Petrotal Corp. · TSX:TAL
Petrotal — Investor Presentation (May 2024)
39 slides from Petrotal's investor presentation, May 2024
Slide 1: Investor Presentation May 2024 Update
Investor Presentation May 2024 Update
Slide 2: PetroTal Overview
PetroTal Overview Corporate Summary USD Millions Trading Price April 22, 2024 $0.63/share USD Basic Shares (millions) 914 Market Cap $530 Net surplus Q1 2024 $55 Enterprise Value Q1 2024 $475 EV/2024 Adjusted EBITDA(2) 2.4x 2024 Guidance bopd 16,500 – 17,500 Corp. Derivatives 0 mmbbls ONP Derivative
Slide 3: Company Value Proposition
Company Value Proposition Significant development Material reserves, running room production and upside growth & free funds flow yield Robust ESG leadership heavy oil in Peru EBITDA Largest margins Small field footprint (<30 acres) Peruvian oil 6.96 kg/bbl in scope 1 producer emissions in 2022 Zero
Slide 4: Company History
Company History 958 bopd 5,675 bopd 12,200 bopd (greenfield) (37% growth) (19% growth) 2024 PRODUCTION GUIDANCE: 16,500-17,500 bopd (~20% production growth over 2023) 4,131 bopd 8,956 bopd 14,248 bopd (330% growth) (58% growth) (17% growth) INVEST: approximately $150-$160 million of capital in 2024
Slide 5: Bretaña 2023 YE Reserves Summary
Bretaña 2023 YE Reserves Summary Reserves Summary (mmbbl) Netherland Sewell (NSAI) Production Profile (bopd) 40,000 199.6 35,000 168.3 30,000 147.0 99.4 25,000 Optionality to flatten production peak 71.6 106.1 20,000 69.1 84.8 75.8 15,000 51.0 38.3 47.7 10,000 96.7 100.2 77.9 Full 3P reserve life >=
Slide 6: Short-Term Strategy with Long-Term Results
Short-Term Strategy with Long-Term Results Debt-free balance sheet Execution of 2P and 3P Returning free cash Securing additional development plans flow to shareholders sales routes ▪ Drilling 2P and 3P ▪ Implemented a structured and ▪ Additional sales route, ▪ Debt free near top of the development
Slide 7: Return of Capital Overview
Return of Capital Overview Total Dividends Total Buybacks $74 million returned through Mar. 31, 2024 $9.2 million returned through Mar. 31, 2024 Dividends Paid (USD/share) Annualized yield based on $0.63/share USD Share Buyback History Buyback cap estimated using a $0.63/share USD $0.030 5,605,287 E
Slide 8: Development Locations
Development Locations Technical Characteristics ▪ Well defined (6,000 city blocks) ▪ Vivian reservoir – Massive fluvial sands with excellent reservoir quality ▪ Accountable for almost 70% of the oil production in the Marañón Basin in Peru ▪ Strong aquifer support and water control using AICD technol
Slide 9: Active and Potential Sales Routes
Active and Potential Sales Routes Total Potential Sales Capacity = 70,000 bopd 4 PetroTal will have commercialized additional sales routes prior to drilling its first exploration well in Block 95 assuming favorable seismic results 3 2 5 Available In progress 1 To Status Capacity Timeline Expandable
Slide 10: Netback Contribution by Sales Route
Netback Contribution by Sales Route Run Rate Netback by Sales Route at 17,000 bopd ($/bbl) Normalized EBITDA/bbl sensitivity at 17,000 bopd ($/bbl) Netback Brazil Iquitos OCP / Total ONP OCP Yurimaguas Summary $/bbl Yurimaguas (run rate) (run rate) (run rate) $67 (pilots) $62 EBITDA / bbl Sales (bop
Slide 11: Long-Term Strategy
Long-Term Strategy Achieve $2 billion in Achieve Bretaña Materially meet or Return free cash flow Optimize cost market capitalization production plateau exceed ESG targets to shareholders structure and via expansion in Bretaña operating synergies ▪ Source accretive M&A ▪ Realization and ▪ Make conti
Slide 12: Low Cost, Strategic Acquisition Of Block 131
Low Cost, Strategic Acquisition Of Block 131 Location Overview Overview ▪ Acquisition of Cepsa Peru (announced on May 8, 2024) includes 100% working interest in Block 131 which holds the light oil producing Los Angeles Field in the Ucayali Basin (discovered in 2013) ▪ Consideration of $5.0 million b
Slide 13: Block 131 Production History & Reserves Summary
