Petrotal Corp. · TSX:TAL
Petrotal — Investor Presentation (February 2020)
25 slides from Petrotal's investor presentation, Feb 26, 2020
Slide 1: Investor Presentation: Oil-Focused, Balanced Portfolio Pure Play
Investor Presentation December 2019 Oil-Focused, Balanced Portfolio Pure Play Delivering both steady production growth and high impact exploration February 2020 0
Slide 2: PetroTal Highlights
PetroTal Highlights A full-cycle, sustainable E&P enhanced by an accretive, synergistic acquisition Full-Cycle, High-Impact E&P Company in Peru Block 192 ■ Peruvian E&P, benefiting from stable, pro-business fiscal regime Block 8 ■ Second largest crude oil producer in Peru, developing towards plateau
Slide 3: ESG
ESG Empowering local communities and promoting sustainable development for unlocking the value of our assets ENVIRONMENTAL SOCIAL GOVERNANCE Breteña pad (7.9ha) – single well pad Projects to encourage and mentor 9 full time CSR employees, 4 full and no encroachment on primary sustainable local
Slide 4: Peru – Stable, Pro-Business and Tax-Friendly
Peru – Stable, Pro-Business and Tax-Friendly ■ Stable & Growing Pro-Business Country Talara Refinery: Key Market for Bretaña Oil – Peru is one of the fastest growing economies in Latin America. Since 2000, it achieved an impressive accumulated growth rate of 147.3% GDP1 – Democratic, investment grad
Slide 5: Bretaña Field
Investor Presentation December 2019 Bretaña Oil-Focused, Field Balanced Portfolio Pure Play Delivering both steady production growth and high impact exploration 4
Slide 6: Bretaña Field
Bretaña Field Profitable oil field with high netbacks and significant upside potential Asset Overview 3P Plateau Above 10,000 bbl/d Lasting 9 Years ■ 100% owned Bretaña Field, located in Block 95, in 100 the Marañón Basin, north east Peru ■ On trend with the prolific Marañón Basin, across 10 Peru, E
Slide 7: Bretaña's Increasing OOIP and Rec. Factor Estimates
Bretaña’s Increasing OOIP and Rec. Factor Estimates Though Management always guides to the 2P case, the 2020 drilling campaign will help define the true OOIP ■ In general, the new wells came in with 1P: 235 mmbbl2 2P: 364 mmbbl2 3P: 579 mmbbl2 reservoir thickness and quality at or in excess of NSAI’
Slide 8: Bretaña Wells Demonstrate Cross-Field Consistency
Bretaña Wells Demonstrate Cross-Field Consistency NW BN-3D PTAL_BRETAÑA_NORTE_95-2-2-3D 2546.6 [SSTVD] 2844.3 400 m BN-2XD PTAL_BRETAÑA_NORTE_95-2-2-2XD 2546.8 [SSTVD] 2739.1 717 m 2546.8 BN-1 BRETAÑA_NORTE_95-2-2-1 [SSTVD] 2661.3 785 m BN-1XD BRETAÑA_NORTE_95-2-1XD 2546.8 [SSTVD] 2828.7 6437 m B SU
Slide 9: Bretaña Field: Development in Phases
Bretaña Field: Development in Phases Clear path to production increases through proved development plan, from well understood reservoirs ■ Discovered in 1974 – $311 million previously invested by prior operator, with tax pools of $305 million ■ PetroTal has invested $105 million in first 2 years to
Slide 10: Bretaña Processing Capacity Phases for 2P Case
Bretaña Processing Capacity Phases for 2P Case1 LTT (completed Dec. 2018) CPF1 (commissioning started late Dec. 2019) CPF2 (commissioning to start late Aug. 2020) 9
Slide 11: Bretaña Field: Export Routes
Bretaña Field: Export Routes Multiple export routes, diversifying evacuation risk and preserving pricing optionality ■ First 1,200 bbl/d sold to Petroperu’s 10,000 bopd Iquitos refinery Alternative Export Routes o Shortest route to market and potential for expansion with improved quality o Oil trans
Slide 12: Bretaña Field: Geology
