Page 18 - LatAmOil Week 33

LatAmOil NEWS IN BRIEF LatAmOil

Crown Point Energy Inc. is an international oil ($10.50 per barrel) compared to $16.1mn amount are not due until into 2021.
and gas exploration and development company ($17.18 per barrel) for Q1-2020, reflecting the Manuel Pablo Zuniga-Pflucker, President
headquartered in Calgary, Canada, incorpo- variable cost nature associated with lower pro- and CEO, commented: “In the face of a difficult
rated in Canada, trading on the TSX Venture duction; The Company had cash of $20.4mn macro environment, I am very pleased with
Exchange and operating in South America. at the end of Q2-2020 compared to $7.4mn at PetroTal’s performance during the second quar-
Crown Point’s exploration and development the end of Q1-2020; Net operating income was ter of the year. A number of the steps we took to
activities are focused in two of the largest pro- $2.8mn ($6.40 per barrel) compared to net oper- preserve the Company’s liquidity began to yield
ducing basins in Argentina, the Austral basin in ating income of $17.8mn ($18.98 per barrel) in results, which enabled us to deliver a break-even
the province of Tierra del Fuego and the Neu- Q1-2020; quarter.
quén basin, in the province of Mendoza. Crown The Company has a contingent derivative “Whilst it is disappointing that we had to shut
Point has a strategy that focuses on establishing liability relating to oil sold to PetroPeru, and the in the Bretana oil field post period end, it is a tes-
a portfolio of producing properties, plus produc- timing difference between when PetroPeru pro- tament to the team as to how quickly we were
tion enhancement and exploration opportuni- vides an initial payment for the oil and when the able to get production back up and running prior
ties to provide a basis for future growth. final settlement price is calculated. As at March to this shutdown, quickly achieving over 12,000
Crown Point, August 18 2020 31, 2020, this liability was $40.4mn, as a result bpd when all seven wells commenced produc-
of the fall in oil prices in that quarter. As at June tion. First and foremost, we are a Peruvian led
PetroTal announces 30, 2020, this amount was reduced to $22.2mn, and operated oil company whose mission and
reflecting the rise in oil prices during the most vision is in tune with the local communities, so
Q2-2020 financial recent quarter. The amount of the ultimate we look forward to working with all our stake-
actual liability will be crystallised when the oil is holders to get production at the field up and run-
and operating results actually sold by PetroPeru, which is expected to ning as soon as practically possible.”
occur in Q3 and Q4;
PetroTal, August 17 2020
Q2-2020 Operational Highlights: The 6H well During May 2020, the Company received
began operations on April 10, 2020, producing financial support related to the COVID-19 eco- Canacol Energy reports a
approximately 5,750 barrels per day (bpd) of nomic impact totaling $3.2mn. The Peruvian
oil initially, with average production of approx- government sponsored a stimulus programme 26% increase in realised
imately 4,329 bpd for the first 30 production that provided $2.9mn (to be repaid over three
days during April. The 6H well was completed years, with repayment commencing after one contractual gas sales
on time and under the original $12.6mn budget. year for a two year period, at an annual inter-
On May 7, 2020, the health department of est at 1.12%) and the US government provided Canacol Energy is pleased to report its finan-
the Peruvian government issued a directive for $300,000 under the Paycheck Protection Pro- cial and operating results for the three and six
COVID-19 prevention in certain high risk areas. gramme (no repayment is required). months ended June 30, 2020.
As a result of the directive: PetroPeru temporar- Liquidity Update: At August 17, 2020, Petro- Financial and operational highlights of the
ily shut down pipeline operations; Operations at Tal has cash resources of $13.5mn, with accounts Corporation include: Realised contractual
the Bretana oil field were temporarily shut in due payable and accrued liabilities of approximately natural gas LNG sales increased 26% and 46%
to storage capacity limitations (the Bretana oil $37mn, a reduction of $12mn from the end of to 152.2 mcf per day and 176.9 mcf per day for
field was producing approximately 11,500 bpd Q2-2020. Ongoing payments will be managed the three and six months ended June 30, 2020,
prior to being shut in); The oil field shutdown from expected oil field revenues and internal respectively, compared to 120.5 mcf per day and
triggered significant reductions in operating cash resources. Pursuant to contractual terms 121.3 mcf per day for the same periods in 2019,
and transportation costs; The Company pro- with our suppliers, approximately 23% of the respectively.
actively reduced its general and administrative
costs, inclusive of an average 20% compensation
reduction for management and directors; and in
light of global market uncertainty, postponed the
drilling of a second water disposal well, delayed
completion of CPF-2 facilities, and postponed
drilling of the BN 95-7H horizontal well.
Q2-2020 Financial Highlights: Reve-
nue decreased to $9.8mn ($22.87 per barrel)
compared to $41.8mn ($44.51 per barrel) in
Q1-2020, due to the global oil price collapse and
the COVID-19 pandemic, which led to the field
being shut in on May 7, 2020. The average Brent
oil price dropped by 42% to $29.19 per barrel
from $50.14 per barrel for Q1-2020; Royalties
to the Peruvian government were $0.1mn (1.3%
of revenue) compared to $1.8mn (4.3% of rev-
enue) for Q1-2020; Cash flow from operations
was $0.9mn compared to $15.1mn in Q1-2020;
Operating costs were $2.4mn ($5.67 per barrel),
a reduction from $6.0mn ($6.42 per barrel) for
Q1-2020; Transportation costs were $4.5mn

P18 www. NEWSBASE .com Week 33 19•August•2020