Business
PetroTal Provides Liquidity Update
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - March 10, 2020) - PetroTal Corp. (TSXV...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Provides Liquidity UpdateContinues to remain nimble even with lower oil pricesCalgary, Alberta and Houston, Texas--(Newsfile Corp. - March 10, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (\"PetroTal\" or the \"Company\"), the Peruvian focused E&P company, notes the following in relation to the global retraction in oil prices, and global market decline. All currency amounts are in United States dollars.Financial ImpactIn response to the sudden reduction in the Brent oil price, PetroTal has completed a sensitivity assessment of funds available from operations (\"netback\") at varying oil price levels. As noted in our February corporate presentation (available on the Company's website at www.petrotal-corp.com), Bretaña's netback at 15,000 barrels of oil per day (\"bopd\") was 55% of the Brent oil price at $65/bbl and decreases to 37% at the Brent oil price of $30/bbl.          Based on 15,000 bopd Brent Oil - $/bbl $65 $60 $55 $50 $45 $40 $35 $30 Netback  - $/bbl $36 $33 $28 $24 $21 $18 $14 $11           Netback Ratio (%) 55% 54% 52% 48% 47% 45% 40% 37%                   Based on 20,000 bopd Brent Oil - $/bbl $65 $60 $55 $50 $45 $40 $35 $30 Netback  - $/bbl $38 $34 $29 $25 $22 $19 $15 $12           Netback Ratio (%) 58% 57% 53% 50% 49% 48% 43% 40%  In some of our contracts, as Brent oil prices drop below $50/bbl, PetroTal is entitled to negotiate lower fees and tariffs to stabilize netbacks. These graduated cost reductions (included in the above table) serve to increase netbacks by approximately $3/bbl at $30 Brent. Each barrel of oil production contributes positively towards funding all administrative costs and the Company's capital investments. PetroTal has the benefit of not having any debt or interest expenses, and no concerns about loan covenants.Since PetroTal maintains significant investment program flexibility, the Company has the ability to be resilient and ensure that it balances cash flow with expenditures. The Company's previously announced $99 million capital investment program is weighted to the last half of the year and will continue to be monitored closely in light of the reduced oil price environment. F...