(Alliance News) - PetroTal Corp on Monday said it has completed its first horizontal well, spud a developmental well, and achieved new record production at the Bretana oil field in Block 95, Peru.
PetroTal has successfully completed the 4H well, the company's first horizontal well in the Bretana oil field. Initial production from the well during the first four days of production was 6,200 barrels of oil per day, which exceeded management expectations.
The well was drilled under budget by approximately USD3.0 million, which will expedite payout of the well.
PetroTal also said it has spud the 5H well, which will be its second horizontal well. Production from this is expected to help the company achieve a targeted exit rate of 10,000 barrels of oil per day at the year-end.
The company produced approximately 4,800 barrels of oil per day in the third quarter. Recently, Bretana reached new record production of over 8,000 barrels per day, with three of five wells online, the company said.
"Our drilling campaign continues to yield excellent results. The strong initial production from the 4H well validates our development plan. Our first horizontal well completion will provide significant data and the AICD valve will bring more oil into the wellbore," said President & Chief Executive Manolo Zuniga.
"Our team is doing an outstanding job in its drilling and capital discipline. As a result, we asked the board for additional capital to continue our development drilling program and make facility upgrades to sustain oil production of over 10,000 Bopd. This additional capital will allow the company to reach free cash flow generation faster and see our future drilling campaign funded from cash flow," Zuniga said.
Shares in PetroTal closed up 9.5% at 17.25 pence in London on Monday.
By Lucy Heming; lucyheming@alliancenews.com
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PetroTal (PTAL)