Block 131 Production History & Reserves Summary Historical Production Key Highlights ▪ Low risk, well understood conventional light oil reservoir in the Cushabatay sand ▪ Four-way closure primarily composed of fluvial channels of relatively Oil production (bopd) uniform thickness, good porosity / pe
Slide 14: Block 131 Strategic Rationale
Block 131 Strategic Rationale Production with offtake optionality not subject to dry season weather Crude transportation synergies with Bretaña that unlock increased sales to Iquitos Crude sales synergies with Bretaña that potentially lower overall differentials and increase the Iquitos netback Stro
Slide 15: Block 131 Infrastructure In Place
Block 131 Infrastructure In Place Oil production capacity of 5,500 bopd Water treatment Key highlights • Facilities in excellent condition with no near-term capital needed • Can handle approximately 5,500 bopd and 11,000 bwpd See footnotes for additional details and definitions 15
Slide 16: Block 95 Expansion Risked Spending Profile and Timeline
Block 95 Expansion Risked Spending Profile and Timeline Drilling Schedule Capex Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ($ millions) per well 24 24 24 24 25 25 25 25 26 26 26 26 27 27 27 27 28 28 28 28 29 29 29 29 30 30 30 30 31 31 31 31 Iberia
Slide 17: Profiling Bretaña and Block 95 Expansion
Profiling Bretaña and Block 95 Expansion (100% WI View @ $80/bbl Brent) Production (kbopd) Lead E (128 mmbbl) Zapote (24 mmbbl) 51 52 Summary 5 YR $/bbl 10 YR $/bbl 15 YR $/bbl 30 YR $/bbl Tapiche (48 mmbbl) 49 49 50 Iberia (30 mmbbl) 46 43 Bretaña (2P) 39 39 37 327 35 33 31 Oil produced mmbbl 39 11
Slide 18: Osheki-Kametza Technical Overview (Block 107)
Osheki-Kametza Technical Overview (Block 107) Unrisked prospects Best estimate (mmbbl) Mean (mmbbl) Pg (%) Osheki-Kametza 278.4 534.2 21 - 28 Constitución Sur 31.6 68.5 18 - 21 Unrisked leads Best estimate (mmbbl) Mean (mmbbl) Bajo Pozuzo 259.0 1,016.5 Lead A 20.1 39.0 San Juan 72.9 147.4 Total 662.
Slide 19: Profiling 2P Bretaña and Block 107
(100% WI View Profiling 2P Bretaña and Block 107 @$80/bbl Brent) 32 32 32 33 30 Production kbopd Bretaña (2P) 25 Summary 5 YR $/bbl 10 YR $/bbl 15 YR $/bbl 30 YR $/bbl 24 Block 107 (80 mmbbl) 23 22 17 21 19 176 18 Oil produced mmbbl 45 97 133 17 16 (80 Block 107) 14 16 15 14 Well count 42 56 56 56 6
Slide 20: ESG Leadership
ESG Leadership Carbon Emissions Carbon Footprint • 6.96 kg/bbl scope 1/2 emissions in 2022 (11.4kg in 2021) Oil Sales (mmbbls) 2020 – 2.1 2021 – 3.3 2022 – 4.5 Gross Emissions (CO2eq) 2020 – 22,460 2021 – 37,290 2022 – 30,984 Shared Value Environment Governance Energy Consumption (TJ) 2020 – 274 202
Slide 21: Appendix
Appendix
Slide 22: Senior Management Team
Senior Management Team Manolo Zúñiga, Director, President & Chief Executive Officer ▪ Native Peruvian with >30 years of experience in petroleum engineering ▪ Started career with Occidental Petroleum Corp (“Occidental”) in Bakersfield & Block 192 in Peru ▪ Founder and former CEO of BPZ Energy ▪ Helpe
Slide 23: Board of Directors
Board of Directors Highly-Experienced Governance Mark McComiskey, Non-Executive Director and Chairman Jon Harris, Non-Executive Director ▪ Partner of Avaio capital with a focus on energy and digital infrastructure ▪ CEO of Gulf Keystone Petroleum ▪ Founding Partner of Vanwall Capital and Managing Pa
Slide 24: Operational Track Record
Operational Track Record Max oil rate vs cumulative oil (inception until Mar 31, 2024) Normalized Time 1 Cuml. Oil Well Payout Well (months) (bbls) (# of times) 12,000 1XD 35.9 668,771 >5x 11H 2XD 34.2 969,572 >5x 10H 10,000 3D 34.0 >5x 849,268 9H 15H BN-1 32.9 837,176 >5x Highest daily rate achieve
Slide 25: Type Curve Profile
Type Curve Profile Time Normalized Well Performance 6,000 Approximate NSAI Type Curve (2P) (Horizontal Well Portfolio + 7D) 5,500 Horizontal Well Data 5,000 Production (bopd) 4,500 4,000 3,500 3,000 Production (bopd) 2,500 2,000 6,333 1,500 1,000 4,678 500 3,744 0 1 3 5 7 9 11 13 15 17 19 21 23 25 2
