PetroTal reports record second quarter production

6th Jul 2023 15:05

(Sharecast News) - PetroTal said in a update on Thursday that during the second quarter, it achieved record production of 19,031 barrels of oil per day.

The AIM-traded firm said the impressive figure was driven by strong production from the newly--drilled 15H well, and the efficient utilisation of the Brazilian route for sales volume throughout most of the quarter.

It said the 15H well, in its first 25 days of production, maintained an average output of about 7,300 barrels per day.

The most recent rate recorded for the well was 6,040 barrels per day, with a total accumulation of 182,500 barrels of crude oil.

Additionally, the company brought the 14H well online early in the second quarter, with a recent rate reported at approximately 2,300 barrels per day.

Looking at its financials, PetroTal ended the second quarter in a solid cash and liquidity position.

The company said it had around $75m of unrestricted cash and $17m of restricted cash, totalling $92m.

It said the restricted cash included funds reserved for social trust funds to be deposited at a later date.

That cash position provided support for PetroTal's future plans, including returning capital to shareholders through regular dividends, special dividends, and share buybacks.

During the second quarter, PetroTal said it used its share buyback programme to purchase 582,708 shares at an average price of 56 US cents apiece.

PetroTal also said its accounts receivable, totalling around $100m, were contractually current, while accounts payable, amounting to about $59m, were primarily due within the next 50 days.

"The company is now moving its contracted drilling rig to service two of the initial Bretana oil wells," the PetroTal board said in its statement.

"As initially forecast, the next location - well 16H - will commence drilling late in the third quarter, once the new L2 West drilling platform has been fully tied in.

"PetroTal continues to monitor the Amazon River levels on the Brazilian side as the peak dry season settles in, and by next month the company should be able to either reaffirm or upgrade its current 2023 guidance."

At 1346 BST, shares in PetroTal were up 2.31% at 40.67p.

Reporting by Josh White for Sharecast.com.