(Alliance News) - Shares in PetroTal Corp rose on Monday as it reported the completion of drilling at its second horizontal well on the Bretana field, Peru, leading to an increased year-end production guidance.
Shares in the oil & gas firm - which is headquartered in Calgary, Canada - were 16% higher at 24.40 pence on Monday in London.
The 5H well reached the target Vivian formation at the prognosed vertical depth of 2,696 metres, PetroTal said, and 700 metres of the planned 870 metres horizontal section have been drilled, which is inside the main productive oil reservoir.
The well tie-in and initial production tests are expected to take place on or before December 15. In addition, PetroTal is set to commission the central production facilities the week after, increasing the nominal production facility to 10,000 barrels of oil per day and 40,000 barrels of water per day.
Based on recent field production experience of production 8,000 barrels of oil per day with a facility having 5,000 bopd nominal capacity, PetroTal expects its central production facilities to be able to handle the order of 15,000 barrels per day.
Based on this expectations, and that of the second well performing similarly to the first 4H well on the field, PetroTal has increased its production guidance for the end of 2019 to 11,000 to 13,000 bopd, up from 10,000 bopd.
"We set ourselves an ambitious target of achieving 10,000 bopd by year-end 2019, so to exceed this is of great testament to the team we have assembled. I would like to congratulate our operations and drilling team for executing at an extremely high level since we started operations two years ago, and showcasing that we can handle more oil than the equipment's nominal capacity which is now allowing us to forecast higher 2019 exit oil rates and, importantly, a strong production base as we enter 2020," said Chief Executive Manolo Zuniga.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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PetroTal (PTAL)