Slide 26: Share Price and Trading Summary
Share Price and Trading Summary Tal and PTAL Total Trading Volume by Month (millions of shares) PetroTal Share Price History (USD/share) 160 $0.70 Millions Shareholder exit AIM TSX OTC 140 120 $0.60 100 Shareholder exit $0.50 80 60 Shareholder exit $0.40 40 20 $0.30 0 $0.20 Major shareholders Shares
Slide 27: Extensive Facility Investments in Place
Extensive Facility Investments in Place Significant Scalable Infrastructure in Place ▪ Investment of >$100 million achieves installed processing capacity of ~24,000 bopd ▪ Full field Environmental Impact Assessment (EIA) approved for continued development ▪ Common well pad minimizes footprint (11 he
Slide 28: Peruvian Operating Landscape
Peruvian Operating Landscape Rule of law Executive Legislature Judiciary • Supreme decree governed contracts carried through regime changes • International arbitration resolution Investor friendly fiscal policy President – Dina Boluarte Congress Courts (2022) (Independent with right weighted • Secon
Slide 29: Peruvian Economy and Key State Owned Entities
Peruvian Economy and Key State Owned Entities BBB- Stable (S&P) Petroperu • Recent downgrade related to Petroperu’s liquidity position • State owned energy entity • Still top decile in Latin America • Energy operations entity in Peru • Owns pipelines, refining, producing fields, distribution and mar
Slide 30: Analyst Coverage and Relative Target Valuation
Analyst Coverage and Relative Target Valuation TAL valuation and analyst target summary (USD/share) $2.75 $1.79 $1.83 $1.29 $1.30 $1.32 $1.19 $0.97 $1.01 $0.88 $0.63 Current 1P 2P 3P Eight Cap Auctus Stifel Peel Hunt Zeus Pareto Canaccord Price AFTER TAX NPV(10) PER SHARE (DEC 31, 2023) Key Highligh
Slide 31: Footnotes
Footnotes Slide 2 1. Market capitalization as of April 22, 2024 using a 1.34 CAD/USD exchange rate Slide 9 2. Cash less debt = Total cash less short- and long-term debt and lease liabilities 1. With CPF-2, Bretaña has 90k bbl of crude storage 3. NSAI Reserves statement effective date December 31, 20
Slide 32: Footnotes, continued
Footnotes, continued Slides 12 - 15 READER ADVISORIES and DISCLAIMERS FORWARD-LOOKING STATEMENTS: This presentation contains certain forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities laws. Forward-looking stateme
Slide 33: Footnotes, continued
Footnotes, continued Slide 24/25 Slide 16-19 1. Normalized time adds all hours of well operations together as if the wells were 1. Production, capex, and cash flow profiles are internal management estimates and producing continuously to eliminate the impact of social and technical downtime have not
Slide 34: Disclaimers
Disclaimers
Slide 35: Disclaimers, continued
Disclaimers, continued OTHER READER ADVISORIES FORWARD-LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events. All statements other than statements of historical fact may be forward-look
Slide 36: Disclaimers, continued
Disclaimers, continued Oil and Gas Advisories Crude Oil. All references to “oil” or “crude oil” production, revenue or sales mean “heavy crude oil” as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Brent refers to Intercontinental Exchange “
Slide 37: Disclaimers, continued
Disclaimers, continued Initial Production Rates. Any references in this document to test rates, flow rates, initial and/or final raw test or production rates, early production, test volumes and/or "flush" production rates are useful in confirming the presence of hydrocarbons, however, such rates are
Slide 38: Disclaimers, continued
Disclaimers, continued Non-GAAP Financial Measures, Oil and Gas Abbreviations Metrics and Other Key Performance Indicators Bbl Barrel This presentation contains certain financial measures, as described below, which do not have standardized meanings prescribed by generally accepted accounting princip
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