Business
PetroTal Announces Strategic Acquisition of Block 131 in Peru
Addition of 900 bopd of production effective January 1, 2024 Recoverable reserve estimates up to ...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces Strategic Acquisition of Block 131 in PeruAddition of 900 bopd of production effective January 1, 2024Recoverable reserve estimates up to 4.9 million bbls Significant upside potential from deeper reservoirsCalgary, Alberta and Houston, Texas--(Newsfile Corp. - May 8, 2024) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) (\"PetroTal\" or the \"Company\") is pleased to announce the execution of a definitive agreement (the \"Acquisition Agreement\") to acquire a 100% working interest in Peru's Block 131, including the producing Los Angeles field, through the acquisition of CEPSA Peruana, S.A.C. (\"CEPSA Peru\"), which represents the entire Peruvian business unit of Compania Española de Petroleos S.A.U. (\"CEPSA\"), for a purchase price of approximately $5.0 million in cash, subject to adjustment as set forth in the Acquisition Agreement (the \"Acquisition\").Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:\"This is PetroTal's first acquisition since entering Peru in late 2017. This transaction marks an important step forward in delivering on our ongoing growth vision. The assets being acquired are synergistic, highly accretive to the Company's current operations and we have immediate plans for development once the transaction is complete. All production from the assets is directed to the Iquitos refinery.Completion of this acquisition will add approximately 900 bopd to our current 18,500 bopd of Bretana production, with the potential for further upside in the near to medium term. Furthermore, our operational team is assessing the potential upside in the deeper zones of the Los Angeles field, that were previously penetrated but were not tested. Finally, the location of Block 131 is of strategic importance, as it is connected by a 130km highway to the Company's Block 107 prospect. We look forward to announcing further updates on this acquisition process in due course.\"The assets to be acquired, pursuant to the Acquisition, (the \"Assets\") are currently producing approximately 900 barrels of oil per day (\"bopd\") from four wells previously drilled into the Cretaceous aged Cushabatay sand at the Los Angeles field. With strong aquifer support, these wells are producing with a low base decline profile, high recovery factor, and at a 40-45º API oil quality. The Company'...