Page 19 - LatAmOil Week 02 2021

LatAmOil NEWS IN BRIEF LatAmOil

FINANCIAL a partner to drill the Osheki prospect in Block 0.77bn and 1.44bn barrels of oil and the 2021
107. The Company’s management team has sig- work programme is targeting exit production of
PetroTal announces nificant experience in developing and exploring about 2,500 bpd (2020 exit rate of 500 bpd).
Simon Potter, CEO of BPC, said: “In August
for oil in Northern Peru and is led by a Board of
contemplated $100mn Directors that is focused on safely and cost effec- 2019, BPC embarked on a bold strategy to
self-fund the drilling of Perseverance-1 in The
tively developing the Bretaña oilfield.
bond issue PetroTal, January 12 2021 Bahamas, as well as to seek to complement that
high-impact exploration activity with produc-
PetroTal is pleased to announce that it has man- Bahamas Petroleum Co. tion and thus cash generative assets. We knew it
dated Pareto Securities AS to arrange a series would require capital to facilitate such a growth
of fixed income investor virtual meetings com- provides update on strategy, and, accordingly, we laid out a clear plan
mencing January 14, 2021. as to how we would secure that capital incremen-
Subject to, inter alia, market conditions, a funding strategy tally over time.
new $100mn senior secured three year bond “Now, with drilling in The Bahamas well
issue may follow. The proceeds of the poten- Bahamas Petroleum Company (BPC), the Car- underway, and with a broad programme of val-
tial Bond Issue will be used to settle in full the ibbean and Atlantic margin-focused oil and gas ue-adding work about to kick off in Trinidad
cumulative oil price difference liability owed to company, with production, appraisal, develop- and Tobago and Suriname, we continue to draw
Petroperu (approximately $16.6mn, as previ- ment and exploration assets across the region, on the various elements of the funding package
ously announced); to finance the ongoing devel- has provided an update on its funding. we worked hard to put in place over the past 18
opment of PetroTal’s flagship Bretaña oilfield in Highlights: Put option exercised to raise months. Today’s option exercise, to raise a fur-
Northern Peru; to provide funds to support the a further GBP3.75m (through the issue of ther GBP3.75m, is consistent with that strategy.
Company’s hedging program; and to finance 187.5mn new ordinary shares at 2p per share), “Given the range of components to our fund-
potential synergistic acquisitions. Further details bringing total funding since August 2019 to ing, we are today providing shareholders with a
will be provided as and when appropriate. $52mn, with current undrawn potential fund- clear reconciliation of our delivery against the
Bretaña Update: On January 7, 2021, the ing sources in-place for up to a further $20mn. funding strategy we articulated in August 2019.
Company announced that, coincident with If remaining potential funding sources are avail- This represents, in our view, a transparent and
full commencement of Petroperu’s Northern able and drawn in full, this would represent accurate measure by which the Board and man-
Oil Pipeline (ONP) operations, PetroTal’s pro- successful completion of BPC’s current fund- agement should be held accountable.
duction was approximately 9,500 barrels per ing strategy, initiated in August 2019, secur- “We believe that the delivery of our funding
day (bpd) of oil and was expected to increase as ing a total of $72mn. This represents adequate package, and thus the portfolio-wide work pro-
operations returned to a stabilized level. Since funding to meet not just the costs of drilling the gramme it supports, represents a considerable
January 7, 2021, oil production has increased Perseverance-1 well (at 100% ownership, oper- achievement when considered in the context
to an average of 10,025 bpd, with optimisation atorship and control), but also the costs of an of depressed equity markets (particularly in
continuing. extensive 2021 work programme on a suite of the energy sector), oil price weakness, and the
Additionally, as PetroTal continues to ensure production, appraisal and development assets material cost, timing and operational challenges
it has export optionality, the Company has now in three other complementary jurisdictions, as caused by both Covid-19 and the last-minute –
signed an agreement for a second pilot ship- well as all geological and geophysical (G&G) but ultimately unsuccessful – legal challenge to
ment through Brazil in February 2021, of up costs across the business through to mid-2022. BPC’s drilling operations in The Bahamas.”
to 220,000 barrels of oil. The increased volume Perseverance-1 targeting resources of between Bahamas Petroleum Co., January 12 2021
of this shipment over the initial pilot export is
expected to improve overall economics and lead
towards the establishment of regular exports,
complementing sales into the ONP and to the
Iquitos refinery.
Proceeds from the contemplated Bond Issue
will allow PetroTal to resume development drill-
ing at Bretaña in March 2021. In anticipation of
expected higher oil production, the modular
processing equipment for expansion of the
second phase of Central Processing Facilities
(CPF#2) is complete and is currently en route to
Bretaña.
PetroTal is a publicly‐traded, dual‐quoted oil
and gas development and production company
domiciled in Calgary, Alberta, focused on the
development of oil assets in Peru. PetroTal’s flag-
ship asset is its 100% working interest in Bretaña
oilfield in Peru’s Block 95, where oil production
was initiated in June 2018, and in early 2020
became the second largest crude oil producer
in Peru. Additionally, the Company has large
exploration prospects and is engaged in finding

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