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PetroTal Announces Oil Sales and Risk Management Update
Completion of Second Oil Export through Brazilian Terminal and Hedging Arrangements Calgary...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces Oil Sales and Risk Management UpdateCompletion of Second Oil Export through Brazilian Terminal and Hedging ArrangementsCalgary, Alberta and Houston, Texas--(Newsfile Corp. - March 31, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (\"PetroTal\" or the \"Company\") is pleased to announce the second export of Bretana crude oil into the Atlantic region through Brazil and the execution of crude oil price derivative contracts. All currency amounts are in United States dollars (unless otherwise stated). Highlights:PetroTal has completed the initial implementation of its oil price hedging program for 2021. Approximately 590,000 barrels have been hedged, (representing approximately 16% of forecast oil production covering April 1, 2021 to December 31, 2021), in a Put structure with a $60/bbl strike;The Company completed the second Bretana oil export through Brazil, selling 225,000 barrels of oil at $61/bbl less a quality differential and commercial fees, similar to the first Brazilian export completed in December 2020; and,Physical sales from the 1.8 million barrels of oil in the Northern Oil Pipeline (\"ONP\") have commenced, with 360,000 barrels to be sold by Petroperu in April for $62/bbl less a $2.06/bbl quality differential, further reinforcing the strong demand for Bretana oil. This will result in PetroTal receiving an incremental true-up payment of approximately $20/bbl over the revenue booked from the original sale, including differential adjustments. Executed Corporate Hedging ContractIn order to support the 2021 capital development program and mitigate Brent oil price downside risk prior to oil delivery, PetroTal has executed a 590,252 barrel Put option with a strike price of $60/bbl, for the period April 1, 2021 to December 31, 2021. The Company hedged these volumes based on the 2021 budget's monthly oil production profile and will look to layer on additional H2 2021 and H1 2022 hedges as production levels grow following commencement of drilling activity.Second Oil Export Sale Through BrazilThe Company has completed a second oil export through Brazil of 225,000 barrels of oil, sold FOB Bretana. The oil was loaded into a series of barges at Bretana, destined for transport to a terminal near Manaus, Brazil. The sales invoice is based on the Brent oil price forecast for April 2021 of $61/bbl, and PetroTal has r...