Petrotal Corpo. Share Price (PTAL)

Zen, Thanks for the explanation. If thats the logic then next years dividend would need to be 4% of whatever the SP will be. Even at 25p the dividend needs to increase from 0.3p to 1.0p. If the SP rises as expected then it needs to rise even more. That still seems very affordable given the FCF projections.

Vista -

This is the maiden dividend. It's only for the 6 month period which will end Dec 31 2019 but it's being paid in ***2 amounts*** ie 1/3rd on 20th Jan, the other 2/3rds sometime after April 2020. It's 2% for the 6 month period or an annualised 4%.

ZEN, invested here also but the dividend announced doesn't stack up if my numbers are correct. A total dividend of 0.3p at a SP then of 15p gives a dividend yield of 2%. I don't know how they can claim 4%?

With the dividend announced, i think any potential investor should consider where this is going. Look at 2019 production figures compared to 2020 average guidance of over 3X and a looming exit target of 20,000 bopd in 12 months.

From my post on 3rd December

'With 3 previous targets achieved, on track in next few weeks to reach target no 4 and over the course of the next year the year end exit is for 20,000+ bopd.

12,500 bopd on $60-$65/b oil = $33.50 - $38.50/b net backs.
That's $152m - $175m of net back. (At 20,000 bopd = $244m - $280m).
Also have $310m to offset against future taxation.

From the last conference call CEO stated - "turn this into a cashflow machine for years to come". '

Production for 2019 -
Q1 944 bopd.
Q2 3100 bopd.
Q3 4760 bopd
Q4 8,000 bopd estimate.
Total 2019 = approx 4200 bopd.

Todays maiden dividend announcement represents 4% yield on the 15p placing price or 2.4% at 25p range now. Significantly the interim dividend only amounts to circa $870,000 US with a total div around $5.5m and are average bopd for 2019 is about 4,200 bopd.

With 20,000 bopd expected/target in the next 12 months and "a cashflow machine for years to come" ie a future $25m (2.6p) in divs is only a fraction of the above net backs even if the oil price was sub $50/b.

Broker targets were over 50p which if targets/performance being met, i expect to be substantially increased. Malcy had 80p and i definitely see north of 60p.

Definitely a stock with opportunity for both significant capital growth, growing dividends with significant exploration upside and farmin/acquisition opportunities from cashflow.

Divi announced.Hopefully the start of a rising one as the free cash increases