Business
PetroTal Announces 2019 Year-End Oil Reserves and Operational Update
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - February 18, 2020) - PetroTal Corp. (TS...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces 2019 Year-End Oil Reserves and Operational Update20% increase in 1P Reserves to 21.5 million barrels and 21% increase in 2P Reserves to 47.7 million barrelsCalgary, Alberta and Houston, Texas--(Newsfile Corp. - February 18, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (\"PetroTal\" or the \"Company\"), the Peruvian focused E&P company, is pleased to announce the results of its 2019 year-end reserve evaluation by Netherland, Sewell & Associates, Inc. (\"NSAI\") for the Bretaña oil field, operated 100% by PetroTal, and to provide an update on current activity and production. All currency amounts are in United States dollars (unless otherwise stated), and comparisons refer to December 31, 2018.HIGHLIGHTS:Proved (\"1P\") reserves increased by 20%, to 21.5 million barrels (\"mmbbl\") from 17.9 mmbbl, Proved plus Probable (\"2P\") reserves increased by 21% to 47.7 mmbbl from 39.4 mmbbl and Proved plus Probable and Possible (\"3P\") reserves increased by 8% to 84.8 mmbbl from 78.7 mmbbl;Related to 2019 oil production of 1.5 mmbbl, reserve additions replaced 240% in 1P reserves, 553% in 2P reserves and 407% in 3P reserves; Bretaña's reserve life index for 1P and 2P reserves is now 7.7 years and 17.0 years, respectively;Net Present Value (before tax, discounted at 10%) (NPV-10) is calculated at $434 million ($20.19/bbl) for 1P reserves, $1.1 billion ($23.02/bbl) for 2P reserves and $1.9 billion ($22.11/bbl) for 3P reserves;Using the 2019 year-end Brent oil price strip, NPV-10 is calculated at $280 million for 1P reserves, $722 million for 2P reserves and $1.2 billion for 3P reserves; The successful 2019 development program combined with all future development and abandonment costs represent total finding and development costs of $12.04/bbl for 1P reserves, $5.32/bbl for 2P reserves and $4.06/bbl for 3P reserves;Original oil in place (\"OOIP\") estimates for each category of reserves have also increased, with the 2P estimate increasing from 329 mmbbl to 364 mmbbl;NSAI attributes a corresponding 2P recovery factor of 13.6%, increased from 12% at year-end 2018;On a 2P basis, this represents a recycle ratio of 6.5 times, based on the total $5.32/bbl finding and development cost relative to a netback of $35/bbl (at $65/bbl Brent oil price);Drilling has commenced for the Bretaña 6H well, planned to h...