PetroTal Reports Increase in Oil Reserves and Better Than Expected January Production
PetroTal, the Calgary-based oil-and-gas producer, announced on Monday that its proven oil reserves had increased by 6% to 48 million barrels at the end of last year. Additionally, its proven and probable reserves were up by 4% to 100 million barrels.
This rise in reserves resulted in a 9% increase in the pretax net present value of PetroTal’s proven and probable reserves, reaching $2.54 billion. Furthermore, the company’s total proved plus probable and possible reserves saw a significant 19% surge, totaling 199.6 million barrels.
PetroTal attributes its success to the combination of drilling achievements and the field’s strong natural aquifer support, which allow for recovery factors exceeding 30%. This has solidified its reputation as a world-class oil operation, poised to generate substantial free cash flow over the next two decades, according to President and Chief Executive Manuel Pablo Zuniga-Pflucker.
The company’s oil production for the month of January surpassed expectations, averaging at 20,450 barrels per day. PetroTal primarily focuses on oil-and-gas assets in Peru.
Analyst comment
Positive news. PetroTal’s increase in oil reserves and better-than-expected January production indicate strong growth potential. This will likely result in increased revenue and profitability for the company, positioning it as a strong player in the oil market.
