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.