6H oil well in Peru.
Looking at the firms oil reserves, Petrotal said that they saw a rise of 20% at the end of 2019 to 21.5 million barrels of oil compared to the 17.9 million figure one year ago.
Proved plus probable reserves also surged 21% which totaled 47.7 million barrels of oil compared to 39.4 million barrels of oil.
Net present value, before tax, but with a 10% discount, was $434 million from proved reserves, showing a rise from $151 million at the end of 2018. For proved plus probable reserves, it more than doubled to $1.10billion from USD536 million.
Manolo Zuninga, President and Chief Executive Officer, commented:
“Following the Company’s successful drilling campaign in 2019, we are very pleased to see a meaningful upgrade of reserves in the 1P and 2P categories. PetroTal is glad to see that NSAI’s 2P OOIP estimate now approximates our internal estimate. We are confident that future production data will substantiate the higher recovery factors, and in the end, all of the above serves to create value for our stakeholders.
We look forward to achieving further growth in 2020, with new oil wells and increases in recovery factor, and I would like to sincerely thank our team, as well as our shareholders for their ongoing support of PetroTal.”
Petrotal invest into Peru
A few weeks back, Petrotal told shareholders that they are looking to expand their operations and production in Peru.
The firm said that they will set aside a budget of $99 million for work across 2020, in order to expand their operations and tap into new resources.
The firm alluded to their new capital program, saying that it will allow them to be a “free cash flowing company”.
Petrotal hopes that this new injection of funds will allow the firm to achieve its production target of 20,000 barrels of oil per day from the Bretana oil field based in Peru by the end of 2020.
The firm outlined its target production over 2020 of 13,500 barrels per day which would be a significant rise from the 2019 figure. Notably, fourth quarter average production was 7,757 per day and the new targets will certainly impress shareholders.
Petrotal are in a very sound position right now, and the fact that the firm is looking to expand its operations should yield in results. Therefore shareholders and the firm should remain confident for what the future holds.
Shares in Petrotal trade at 25p (+2.00%). 18/2/20 14:26BST.
