Business
PetroTal Announces Contemplated $100 Million Bond Issue and Operations Update
Funds anticipated to be primarily invested to expand development of the Bretana oil field and ...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces Contemplated $100 Million Bond Issue and Operations UpdateFunds anticipated to be primarily invested to expand development of the Bretana oil field and prepay 100% of Petroperu's restructured debtCalgary, Alberta and Houston, Texas--(Newsfile Corp. - January 12, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (\"PetroTal\" or the \"Company\") is pleased to announce that it has mandated Pareto Securities AS to arrange a series of fixed income investor virtual meetings commencing January 14, 2021.Subject to, inter alia, market conditions, a new USD 100 million senior secured three year bond issue (the \"Bond Issue\") may follow. The proceeds of the potential Bond Issue will be used to settle in full the cumulative oil price difference liability owed to Petroperu (approximately USD 16.6 million - as previously announced); to finance the ongoing development of PetroTal's flagship Bretana oil field in Northern Peru; to provide funds to support the Company's hedging program; and to finance potential synergistic acquisitions.Further details will be provided as and when appropriate. Bretana Oil Field UpdateOn January 7, 2021, the Company announced that, coincident with full commencement of Petroperu's Northern Oil Pipeline (ONP) operations, PetroTal's production was approximately 9,500 barrels of oil per day (''bopd'') and was expected to increase as operations returned to a stabilized level. Since January 7, 2021, oil production has increased to an average of 10,025 bopd, with optimization continuing.Additionally, as PetroTal continues to ensure it has export optionality, the Company has now signed an agreement for a second pilot shipment through Brazil in February 2021, of up to 220,000 barrels of oil. The increased volume of this shipment over the initial pilot export is expected to improve overall economics and lead towards the establishment of regular exports, complementing sales into the ONP and to the Iquitos refinery.Proceeds from the contemplated Bond Issue will allow PetroTal to resume development drilling at Bretana in March 2021. In anticipation of expected higher oil production, the modular processing equipment for expansion of the second phase of Central Processing Facilities (CPF#2) is complete and is currently en route to Bretana.Updated Corporate PresentationThe Company announces that an updated presen...