Page 15 - LatAmOil Week 17 2022

LatAmOil NEWS IN BRIEF LatAmOil

To mitigate against potential recurrences, plus probable plus possible (3P) reserves by 53%
the Company is upgrading in-field power and 39%, respectively, to 78mn and 147mn bar-
infrastructure including installation of a new rels of oil;
transformer and several generator-sets in the Material progression of 2P after tax net pres-
Company’s primary producing fields. In addi- ent value discounted at 10% (NPV-10) reserve
tion, other planned facilities and infrastructure value per share of $1.23, up 62% from 2020;
upgrade works continue, so as to improve day- Generated 2021 proved (1P) and 2P reserve
to-day production integrity and operational replacement ratios of 457% and 816%, respec-
resilience. The objective of this work is to protect tively; and,
and maximise the Company’s cash generating Created the framework for a social trust
capacity. representing 2.5% of production, to create long
Eytan Uliel, CEO of Challenger Energy, said: standing alignment between communities and
“During the first quarter of 2022, our Trinidad government, with a view to minimising social
and Tobago operations generated a cash operat- downtime, maximising social profitability, and
ing surplus, based on production that averaged developing community projects that will have a
around 360 bpd, and realised oil prices across the significant positive impact near the Company’s
quarter averaging approximately $83 per barrel. Bretaña oilfield.
This encouraging first-quarter result reflects a Manuel Pablo Zuniga-Pflucker, President
renewed focus on routine operations, stringent and Chief Executive Officer, commented: “2021
cost control, and the committed efforts of every- will be remembered for many significant oper-
one in the Challenger Energy team. ational, commercial and financial milestones
“I’d also note that both average production achieved by the PetroTal team. When uncon-
and realised prices achieved in the first quarter strained, PetroTal is the largest crude oil pro-
of 2022 are considerably below the levels we are ducer in Peru and our management team is
seeing as we start the second quarter, where the that Guyana receives the best price for each cargo well aware of the responsibilities and delivera-
Company is benefitting from continued strong from both the Liza and Unity Gold crudes. The bles that accompany that stature. Our goals for
oil prices globally and higher production. The forecasted price for this first lift of the Unit Gold 2022 are very clear, and given the tailwind of a
increased and more stable base line produc- crude for Guyana is $106 per barrel. robust commodity price environment aiding us,
tion we are currently enjoying has been gained Government of Guyana, April 23 2022 we believe the Company can add tremendous
through a targeted work programme aimed at value. Having met our original goal of 20,000
production enhancement, made possible due to PetroTal announces 2021 bpd, the team is now focused on achieving a new
the successful completion of our restructuring production target of 25,000 bpd with minimal
and recapitalisation in March 2022. year-end financial and social downtime. I would like to thank PetroTal’s
“We have more production accretive work shareholders, directors, employees, and con-
being planned for the coming quarters and I look operating results tractors for their continued support and I look
forward to reporting on further improvements forward to keeping the market updated on the
as the year progresses.” PetroTal, an oil and gas development and pro- Company’s progress throughout the remainder
Challenger Energy, April 27 2022 duction company focused on development of oil of 2022.”
and gas assets in Peru, has announced its finan- PetroTal, April 28 2022
Government of Guyana cial and operating results for the year and three
months (Q4-2021) ended December 31, 2021.
receives first entitlement Achieved production of 8,966 barrels per day
2021 Significant Milestones and Highlights: PROJECTS & COMPANIES
lift from Liza Unity FPSO (bpd) of oil and sales of 8,449 bpd, up 58% and BW Energy proceeds with
48%, respectively, from 2020;
The Government of Guyana has announced that Recorded a 5th straight quarter of production phased development
it will be receiving its first entitlement lift of the growth; reaching 10,147 bpd in Q4-2021 from
Unit Gold crude from the Liza Unity Floating 9,508 bpd in Q3-2021; of Maromba, agrees to
Production Storage and Offloading (FPSO) pro- Achieved a four-year Company target of
duction platform during the period of April 23rd 20,000 bpd in mid-December 2021 under- purchase FPSO
to 24th. The usual lifting entitlement amount of pinned by strong production rates from the
1mn barrels of oil will be loaded onto the vessel newly drilled 8H and 9H wells in late Q3-2021 BW Energy has decided to proceed with the
MV DIMITRIOS by the terminal operator. and Q4-2021 that each reached over 8,500 bpd, Maromba development project offshore Bra-
The first cargo of Guyana’s lifting entitle- respectively; zil and signed an agreement to purchase the
ment was sold to ExxonMobil Sales and Supply Generated record net operating income FPSO Polvo from BW Offshore. The FPSO will
following a competitive bidding process by the (NOI) and EBITDA in 2021 of $105mn and be upgraded and redeployed on the field. The
five companies, inclusive of the covertures of the $90mn, up approximately 3.6x and 5x, respec- development plan is based on an initial drilling
Stabroek Block. The ExxonMobil affiliate bid was tively, from 2020; campaign of three wells with planned first oil in
the best on the pricing differential for the crude Generated record funds flow provided by 2025 and a second campaign with a further three
and this lift will incur no marketing fee by the operations(a), before changes in working capital wells in 2027. The investment decision is subject
lifter. This lift is a one-off arrangement for the of $86.7mn, up over 5x from 2020; to certain conditions precedent, including com-
company. The GoG will be working to ensure Grew proved plus probable (2P) and proved pletion of the project financing.

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