Page 15 - LatAmOil Week 03 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
Production guidance: With this capital pro- gramme, the Company expects 2020 average production to range between 12,500 bpd and 14,500 bpd with an average target of 13,500 bpd, representing a 227% increase from the 2019 average production of 4,131 bpd, and a 74% rise above the Q4 2019 average production of 7,757 bpd.
The 2020 exit production rate is expected to be 20,000 bpd, a significant increase from the 2019 exit rate of 13,300 bpd.
In the first half of 2020, the Company will drill one new oil production well and one water disposal well after the drilling rig has completed its annual maintenance program; resulting in expected production for the first half to average 10,750 bpd, ranging between 10,000 bpd and 11,500 bpd.
This represents a 35% increase from the Q4 2019 oil production average. In the second half of 2020, the Company will drill three new oil production wells and expects that average pro- duction will increase to 16,500 bpd, ranging between 15,500 bpd and 17,500 bpd.
Capital programme funding: Based on this production guidance and utilising an average forward strip Brent oil price of $61.60 per bar- rel, the Company expects to fully fund the 2020 capital programme with funds generated from operations and available cash resources; setting the stage to become a free cash-flowing company by year-end 2020.
Manolo Zuniga, President and Chief Execu- tive Officer, commented: “We are pleased with the success the Company has achieved to date developing the Bretaña oil field and plan to build on that success in 2020. PetroTal’s Board has approved the 2020 capital budget which is similar in scope to last year and we are confident in our ability to execute it. With each new well drilled, we better understand the underlying reservoir, thereby enhancing our confidence in continued, focused growth in our two Peruvian blocks.
“The current and expected oil production levels provide a solid base which optimises our cost structure and generates significant funds from operations.
“Building on the 2018 goal of putting the original oil well online in just five months, 2019 became a successful catalyst year for determin- ing the oil fields’ capacity for strong organic growth. 2020 is the year we expect to grow into a Company with long term production and cash flow stability.
“PetroTal remains committed to bring about a beneficial change for the populations within its scope of influence in the region. I sincerely thank the entire PetroTal team and Board, as well as all
our shareholders, for their continued support.”
PetroTal, January 21 2020
INVESTMENT
Petrobras on
non-binding phase
of assets in Uruguay
through two logistics storage terminals, being the largest trader in the country. Regarding the logistics, it also has multiple delivery points located in the main public seaports of the country.
Petrobras, January 17 2020
Petrobras announces
non-binding phase
for the sale of TAG
Petrobras, following up on the press release dis- closed on 12/11/2019, announces the beginning of the non-binding phase related to the sale of its remaining equity stake (10%) in the company known as Transportadora Associada de Gás S.A. (TAG).
Potential buyers qualified for this phase will receive a descriptive memorandum with more detailed information about the aforementioned company, as well as instructions on the divest- ment process, including guidelines for preparing and submitting non-binding proposals.
About TAG: TAG is a company operating in the natural gas transportation segment, cur- rently holding long-term permits to operate and manage a 4,500 km gas pipeline system, located mainly in the North and Northeast regions of Brazil, with installed capacity of 75mn cubic metres per day.
The group formed by ENGIE and the Cana- dian fund Caisse de Dépôt et Placement du Québec has a 90% stake in TAG, acquired from Petrobras in June 2019.
Petrobras, January 17 2020
Petrobras, following up on the press release disclosed on 11/12/2019, related to the sale of 100% of the shares held by Petrobras Uruguay Sociedad Anónima de Inversiones (PUSAI) – a subsidiary of Petrobras – in Petrobras Uru- guay Distribuición S.A. (PUDSA), informs that the project´s non-binding phase is underway, as described in the teaser, with expectation of the beginning of the binding phase in the next weeks.
Potential buyers qualified for this phase have already received a descriptive memorandum with more detailed information about the afore- mentioned company, as well as instructions on the divestment process, including guidelines for preparing and submitting non-binding proposals.
About the assets in Uruguay: In Uruguay, Petrobras operates, through PUDSA, in the fuel and lubricant distribution market, with an asset portfolio that includes a network of 90 service stations, 16 convenience stores, a lubricant logis- tics terminal, and a jet fuel plant, being the sec- ond largest fuel distributor in the country. It also operates in the distribution of liquid fertilisers
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