Page 15 - LatAmOil Week 14 2021

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PERFORMANCE

PetroTal announces Q1-2021

operations update

PetroTal has announced an operational update
for Q1-2021.
The Company has successfully completed the The current incremental value of the arranged $2.19mn, as compared to Q4-2019 which
workover of its 4H well, which was previously true-up payments to PetroTal, which is subject reported $250,000 of net cash used by operating
announced on February 18, 2021. The budget for to change, is approximately $36mn, based on activities and $1.78mn of funds flow from oper-
this operation was $1.1mn with an actual spend the March 25, 2021 forward Brent strip oil price ating activities;
of $984,000, 7% under budget. The new elec- forecast. Earned $4.1mn of oil and natural gas sales
tro-submersible pump (ESP) that was installed PetroTal, April 07 2021 revenue on average daily sales volumes of 1,878
has a nominal capacity of 12,000 barrels of fluid boe per day, down from $5.8mn of oil and natu-
per day (bfpd) versus 8,000 bfpd with the old Alvopetro announces ral gas sales revenue earned on average daily sales
model. Since the workover, the 4H well has been volumes of 1,891 boe per day in Q4-2019 due to
producing approximately 2,300 bpd, compared March sales volumes ongoing natural decline rates in gas production;
to 1,872 bpd, prior to the pump failure. The Received an average of $1.59 per mcf for nat-
Company plans to install similar higher capacity Alvopetro Energy announces March sales vol- ural gas and $34.10 per bbl for oil compared to
ESPs in most of the Bretana oil wells to optimise umes of 2,383 boepd, including natural gas $2.00 per mcf for natural gas and $54.62 per bbl
production and oil recoveries. sales of 13.7 mcf per day and associated nat- for oil received in Q4-2019;
Notwithstanding the downtime of the 4H ural gas liquids sales from condensate of 103 Reported an operating netback of $8.66
well, production still averaged approximately bpd, based on field estimates. Our March sales per boe, down from $9.60 per boe in Q4-2019
7,300 bpd in Q1-2021, with a promising March volumes bring our estimated first quarter daily due to the drop in oil and natural gas prices in
31, 2021 exit production rate of 8,275 bpd. This sales to 2,175 boepd, an increase of 11.5% from Argentina offset by a reduction in per boe oper-
is materially on budget and 2021 production the fourth quarter. March sales volumes repre- ating costs due to the transport of oil through
guidance is unchanged as announced on Febru- sent our highest average monthly sales volumes the newly commissioned Company-owned San
ary 18, 2021, with an expected year end exit rate to-date, all due to increased demand from our Martin oil pipeline which negated the need for
of 18,000 to 19,000 bpd. offtaker, Bahiagás. certain trucking and lowered transportation
The Company continues to progress the Alvopetro has amended its Annual General costs in Q4-2020;
installation and tie-in of the CPF-2 expansion Meeting date to June 22, 2021, beginning at 9:30 Recognised $1.6mn of property and equip-
facilities, which will take overall processing a.m. As a result of the COVID-19 pandemic ment impairment as a result of lower forecasted
capacity to 124,000 bfpd with the ability to han- and public health recommendations in place commodity prices. Impairment related to prop-
dle 24,000 bpd by mid-September 2021, coin- which limit gathering sizes, Alvopetro plans to erty and equipment may be reversed in future
ciding with completion of two new oil storage host the meeting virtually. Shareholders will not periods if there are indicators of reversal such as
tanks, bringing storage capacity at the field to be permitted to attend the meeting in person. an improvement in commodity price forecasts;
90,000 barrels of oil. The remaining components The Management Information Circular and all Repaid $800,000 (ARS67.5mn) and obtained
of the CPF-2, principally the additional forma- related meeting materials will be available on $600,000 (ARS50mn) of short-term working
tion water treatment facilities, will be ready in our website and www.sedar.com closer to the capital loans; and Reported a working capital
Q3-2021, coinciding with expected production meeting date. surplus of $3.0mn.
increases. The CPF-2 total investment remains Alvopetro Energy’s vision is to become a Subsequent to Q4-2020, the company:
at $24mn, with the remaining $12mn in the leading independent upstream and midstream Repaid $700,000 (ARS60.2mn) and obtained
2021 budget, costing $4mn less than originally operator in Brazil. Our strategy is to unlock the $600,000 (ARS50mn) of short-term working
estimated. on-shore natural gas potential in the state of capital loans; and
Liquidity Update: At March 31, 2021, Petro- Bahia in Brazil, building off the development Was awarded, together with partner Petrol-
Tal has a cash position of approximately $76mn, of our Caburé natural gas field and our strategic era Aconcagua Energía (“Aconcagua”), a 25-year
of which $53mn is unrestricted, with $20mn midstream infrastructure. exploitation license for the 40.6-square km
dedicated to accretive acquisitions and $3mn as Alvopetro, April 06 2021 Chañares Herrados producing oil block, located
collateral for commodity price hedges. Accounts in the Cuyo Basin approximately 50 km south of
payable and accrued liabilities are approxi- Crown Point announces Mendoza City, Province of Mendoza. The Com-
mately $37mn, a 16% reduction from $44mn at pany and Aconcagua each hold a 50% working
December 31, 2020. Ongoing payments will be operating and financial interest in the concession which will be operated
managed from expected oil field revenues and by Aconcagua. Under the terms of the exploita-
internal cash resources. Pursuant to contractual results for Q4-2020 tion license agreement, the joint venture will
terms with our suppliers, approximately $6mn make a cash payment of $8.3mn ($4.15mn net
(16%) is not due until after Q2-2021. Crown Point Energy today announced its oper- to Crown Point) to the Province, pay a 13% roy-
As previously announced on March 31, 2021, ating and financial results for the three months alty on oil production and commit to a $85.7mn
PetroTal will benefit from commodity prices and year ended December 31, 2020. ($42.85mn net to Crown Point) 10-year work
hedges that have been placed to ensure cash flow During Q4-2020, the Company: Reported program which includes well workovers, infra-
stability for the capital expenditure program and net cash used by operating activities of $30,000 structure optimisation and a multi- well drilling
a sufficient cushion over all the bond covenants. and funds flow from operating activities of programme.

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