Page 10 - LatAmOil Week 42 2019

LatAmOil
NEWS IN BRIEF
LatAmOil
Manolo Zuniga, President and Chief Executive Officer, commented: “Our drilling campaign continues to yield excellent results. e strong initial production from the 4H well validates our development plan. Our rst horizontal well completion will provide signi cant data and the AICD valve will bring more oil into the wellbore. We are pleased to announce a number of recent milestones: 500 days of production, more than 1mn barrels of oil produced and new record pro- duction of over 8,000 bpd (from only three wells as the production facilities reached the upper limits of capacity).
“Our team is doing an outstanding job in its drilling and capital discipline. As a result, we asked the Board for additional capital to con- tinue our development drilling programme and make facility upgrades to sustain oil production of over 10,000 bpd. is additional capital will allow the company to reach free cash ow gener- ation faster and see our future drilling campaign funded from cash ow.
“Capital discipline is key, and having stressed that from day one, we have seen the teams in Houston, Lima, and the eld execute at a high level and in a safe and environmentally friendly manner. To save 20% on a single well is a very strong achievement. Our board’s approval of the additional capital to continue the development drilling campaign through year‐end is testament to solid execution and ongoing capital e ciency.
Facilities to enable us to attain the 10,000 bpd mark are scheduled to be commissioned in December 2019. e 5H well will help sustain oil production through the rst quarter of 2020 which is key as our next well will be an additional water disposal well in early 2020 to provide assurance in the eld. As part of the capital raise completed in May 2019, we promised to drill the 5H well and to drill a second water disposal well to provide assurance to production at Bretaña, and that is what we are delivering.”
PetroTal is a publicly‐traded, dual‐listed (TSX‐V: TAL and AIM: PTAL) oil and gas devel- opment and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s development asset is the Bretaña oil eld in Peru’s Block 95 where oil production was initiated in June 2018, six months a er acquisition. Additionally, the company has large exploration prospects and is
engaged in nding a partner to drill the Osheki prospect in Block 107. e company’s manage- ment team has signi cant experience in devel- oping and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost e ectively developing the Bretaña oil eld.
PetroTal, October 21 2019
President Energy reports on
acquisition of exploration
contract in Argentina
President Energy, the upstream oil and gas com- pany with a diverse portfolio of production and exploration assets focused primarily in Argen- tina, announces the conditional acquisition of an exploration contract in Rio Negro Province, Argentina, and the subscription for $1.825mn of new ordinary shares in the capital of the company.
On October 18, 2019, President Petroleum SA, a wholly owned subsidiary of the company, agreed to take an assignment from Compañia General De Combustibles, a signi cant oil and gas producer in Argentina, of their 100% interest in the exploration contract area known as Ango- stura, Rio Negro Province, Argentina.
Separately, CGC has agreed to invest $1.825mn in a number of instalments by sub- scribing for new ordinary shares at the prevailing market price at the time each instalment is due.
President has conditionally acquired from CGC the exploration contract covering the 384 square km area known as Angostura in the Rio Negro province, Argentina. Angostura is situ- ated directly to the west of President’s Las Bases Concession and the company’s pan-regional pipeline passes through the south west corner of the area.
Angostura currently produces 80,000 cubic metres per day of gas and 50 bpd of oil, rep- resenting in total slightly in excess of net 500 boepd. e acquisition will therefore increase President’s daily production by more than 10%. All the gas is currently compressed and dehy- drated within Angostura, sent by pipeline to President’s Las Bases facility and then conveyed by the Company’s own pan-regional gas pipeline to o -takers.
e oil will be taken by truck to Las Bases/ Puesto Prado and added to President’s existing oil production. ere are currently no reserves booked for Angostura.
CGC has agreed, conditional upon comple- tion of the acquisition, to invest $1.825mn in President by way of the subscription. On comple- tion of the acquisition, CGC will invest the sum of $500,000, converted into GBP at the prevailing exchange rate on the day prior to completion of
the acquisition, in order to subscribe for such number of ordinary shares, calculated at the closing mid-market price per ordinary share on the trading day prior to the completion of the acquisition. CGC has agreed not to dispose of any interest in the Initial subscription shares for a period of six months a er their issue.
CGC will thereafter invest the remaining $1.325mn in seven quarterly instalments in con- sideration for the issue of new ordinary shares at the prevailing MMP on the date prior to the rel- evant quarter date, with the rst such quarterly payment being due on January 25, 2020.
Peter Levine, Chairman, commented as fol- lows: “ is corporate action represents a contin- uation of the strategy of leveraging on our critical mass in Rio Negro and, in this case in particular, our strategic gas pipeline. The contemplated assignment would increase our production by over 10% whilst at the same time providing synergies and enhancing economies of scale. I welcome the contemplated investment of CGC, a substantial well-known and respected oil and gas company, as a shareholder in the company.” President Energy, October 21 2019
SERVICES
SBM Offshore makes
successful bid for partner’s
minority ownership in
Brazilian FPSOs
Further to the announcement dated Septem- ber 30, 2019 con rming its participation in the public sale auction of the equity ownership of Serviços de Petróleo Constellation in the lease and operating companies related to ve Brazil- ian FPSOs, SBM O shore con rms it has been formally designated as the successful bidder. Completion of the transaction remains sub- ject to various conditions precedent, including consent from client Petrobras and approval by the local antitrust authority CADE (Conselho Administrativo de Defesa Econômica). The total consideration for the equity ownership, excluding associated non-recourse project debt, is about $150mn.
e transaction includes the minority stake held by a liated companies of Constellation in the entities related to the following ve FPSOs (with Constellation’s ownership%age in brack- ets): Cidade de Paraty (20%), Cidade de Ilhab- ela (12.75%), Cidade de Marica (5%), Cidade de Saquarema (5%) and Capixaba (20%). SBM O shore is already the majority shareholder of the related entities and operator of these FPSOs. SBM Offshore, October 18 2019
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Week 42 24•October•2019