Page 14 - LatAmOil Week 27 2022

LatAmOil NEWS IN BRIEF LatAmOil

in July 2022.
INVESTMENT The latest four-day average production end-
ing on July 3, 2022, was a record 22,376 bpd of
Petrobras signs oil, with a peak production of 26,000 bpd of oil.
To accommodate sales availability, the Company
agreement with ANP on expects to maintain production between 18,000
and 19,000 bpd of oil with Brazilian exports
collection of SIX royalties increasing until the ongoing Northern Peruvian
Pipeline (ONP) repairs are completed, which is
Petrobras, following up on the release disclosed expected by September 2022.
on October 22, 2021, informs that it signed an The final Brent oil price for the 719,961-bar-
agreement today with the National Agency of rel lifting from Bayovar, announced on June 16,
Petroleum, Natural Gas and Biofuels (ANP) 2022, was $114 per barrel using the average ICE
relating to the collection of royalties on the oper- Brent oil price for the final ten days of June 2022,
ation of the Shale Industrialisation Unit (SIX), inclusive of usual pricing adjustments, thereby
located in São Mateus do Sul, state of Paraná, as finalising true up revenue of approximately CEO, commented: “PetroTal has now achieved
well as the concession contract to regulate shale $53.9mn, which is expected to be received in its seventh straight quarter of production growth
research and mining at SIX. August 2022. and has delivered another production record,
The agreement is subject to judicial homolo- Total cash at June 30, 2022 was $77.0mn, growing 21% in the quarter. 11H’s early techni-
gation and, once homologated, will terminate including $16.2mn of restricted cash. Estimated cal assessment estimates it will achieve an invest-
all judicial and administrative processes related accounts receivable and accounts payable at the ment payout by early August 2022 at current
to the collection of royalties and administrative quarter end were approximately $88 and $50mn, Brent oil prices and, like our other wells, help
fines arising from the mining of oil shale per- respectively. deliver a robust free cash flow profile thereafter.
formed at SIX. Perupetro has recently announced that it will Given our strong liquidity profile we are actively
The agreement involves the payment of formally include an addendum in the Block 95 assessing the Company’s ability to put in place
BRL601mn (value based on June/22) by the License Contract including the proposed 2.5% an accretive shareholder return policy upon
company, already provisioned in Petrobras’ social trust, completing a major administrative payout of the bonds, which we look forward to
financial statements. step for this social initiative. communicating about later in 2022. We are also
The decision to adhere to the agreement is Strong operational execution: Q2-2022 was a very excited about the agreement to include our
in line with the risk management policy associ- strong operational period for the Company, hav- social trust initiative into the Block 95 petroleum
ated with the management of contingencies and ing unconstrained production for the majority license, thereby accepting the concept into rule
with the strategy of generating value through the of the quarter. Production was supported with of law.”
negotiation of amounts in dispute. strong oil rates from wells 8H, 9H, and 10H, each PetroTal, July 5 2022
Petrobras, July 1 2022 flowing between 3,000 and 4,000 bpd of oil with
well 11H commencing production on June 30,
2022 at an initial four-day average of 9,550 bpd PROJECTS & COMPANIES
PERFORMANCE of oil. Well 11H was drilled and completed for an
estimated $13.8mn, which was on budget, and Touchstone provides update
PetroTal provides with total depth of approximately 4,300 metres, on status of Cascadura EIA
inclusive of the 1,125-metre horizontal section.
Q2-2022 operations which Petroperu expects to have completed by Touchstone Exploration has provided a further
The ONP is still undergoing maintenance,
and liquidity update September 2022. During this time, the Company update on the status of the Cascadura Environ-
anticipates restraining approximately 20% of mental Impact Assessment (EIA) in support of
Key Highlights: Q2-2022 production averaged field production which will be restored as 11H’s an application for a Certificate of Environmental
approximately 14,500 bpd of oil, a new quarterly flush production diminishes and as Brazilian Clearance, which must be approved by the Trin-
record, representing 7% above revised guidance exports are increased during this quarter. As a idad and Tobago Environmental Management
provided on May 26, 2022, the seventh straight result, the Company is targeting an overall pro- Authority (EMA) to conduct development oper-
quarter of production growth. duction range of 18,000 to 19,000 bpd of oil for ations within the Cascadura area in the Com-
Well 11H was put on production June 30, the third quarter. pany’s Ortoire block. Touchstone has an 80%
2022, and has averaged approximately 9,550 Enhanced liquidity expected in Q3-2022: The operating working interest in Ortoire block, with
bpd of oil over its first four producing days with robust forward free cash flow profile, combined Heritage Petroleum holding the remaining 20%
an estimated payout in early August 2022; Well with the strong June 2022 exit liquidity and the working interest.
11H was drilled and completed for an estimated recently executed Bayovar oil lifting, should Further to the Company’s announcement
$13.8mn, on budget, with total depth reaching minimise the impact of having to temporarily on June 27, 2022, and in accordance with the
approximately 4,300 metres inclusive of the constrain production to manage sales capacity. EMA’s regulated review process, Touchstone
horizontal section of 1,125 metres, and was com- The Company remains on target to execute its continues to engage with the EMA and respond
pleted with Autonomous Inflow Control Device debt repayment strategy in Q4-2022 or Q1-2023, to its queries to support the Cascadura area EIA
(AICD) valves. which will allow an accretive shareholder return application. The Company received an initial
Q2-2022 oil deliveries for export via Brazil policy to be examined and approved in Q4-2022, EIA Review and Assessment Report (RAR) from
were a record estimated 1.15mn barrels (12,600 if it is, as expected, economically viable. the EMA on May 5, 2022, and responded to the
bpd of oil) and are expected to further increase Manuel Pablo Zuniga-Pflucker, President and requests raised on May 15, 2022.

P14 www. NEWSBASE .com Week 26 30•June•2022