PetroTal, the Calgary-based oil and gas developer focused on oil assets in Peru, reported a 2022 net profit of $188.5 million, or 44 percent of its 2022 exit market cap .This is a significant increase from the $63.9 million in net income achieved in 2021.
“I am proud of our performance in 2022, a year in which the company was resilient despite facing a number of challenges. We are pleased with the operational and financial results of 2022, having significantly improved the operational stability of the company in recent months from both a sales and balance sheet perspective. In addition, it was equally important that we fulfilled our promise to investors to fully repay our bonds and initiate a capital return program to our group of patient and deserving shareholders,” said Manuel Pablo Zuniga-Pflucker, president and CEO of PetroTal.
During the 12 months, the company invested a total of $94.2 million in capital expenditures, an increase of $12.1 million (15%) over 2021, driving a 36% increase in the interannual production. The company noted that annual average production and sales reached 12,200 and 13,168 barrels of oil per day, respectively.
Since the beginning of 2023, the company has continued on a positive trajectory. PetroTal said it began drilling the 14H well on February 8, following the successful drilling and drilling of the company’s third water removal well on January 29, 2023.
Well 14H will be the longest horizontal well ever drilled in Peru with a total measured depth of about 16,850 feet, the company said. The well took 38 days to drill and encountered excellent Vivian sands with over 2,755 feet of net pay. The company said the available production capacity is essential to allow it to ramp up production quickly when additional sales capacity becomes available.
Low river levels in late 2022 led to an overweight of available barges in the field in late December 2022 and early 2023, the company said in its report. During January and February 2023, the company was only able to produce approximately 7,600 bopd and 8,000 bopd, respectively.
By the end of February 2023, PetroTal was able to ramp up production and will now produce and sell on an evenly distributed and expanded fleet chain for the remainder of the year. According to the report, production from March 1, 2023 to March 29, 2023 has averaged approximately 20,500 bopd.
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