(Sharecast News) - PetroTal said in an update on Wednesday that in the fourth quarter, it achieved an average daily production of 14,865 barrels of oil per day, with a yearly total of 14,248 daily barrels.
The AIM-traded firm said that in December, production surged to 20,090 barrels per day due to improved river levels resulting from the rainy season's return, helping the company meet its fourth quarter and 2023 production guidance range of 14,000 to 15,000 daily barrels.
It said the installation of the L2 West Platform had been completed, allowing it to drill its first horizontal well 16H, which was expected to start production by mid-January.
The board said the 16H well was expected to maintain production levels above 20,000 barrels per day, thanks to enhanced oil export barge fleet capacity exceeding 1.6 million barrels.
It said the capacity increase, coupled with streamlined discharge operations in Brazil, would mitigate production bottlenecks experienced in the first quarter.
PetroTal added that it was actively pursuing authorisation to use the most suitable port in Ecuador for oil exports from Bretana via the OCP pipeline.
Collaborating with Ecuador's primary transportation company OCP and various government energy entities, the company said it was confident in securing authorisation for future recurring sales to the OCP by mid to late 2024.
As at 31 December, PetroTal had about $90m in unrestricted cash and $21m in restricted cash, totalling $111m.
The restricted cash included reserves for social trust funds.
Its board said such a cash position allowed PetroTal to consider returning capital to shareholders through regular dividends, special dividends, and share buybacks, subject to board approval.
During the fourth quarter, the firm repurchased 5.1 million shares at an average price of 58 cents per share, and paid $18.4m, or two cents per share, in dividends related to third quarter operations.
Accounts receivable stood at $70m, with accounts payable of $68m, primarily due within the next 50 days.
Finally, the company said its vice president of exploration and development, Dewi Jones, would retire from PetroTal on 18 January after serving in the role since 1 March 2021.
PetroTal said it would reallocate his duties internally without seeking a replacement.
Jose Contreras, senior vice-president of operations, would assume all responsibilities for Bretana's development.
Additionally, PetroTal said it had re-engaged Estuardo Alvarez-Calderon in a consulting capacity to coordinate exploration aspects.
Alvarez-Calderon was a founding partner of PetroTal, and previously served as vice-president of exploration and development from 2017 until his retirement in 2021.
"The company expects to have a strong oil sales profile while river levels are high," said chief executive officer Manuel Pablo Zuniga-Pflucker.
"With well 16H commencing production in January, the company hopes to produce over 20,000 barrels of oil per day for the foreseeable future as we have expanded our export barging fleet to over 1.6 million barrels, and we continue to expand into other sales markets.
"We are excited to be starting 2024 at this production level and will be announcing our 2024 plans very shortly."
Zuniga-Pflucker said PetroTal remained in a strong financial position with no long-term debt.
"With $90m unrestricted cash and $21m of restricted cash, we will continue with our plans to return capital to investors via dividends and share buybacks for the foreseeable future.
"I wish to thank Dewi Jones for his contribution to PetroTal's successful growth and wish him well in his retirement, and welcome back Estuardo Alvarez-Calderon who will be leading our exploration efforts."
At 1145 GMT, shares in PetroTal were up 1.61% at 47.25p.
Reporting by Josh White for Sharecast.com.
PetroTal (PTAL)