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(Alliance News) - PetroTal Corp on Wednesday said it is exploring the possibility of drilling another line of wells, after successful testing at the Bretana oil field.
The Alberta, Canada-based oil and gas company, which is focused on the development of oil assets in Peru, said well 12H had tested naturally, off pump, at 2,900 barrels of oil per day over its first ten days of production.
Current well production has increased to 3,650 barrels as at December 27, indicating that well continues to clean out completion fluid.
With the field currently producing at approximately 20,000 barrels, limited by export capacity, the technical team has delayed starting the already installed electro-submersible pump on the well.
PetroTal said this was to gather data under natural flow conditions and to prevent production constraints on other wells.
Once the ESP is activated, the well is expected to produce similarly to its neighbouring well, 13H, which averaged 6,451 barrels during its first 30 days online.
PetroTal also argued that well 12H has confirmed the possibility of drilling another line of wells south of 12H and 13H.
Looking ahead, the total cost of the 12H well is now estimated at USD15.2 million, slightly higher than budget due to directional drilling tool complications.
In other news, PetroTal announced that on December 20, it received board approval to incorporate the 2.5% social trust addendum into the Block 95 licence contract.
The trust represents 2.5% of production from the licence and is designed to create long standing alignment between communities and government. PetroTal said the trust's funds will go towards developing community projects that will have a "significant positive impact" near the Bretana oil field.
Formed off the back of ongoing protests, the social trust is a proposition offered by PetroTal in response to direct action by Asociacion Indigena de Desarrollo y Conservacion de Bajo Puinahua, otherwise known as Aidecobap.
The indigenous rights group has been protesting the Peruvian government via a blockade of PetroTal's loading dock for over a year, on the basis of its prosecution of protesting rights, and the allocation of a Basic Needs Trust capital to close social gaps in Peru.
Last week, Petroperu's board also approved the social trust addendum.
Petroperu is a state company, responsible for promoting, negotiating, underwriting and monitoring contracts for exploration and exploitation of hydrocarbons in Peru.
The proposed addendum will now be sent for approval from the Ministry of Energy & Mines, as well as the Economy & Finance Ministry, before the Peruvian president can authorising Petroperu to amend the contract.
PetroTal expects this process to complete by the end of the second quarter in 2023.
PetroTal will continue to set aside funds in a separate bank account as per the agreed social trust addenda.
The company has averaged approximately 20,000 barrels of oil per day since December 16, 2022, with an estimated production capacity of over 24,000 bopd.
With export capacity now re-established, most of the Brazilian barges are now arriving in Bretana, allowing increased production. Once filled, they will travel to Manaus, Brazil to unload.
PetroTal shares were trading 4.1% higher at 41.31 pence each in London on Wednesday morning.
By Holly Beveridge; Alliance News reporter
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