- PetrolTal (TSXV:TAL) have completed a third well at the Bretana Oil Field in Peru
- The company has announced it’s suspending dividends, effective immediately
- PetroTal will also suspend the drilling of a further well, to preserve cash
- The new field achieved record quarterly production in Q1 of 9,688 equivalent barrels per day of oil
- PetrolTal Corp (TAL) is down 5 per cent and is currently trading at C$0.18 per share, with a market cap of $120 million
PetrolTal Corp (TSXV:TAL) has completed its third well at the Bretana Oil Field in Peru.
The company’s new 6H well came online on April 10th and is producing 5,750 average barrels per day, in line with expected production.
The well was completed on time and under the budget of $12.6 million set for the well.
Overall, the Bretana field produced 9,688 equivalent barrels per day.
However, the energy sector has seen some huge up’s and downs in the last two months, and energy companies are all making adjustments.
This has meant PetrolTal is suspending its dividend, effective immediately. The company has stated the board will evaluate this decision on a semi-annual basis and will reinstate dividends when appropriate.
PetroTal has also announced it’s suspending the drilling of another planned well at its Peruvian oilfield, as the company looks to further control cash spend in these turbulent times.
The company has announced the suspension of a water well, planned to be drilled after 6H.
Furthermore, the company also hopes to establish a credit facility for the year.
Manolo Zuniga the President and CEO of PetroTal said the company was pleased with its strong drilling performance.
“The 6H well complements the performance of the 4H and 5H wells, and over the next few months, PetroTal will focus on optimising production from our seven producing oil wells and preserving the company’s capital position.
“I want to sincerely commend the entire PetroTal team for their ongoing determination to deal with the COVID-19 pandemic and I look forward to keeping all of our stakeholders appraised of developments over the coming months,” he said.
PetroTal Corp (TSXV:TAL) is trading down 5 per cent at C$0.18 per share at 9:56am EST.