(Alliance News) - PetroTal Corp on Thursday reported record production in Peru but also was forced to clarify its cash position.
The stock was 15% lower on Tuesday afternoon in London at 21.36 pence per share.
In October, PetroTal had reported a cash and cash equivalent amount of around USD40 million, but clarified Tuesday the figure was actually USD20.5 million. The company's total current assets, which includes items such as inventory, totalled USD41.7 million as of the end of September. It said the non-cash assets were mistakenly booked as cash.
Turning to operations, oil production from the Bretana field in Peru in the three months to September rose 58% on the second three months of the year to 4,760 barrels per day. Production over the past 30 days has averaged over 8,500 barrels, the firm added, with all five wells now online.
Calgary-based PetroTal is to begin commissioning a central production facility at the field in December, which will increase full field production capacity to more than 10,000 barrels per day. Then, it will carry out phase two of the production facility's development, doubling capacity.
The rise in output helped revenue surge in the quarter to USD19.7 million from USD4.3 million a year prior. Net income was USD3.0 million, up from USD507,000 a year prior.
"PetroTal's focus on the Bretana oilfield development in the third quarter represented a balanced approach between drilling and facility enhancement. The company is well positioned to handle continued success from its drilling program," said Chief Executive Manolo Zuniga.
"The strong performance of the 4H well demonstrates the potential of horizontal wells in this area and the benefits of using the latest engineering technology."
"I congratulate the PetroTal team on all their collaborative efforts as we achieve record production levels. Innovation and optimization in all our operations is an important element to continued success. I also thank our shareholders for your continued support and confidence," he continued.
By George Collard; georgecollard@alliancenews.com
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PetroTal (PTAL)