PetroTal Provides Update on the Bretana Oil Field
Peruvian government announces Supreme Decree to increase funding to communities
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - September 9, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") expects and is ready to reopen the Bretana oil field as soon as the ongoing discussions between the communities and the Government of Peru have been ratified, which is expected in the next few days as reported by Government officials. PetroTal commends the efforts of all parties to reach a negotiated settlement that will ultimately benefit the communities, the Peruvian government, and all operating companies, including PetroTal.
On August 28, 2020, the Government of Peru announced a Supreme Decree ("Decree") approving the financial Gap Closure Plan within a number of provinces in northeast Peru, including Loreto, the area where PetroTal operates the Bretana oil field. PetroTal welcomes the announcement that the Decree provides for a six year financial commitment of approximately US$1.7 billion (6 billion soles) to the communities, of which US$46 million (162 million soles) will be designated for economic development of the localities over the next four months, by the Peruvian government. The Decree specifically addresses the local community participation criteria and takes steps to ensure that the funding process is properly monitored to ensure maximum benefit to the communities. The published Decree can be found at https://www.gob.pe/institucion/pcm/normas-legales/1124063-145-2020-pcm.
Since the announcement of the Decree, which PetroTal strongly supports, government and municipality representatives have been consulting with the community representatives on the Decree. After meeting with the Bretana community in the coming days, it is expected that PetroTal will restart oil production shortly thereafter.
In order to fully support the collective efforts of the communities and the government to reach an acceptable funding solution, PetroTal remains awaiting government agreements. PetroTal acknowledges the efforts at all levels of the Peruvian government to resolve the recent social disruption and to ensure a long term solution is in place to minimize future disruptions. Equally, the Company acknowledges the support received from the Bretana community.
Further updates on the reopening of the Bretana field and export of oil into the pipeline will be provided as and when appropriate.
PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL) (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru with more than 10,000 bopd of production. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field.
Executive Vice President and Chief Financial Officer
T: (713) 609-9101
Manuel Pablo Zuniga-Pflucker
President and Chief Executive Officer
T: (713) 609-9101
Mark Antelme / Jimmy Lea
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright / Rupert Holdsworth Hunt / Harry Baker
T: +44 (0) 7711 627449
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, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; the reopening of the Bretana oil field and resumption of oil production therefrom; the effect and implementation of the Decree; and the ongoing effects of Covid-19 on the Company and its employees. All statements other than statements of historical fact may be forward‐looking statements. Forward‐ looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward‐looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to: expectations and assumptions concerning the reopening of existing infrastructure, its ability to deliver production and the anticipated capital expenditures associated therewith; successful implementation of the Decree; prevailing commodity prices and actual prices received for PetroTal's products; the availability and performance of drilling rigs, facilities, pipelines, inventory and barge storage capacity, other oilfield services and skilled labour; royalty regimes; exchange rates; the application of regulatory and licensing requirements; current legislation; the success of future drilling and development activities; and general economic conditions. Although the Company believes that the expectations and assumptions on which the forward‐looking statements are based are reasonable, undue reliance should not be placed on the forward‐looking statements because the Company can give no assurance that they will prove to be correct. Since forward‐looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2019 and management's discussion and analysis for the three and six months ended June 30, 2020 which are available on SEDAR at www.sedar.com. The forward‐looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/63466