5H well update and guidance increased from PetroTal this morning where all seems to be going very much according to plan. The 5H well on the Bretaña field in Peru is progressing to budget and timeline with 700m of the planned 870m horizontal section drilled. Completion etc is expected to include tie-in and initial production tests by c. 15th December.
Much better news is that the company expects commissioning of CPF-1 in the week of 22nd December increasing nominal to 10,000 bopd. However, based on recent experience management expects that CPF-1 will be able to handle in the order of 15,000 bopd. Given that the 4H well has produced 200,000 barrels of oil in just 35 days the year end guidance has been upped from 10,000 bopd to 11-13,000 bopd. 2020 target production must also go up in due course…
This is exceptional news from PTAL, exceeding already high targets is good and with the 5H well looking good the short and medium term outlook is more than promising. I remain full of confidence on PTAL and am now properly confident in my L/T target of 80p per share.