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PetroTal Announces Completion of US$18 million Equity Placing and Appointment of Broker
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - June 18, 2020) -  PetroTal Corp. (...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces Completion of US$18 million Equity Placing and Appointment of BrokerFinancial and Operations UpdateCalgary, Alberta and Houston, Texas--(Newsfile Corp. - June 18, 2020) -  PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (\"PetroTal\" or the \"Company\") is pleased to announce that its £14.1 million placing, as announced on June 12, 2020 (\"Placing\"), has now been completed and trading on AIM in the 141,203,891 new Common Shares, issued pursuant to the Placing (\"Placing Shares\") will commence this morning. All monetary amounts in this release are in United States dollars, unless otherwise indicated. Financial and Operational UpdateFurther to the announcement of June 12, 2020 (the \"Announcement\") concerning the three year arrangement with PETROPERU S.A. (\"Petroperu\") the Company provides a further update on the current financial and operational status of the Company.Contingent liabilityPetroperu and the Company have agreed to structure the contingent liability due to Petroperu under the Bretana field oil sales contract (\"Oil Sales Contract\") and oil swap contracts with Petroperu (together, the \"Contracts\") into a liability to Petroperu to be paid by PetroTal over a three year period.At May 31, 2020, approximately 2.1 million barrels (\"mmbbls\") of oil produced by PetroTal and sold to PetroPeru under the Contracts were either in the pipeline or storage tanks. The amount of this contingent liability to Petroperu will be definitively determined when the security arrangements for PetroTal's obligations are finalized, expected to be within the next 30 days. Based on current Brent oil prices, the liability is expected to be approximately $26 million, as determined by the difference between the current Brent oil price and the previously booked sales prices for the 2.1 mmbbls that PetroTal has sold to Petroperu up to May 31, 2020. PetroTal will be required to make equal monthly payments, for 36 months, to Petroperu based on the amount of the liability so determined.The above-mentioned liability could be adjusted as PetroTal benefits from the higher forecast oil prices in the second half of 2020 and into 2021, when the underlying barrels are physically sold by Petroperu. The eventual sale by Petroperu of PetroTal's oil at currently forecasted Brent prices would see the liability drop by $7 million to approxi...