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(Alliance News) - Shares in PetroTal Corp were up on Tuesday following news of further optimisation of oil production operations, a second shipment of oil through Brazil and the possibility of a new USD100 million bond issue.
PetroTal shares were up 4.8% at 16.25 pence in London on Tuesday morning.
The oil & gas development and production company focused on Peru said it signed an agreement for a second pilot shipment through Brazil in February of up to 220,000 barrels of oil.
"The increased volume of this shipment over the initial pilot export is expected to improve overall economics and lead towards the establishment of regular exports, complementing sales into the Northern Oil Pipeline and to the Iquitos refinery," the company said.
The oil firm announced in December that it completed its first export sale of Bretana oil into the Atlantic region through Brazil. The initial shipment consisted of 106,000 barrels of oil, for which it was paid USD2.7 million.
The first shipment was arranged with Texas, US-based physical oil supply company Novum Energy Trading Corp.
PetroTal said production has increased to 10,025 barrels of oil per day from the 9,500 bopd, announced last Thursday, as the company continues to optimise its operations.
PetroTal additionally announced the possibility of a new USD100 million senior secured three-year bond issue.
The proceeds of the bond issue will be used pay debts of approximately USD16.6 million owed to Petroperu, finance PetroTal's flagship Bretana oil field in northern Peru, and finance potential acquisitions.
If the bond issue is executed, development drilling at Bretana is expected to continue in March.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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