Business
PetroTal Announces Q1 2021 Operations Update
2021 drilling program underway, Q1 2021 4H workover successfully completed, and Q1 2021 exit p...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces Q1 2021 Operations Update2021 drilling program underway, Q1 2021 4H workover successfully completed, and Q1 2021 exit production on budgetCalgary, Alberta and Houston, Texas--(Newsfile Corp. - April 7, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (\"PetroTal\" or the \"Company\") is pleased to announce the following operational update for Q1 2021. All currency amounts are in United States dollars (unless otherwise stated).Highlights:PetroTal has commenced its 2021 drilling program by spudding the first well (\"7D\") on March 29, 2021, with expected completion the first week of May 2021;Successfully completed the workover of well 4H on time and under budget;Continued the installation of expanded production facilities (\"CPF-2\") that have arrived at the field with start-up dates finalized;Achieved Q1 2021 exit production of 8,275 barrels of oil per day (\"bopd\") with Q1 2021 production averaging approximately 7,300 bopd;Following completion of the 7D well, the team will drill the second water disposal well (\"3WD\") on the western flank of the structure, adding 50,000 barrels per day of water disposal capacity;Following completion of the 3WD well, the team will drill four development horizontal oil wells in H2 2021; Total cash liquidity of approximately $76 million, inclusive of an unrestricted balance of $53 million ($23 million are restricted for acquisitions and commodity price hedging). In addition, future Petroperu true-up payments of approximately $36 million to PetroTal are expected, significantly enhancing the 2021 cash flow profile compared to budget; andPetroTal will hold a general investor conference call on April 7, 2021 at 10:30am CT / 4:30pm UK. Details are outlined below.Q1 2021 Operations UpdateThe first well in the 2021 development program was spud on March 29, 2021. The 7D deviated well is expected to be complete in the next 30 days, reaching a total depth of 2,880 meters and costing $9.5 million to drill, complete, and tie-in. This well is planned to develop the south side of the Bretana structure and execute an operationally straight forward drill. Following the 7D well, the Company will drill a water disposal well (3WD), the second water disposal well drilled by PetroTal, that is expected to be completed and online by mid-June 2021. The Company plans to core the 3WD to gather technical d...