Malcy's RNS comment..11 Feb 2022 11:49
...apologies if already seen... 75p expected?
PetroTal Corp
PetroTal has announced the Company’s well 10H, which commenced production on January 30, 2022, has set a new internal daily production record with an average standalone 10 day production level of 10,050 bopd.
Well 10H on Production
· Well 10H has produced an average of 10,050 bopd over the last ten days ending February 9, 2022, with the latest reported rate at 10,122 bopd;
· The well’s final cost was $11.5 million, 17% under budget, and came onstream on schedule and has already paid out over 45% of its total well cost at $90/bbl Brent;
· 10H represents the longest horizontal well drilled to date in Peru;
· With the help of 10H and PetroTal’s robust well portfolio, the Company set a new daily record production level of 20,891 bopd on February 1, 2022 surpassing the mark set in mid December 2021 when 9H was brought onstream; and,
· With the Company’s central processing facility (“CPF-2”) fully commissioned, the Company is awaiting final ministry approval expected around February 15, 2022, to be able to operate to its maximum capacity of approximately 24,000 bopd to 26,000 bopd, from current constrained production of around 20,000 bopd.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented
“We have set additional production records with 10H’s early production rates. We are extremely pleased from a technical standpoint at what this could mean for the future performance of PetroTal’s drilling inventory and are pleased to deliver a strong start to 2022 for shareholders.”
These numbers speak for themselves and I can easily see PTAL cruising past previous expectations as to its own capacity targets. Assuming ministry approval and thus achieving higher CPF-2 capacity I can see the 20,000 b/d target being achieved, and sooner and probably for longer than is in existing forecasts.
This not only applies to production but reserves and cash flow and accordingly my existing target price of 60p looks too conservative and based on what I expect the company to rubber stamp in the way of increased targets I am increasing that price expectation to 75p
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