Business
PetroTal Announces a 2022 Capital Budget of US $120 million
Targeting a 100% growth rate in average oil production to between 17,500 and 19,500 bopd Fr...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces a 2022 Capital Budget of US $120 millionTargeting a 100% growth rate in average oil production to between 17,500 and 19,500 bopdFree cash flow pre debt service of $230 millionCalgary, Alberta and Houston, Texas--(Newsfile Corp. - February 22, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) (\"PetroTal\" or the \"Company\") is pleased to announce a fully funded 2022 capital program of $120 million that is expected to generate material free cash flow, allowing for an expected resumption of a dividend to shareholders by Q4 2022. All amounts are quoted in US dollars.2022 Key HighlightsInvest $75 million in drilling and completing four horizontal development wells in 2022. Inclusive of well 10H, which commenced production on January 31, 2022, a total of five new wells will commence production in 2022;Target a 2022 average production range between 17,500 bopd and 19,500 barrels of oil per day (\"bopd\") with an estimated exit December 2022 production rate of approximately 21,500 bopd;Generate an adjusted EBITDA1 range of $340 to $365 million, assuming a 2022 average Brent price of $88/bbl and a $37 million net derivative true-up payment from oil arriving and being commercialized at Bayovar through the Northern Peruvian Pipeline (\"ONP\");Execute a facilities and infrastructure expansion program of approximately $43 million which includes a new diluent tank, additional separators, a power plant expansion, additional injection facilities and key process optimization projects;Generate free cash flow (before debt service)1 of between $220 and $245 million in 2022;Repay $20 million of the 2021 $100 million bond issue in H1 2022;Redeem the balance of the bonds in Q3 2022, should cash and working capital levels permit;Assuming the entire bond is retired, PetroTal intends to reinstate a stable and rewarding return of capital program as early as Q4 2022; and,Allocate approximately $15 million in community social trust payments and direct community investment projects in 2022.(1) See \"Non-GAAP Financial Measures\"Drilling and Completion BudgetPetroTal will invest approximately $75 million to drill four separate producing development wells in 2022, and complete well 10H which commenced drilling in late 2021 and started production on January 31, 2022. The four new drills in the remainder of 2022 are 11H, 12H, and...