PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL) is pleased to announce that it has successfully increased oil production from theBretaña Norte discovery well (the “Discovery Well” or the “Well”) at the Bretaña field in Block 95, Peru. The Company is also pleased to provide a further update on operations at Bretaña as well as selected financial information as of September 30, 2018. All figures referred to in this press release are denominated in U.S. dollars.
The Company initially provided guidance that the Discovery Well, which had been tested but not put on production, could commence production in 10 to 12 months from PetroTal taking over operational control of the field in late December 2017. The Company subsequently announced that, on June 1, 2018, the well was placed on production through long-term testing, allowing for the start of the well test under natural flow and the commissioning of the newly installed oil production facilities, five months earlier than anticipated. As previously announced, the Company restricted the well flow rates to avoid water production until the required water injection facilities were installed and commissioned. The first phase of water handling equipment and reinjection pumps were installed on schedule, commissioned and currently functioning to allow the well to produce 2,000 BOPD.
Manolo Zuniga, President and Chief Executive Officer of PetroTal, stated:
“The Discovery Well is producing over 2,000 barrels of oil per day. Commissioning of the water re-injection facilities was seamless and now we are engineering the next phase that will be installed in the fourth quarter of 2019, allowing us to accelerate the production ramp up.”
“Last week the team celebrated a significant milestone as the Discovery Well surpassed 100,000 barrels of crude oil production, much sooner than expected. Additionally, we sent a crude oil sample to Bureau Veritas for evaluation and we are pleased with the resulting lighter crude quality and lower viscosity. This is important for two reasons: first it should allow PetroTal to improve netbacks per barrel by using less diluent than budgeted; and secondly we will now have more reliable data when updating our reserves with our third party reserve engineers. We are currently mobilizing a rig to drill Bretaña's second oil well, expected to spud in February and be placed on production in late March 2019.”