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(Sharecast News) - Canadian oil and gas explorer PetroTal reported average annual production and sales of 12,200 and 13,168 barrels of oil per day, respectively, in its 2022 results on Thursday, up 36% and 56% from 2021.
The AIM-traded firm said it delivered a 46% increase in 2P reserves value to $1.75, CAD 2.29, and £1.45 per share, and a 24% increase in 2P reserves to 96.8 million barrels.
It provided strong year-end 1P and 2P reserve replacement ratios of 179% and 418%, respectively, and noted that it set a record for daily production of over 26,000 barrels on 30 June, confirming the current facility oil handling capacity.
The company drilled and completed four highly productive horizontal oil wells during the year, with wells 10H and 11H delivering initial production rates in excess of 10,000 barrels of oil per day.
During well 13H's drilling, the technical team encountered the target producing formation around three metres higher than prognosis, contributing to oil-in-place and reserves upgrades in its year-end reserve report.
PetroTal said it generated record annual net operating income of $274m, or $56.90 per barrel, and adjusted EBITDA including realised derivative impacts of $256m, or $53.28 per barrel.
The firm's 2022 free funds flow totalled $161.9m, before working capital adjustments and debt service, and after $94.2m total capital expenditures.
That equated to a 38% free funds flow yield using its 31 December market capitalisation, and was about $33.66 per barrel.
The company said it exited 2022 with around $120m in cash, of which $15.6m was restricted, and a $74m net surplus on the balance sheet, allowing for a full bond repayment after year-end.
"I am proud of our performance in 2022 - a year in which the company was resilient despite facing a number of challenges," said president and chief executive officer Manuel Pablo Zuniga-Pflucker.
"We are pleased with 2022's operational and financial results, having significantly improved the operating stability of the company in recent months from both a sales and balance sheet perspective."
Zuniga-Pflucker added that it was equally important that PetroTal fulfilled its promise to investors to fully repay its bonds, and initiating a return of capital programme to its "patient and deserving" shareholder group.
"In closing, I would like to thank our shareholders for their continued support, the PetroTal team for their considerable contributions to the company, and our board for strategic guidance."
At 1313 BST, shares in PetroTal were up 12.66% at 44.5p.
Reporting by Josh White for Sharecast.com.
