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(Sharecast News) - Oil explorer and producer PetroTal reported a significant increase in its average production and sales of oil per day in its first quarter on Tuesday.
The AIM-traded firm said average daily production and sales totalled 12,193 and 12,618 barrels, respectively, representing increases of 17% and 21% from the fourth quarter of 2022.
In March, PetroTal achieved a Brazilian export route sales record of 606,521 barrels, or 19,565 barrels of oil per day, and when combined with sales to the Iquitos refinery, the company delivered record total sales of 666,515 barrels, or 21,500 barrels of oil per day.
The company completed well 14H on 27 March, and similarly to well 12H, it had been producing at a constrained rate of about 3,000 barrels per day over the week ended 24 April, and was continuing to produce as expected.
PetroTal started drilling well 15H on 11 April, which was expected to cost about $14m and estimated to be completed in mid-June.
The well would reach a total measured depth of 4,550 metres, with the lateral section expected to be 1,100 metres.
PetroTal reported a strong liquidity position at the end of the first quarter, with around $56m of unrestricted cash and $15m of restricted cash, totaling $71m.
The board said the restricted cash included amounts reserved for social trust funds, to be deposited at a later date.
Its strong cash position supported the recently-announced shareholder return programme, with a 1.5 US cents-per-share quarterly eligible dividend to be paid in June and a normal course issuer bid buyback programme to start in the second quarter, subject to approval from the Toronto Stock Exchange.
PetroTal's working capital as at 31 March was strong, with accounts receivable of $93m being contractually current, and accounts payable of $60m, primarily due within the next 50 days.
"We are extremely happy with our recent production and sales volumes that are exported via Brazil and to the Iquitos refinery, having set a monthly sales record of almost 670,000 barrels in one month to those locations," said president and chief executive officer Manuel Pablo Zuniga-Pflucker.
"We hope to carry this momentum throughout the remainder of the year, having already recovered 97% of the constrained first quarter volumes in April, and meet current 2023 full-year expectations.
"Our commitment is to look for other export routes, including the ONP, with the aim of reaching our previous production record of 26,000 barrels of oil per day in the near term."
At 1311 BST, shares in PetroTal Corporation were up 3.3% in London, at 47p.
Reporting by Josh White for Sharecast.com.
