Business
PetroTal announces fully funded 2020 Capital Budget of US$99 million
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - January 21, 2020) - PetroTal Corp. (TSX...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal announces fully funded 2020 Capital Budget of US$99 millionTripling Average Oil Production in 2020 to 13,500 bopd, targeting to exit at 20,000 bopdCalgary, Alberta and Houston, Texas--(Newsfile Corp. - January 21, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (\"PetroTal\" or the \"Company\"), the Peruvian focused E&P company, is pleased to announce its 2020 capital program of US$99 million, expected to be fully funded with funds generated from operations and existing cash resources. This capital program will allow PetroTal to become a free cash-flowing company and reach 20,000 barrels of oil per day (\"bopd\") from the Bretaña oil field, operated 100% by PetroTal, before year-end 2020. All amounts are quoted in US dollars.HIGHLIGHTS:- Drill four horizontal oil production wells and a second water disposal well.- Accelerate commissioning of the second phase of central processing facilities (\"CPF-2\") to late August.- Triple last year's average production to 13,500 bopd.- Target a 2020 exit rate of 20,000 bopd.2020 CAPITAL BUDGETBased on the successful results of the most recent horizontal wells (5H and 4H), PetroTal will drill four new horizontal oil production wells in 2020 and a second water disposal well. The new horizontal wells will have an average cost of $13 million per well, and will include longer lateral sections (more than 1,000 meters) in addition to being completed with automatic inflow control devices (\"AICD\"). To accommodate associated water production, another water disposal well will be drilled in the western flank of the field at a cost of $9 million, inclusive of a coring program to further refine Bretana's oil-in-place estimates. Based on the Company's operating experience of optimizing oil production rates in excess of nameplate facility capacities, CPF-2 is now designed for a nominal processing capacity of 15,000 bopd. This will enable total field facility capacity to handle approximately 24,000 bopd. It will also reduce the CPF-2 estimated investment to $22 million, leading to a saving of approximately $5.5 million from the original estimate. Enhancements to the loading dock to handle larger oil volumes and optimal integration of the CPF-1 and CPF-2, will require $9 million. Fast tracking CPF-2 to commence commissioning by late August will allow us to achieve our average oil production...