PetroTal Corp

A quarterly update from PetroTal this morning which confirms almost all the news that I had in my recent report. The 3D well has averaged 2,875 b/d in the first 24 days of production bringing full field Bretana production to an average of 5,350 b/d since it came onstream which is ahead of analysts expectations. Oil is being stored at Saramuro, Peru in order to ship the first 50,000 barrels through the ONP pipeline with subsequent batches being of 100,000 barrels.

As expected the 2WD well has been spudded which will be the primary water disposal well after which the company plans to convert the existing water disposal well into an oil producer. The plans subsequently are to complete the next phase of production facilities by the end of this year and along with the next new well, the BN 95-4H well will enable production of up to 10,000 b/d.

The company confirms that there has been social unrest locally but they support the local communities and so far field production has not been affected but some storage capacity has been restricted.

PetroTal is in a strong position with growing production and, following the recent raise, a very strong financial position with no debt. Further out there is the exciting prospect of the Osheki prospect in Block 107 which should be drilled next year, there are a number of interested parties in the data room at present. Accordingly the company exhibits excellent opportunities for investors at this interesting time in its development.

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4 comments on “PetroTal
  1. Adrian Calder says:

    Hi Malcy

    You mentioned the possibility of a 4% dividend which makes this an attractive long term prospect, is that still on the cards?

    Many thanks for the great information you provide


    • Malcy says:

      Hi Adrian
      I did and that was after an interview I did with Greg Smith, CFO. it is their plan to pay a dividend from the substantial cash flow that they hope to generate. It is interesting to see a number of companies are now considering the divvi question, historically unusual in E&P stocks although some want to get their prices up by distributing from the ‘p’ side of it such as Genel, Gulf Keystone and Wentworth.
      Happy that you like the info!
      Kind regards

  2. Peter Robson says:

    Have you an overall current view of performance of the bucket list year to date as a number of companies seem to have underperformed year to date (Savannah, Sound, SDX, Amerisur, President)? Do your sense a general lack of market interest/awareness in these minors as progress with some at least seems to be still on course.

    • Malcy says:

      Hi Peter
      Yup, I look at the bucket list in February and August so I am in the process of thinking at the moment as to my excuses for some poor performances and companies that may leave or be included. Watch this space. You are right though, there is a distinct lack of investing interest in some stocks that look incredibly cheap and are being shunned for no reason.
      Kind regards

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