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(Alliance News) - Shares in PetroTal Corp on Monday rose as the company announced an end to protests at one of its pump stations and said it was going to ramp up production.
Shares in the oil and gas company were up 13% at 20.12 pence each on Monday midday in London.
The Texas-based company said ONP pipeline protests in Saramuro, Peru near pump station number one came to an end. It explained that its recently announced social initiatives contributed to the peaceful resolution.
PetroTal noted that protests near its PS5 station were only settled with a 30-day truce from December 10.
The company cautioned that if the truce is not achieved the company may need to constrain production by the third week of December.
Furthermore, the company will require normal access to the Petroperu's ONP pipeline route after December to produce unconstrainedly in 2022.
PetroTal currently has approximately 300,000 barrels of oil on barges, of which 135,000 barrels located near pump station number 1 are awaiting Petroperu's ONP pipeline operations to restart.
However, this involves the reopening of pump station number 5. The remaining barrels are heading to the Iquitos refinery or to Brazil, PetroTal said.
Oil loading operations commenced on December 3 and will enable the oil and gas company to ramp up production during the next few days starting with the new 9H horizontal well that was put on production December 5.
Sales to the Iquitos refinery and through the Brazilian export routes will also be recommenced, PetroTal said.
The company is also commissioning additional barges that will allow it to produce unconstrainedly through December 2021.
With flash production from the recently drilled and completed 9H well the oil and gas explorer expects to initially produce over 18,000 barrels of oil per day, although this could likely be constrained to manage storage and offtake capacity.
The 9H was completed December 1, to fill the wellbore with oil and inflate the packers. The initial flow rate achieved as of December 6 was approximately 9,000 barrels of oil per day of flush production.
PetroTal said it will provide the 10 and 30-day average production rates for the 9H well when available.
The company stated that forward liquidity remained strong and is forecast to continue through the first quarter of 2022 with a continuous capital program.
"This simulated forecast assumes conservative field closure conditions for the remainder of 2021, constrained oil field operations, reduced brent prices, and moderate oil sales from currently loaded barges," PetroTal said.
Chief Executive Manuel Pablo Zuniga-Pflucker commented: "We are very pleased to have reached a peaceful settlement with the protesting community near the PetroTal dock. Based on the company's initiatives to promote change and an equalisation of social profits, a sense of confidence and trust was created between our groups."
He added: "We are also seeing the government engaged in achieving a long-term resolution to the ongoing ONP protests at pump stations 1 and 5 which will hopefully lead to a full reopening of the ONP route in the near term."
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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