Bretaña Field: Geology Simple and well understood geology allows for clear development plan and production uplift Field Structure & Seismic Line (P1 + P2 Locations) ■ Simple 4 way closure anticline – 15 km long and 10,000 acres o Field structure and reservoir continuity delineated by multiple wells
Slide 13: Exploration Opportunities and Near Term News Flow
Investor Presentation December 2019 Exploration Opportunities and Near Term News Flow Oil-Focused, Balanced Portfolio Pure Play Delivering both steady production growth and high impact exploration 12
Slide 14: Block 107
Block 107 Multiple High-Impact Prospects and Leads ■ 100% owned and operated, located in the Ucayali basin Identified Opportunities ■ Constitución, which is adjacent to a new road, could be considered an initial target to de-risk Block 107 ■ Osheki prospect has a best unrisked prospective resources
Slide 15: Constitución Prospect
Constitución Prospect Perfect Step Towards Drilling the Osheki Prospect ■ Constitución prospect has 78 mmbbl of mean prospective resources ■ Constitución is adjacent to a new road, could be considered an initial target to de-risk Block 107 ■ Applying for EIA drilling permit for four oil wells and on
Slide 16: Near-Term Newsflow
Near-Term Newsflow Multiple Upcoming Catalysts Q1 ‘20 Q2 ‘20 Q3 ‘20 Q4 ‘20 Bretaña Drill Horizontal Well 6H Drill Water Disposal Well 3WD Drill Horizontal Well 7H Drill Horizontal Well 8H Drill Horizontal Well 9H Start CPF-2 Commissioning Exit @ 20,000 bbl/d Blocks 95 and 107 Exploration Constitució
Slide 17: Summary
Investor Presentation December 2019 SummaryOil-Focused, Balanced Portfolio Pure Play Delivering both steady production growth and high impact exploration 16
Slide 18: Summary
Summary ■ As expected, Bretaña's 2P reserves and corresponding recovery factor are growing o Current production of 10,000 bbl/d, with 2020 exit rate target of 20,000 bbl/d o 2020 production of 4.94 mmbbl, a 3.3x increase from 2019 o Now drilling 6H horizontal oil well, expected to be competed by mid
Slide 19: Appendix
Investor Presentation December 2019 AppendixOil-Focused, Balanced Portfolio Pure Play Delivering both steady production growth and high impact exploration 18
Slide 20: Pricing Comparison
Pricing Comparison 2020 2021 2022 2023 2024 2025 1 NSAI - January 01, 2020 $/bbl $66.33 $67.94 $70.06 $71.66 $73.27 $74.57 Strip2 - January 01, 2020 $/bbl $62.93 $58.90 $57.13 $56.70 $57.16 $57.84 Strip3 - February 21, 2020 $/bbl $57.89 $56.39 $56.09 $56.38 $56.88 $57.35 1) NSAI oil prices are based
Slide 21: Government will invest $1.6 billion in local communities
Government will invest $1.6 billion in local communities La Region, Iquitos – February 16, 2020 The plan to close gaps for the oil circuit in Loreto will require an investment of S/ 5.3 billion (approximately USD 1.6 billion) in the next 6 years, prioritizing public spending on projects, actions a
Slide 22: Disclaimers
Disclaimers Forward-Looking Information Certain information included in this presentation constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”,
Slide 23: Disclaimers (continued)
Disclaimers (continued) Oil and Gas Advisories Reserves Disclosure. The reserve estimates contained herein were derived from a reserves assessment and evaluation prepared by Netherland Sewell & Associates, Inc. (“NSAI”), a qualified independent reserves evaluator, with an effective date of December
Slide 24: Disclaimers (continued)
Disclaimers (continued) BOE Disclosure. The term barrels of oil equivalent (“BOE”) may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion m
Slide 25: (6 PetroTal
(6 PetroTal