Member Info for surprised

https://twitter.com/surprised_trade/status/1564866711345680384

large upgrade on broker targets to 345p fair value providing very decent further upside as growth, earnings, etc. continue

https://www.thetimes.co.uk/article/bango-buys-payments-arm-of-japanese-mobile-giant-395qg7kdz

As expected, Russian natural gas flows into Europe via the key Nord Stream 1 pipeline stopped completely this morning. Gazprom has said the "maintenance" will last 3 days.

https://twitter.com/JavierBlas/status/1564861452535713799

too many positives to list in results & key metric supporting the current under valuation is the cash forecast by broker expected to be 90% of current mcap, expect challenge on year high of 62p+ over coming sessions, broker target 130p provides a clue to upside

https://twitter.com/surprised_trade/status/1564322662394077191

https://twitter.com/surprised_trade/status/1564509270095323137

broker note out and target raised to 345p from 260p

https://twitter.com/surprised_trade/status/1564497810619305984

.Acquisition is €4M, funded using existing Bango cash. At completion, DOCOMO Digital had a cash balance of €3.1M.Revenue contribution from the Acquisition is expected to be $5M in FY2022 and $16M in FY2023

Rush to drill for more oil in North Sea

Liz Truss will give licences the green light....

Liz Truss will approve a series of oil and gas drilling licences in the North Sea in one of her first acts as prime minister as part of a long-term plan to ensure Britain’s energy security.

https://www.thetimes.co.uk/article/tories-rush-to-drill-for-more-oil-in-north-sea-mtstjhv0d

https://twitter.com/surprised_trade/status/1562823420496056320

expect a challenge on year high of 62p+ over coming sessions and broker target of 130p provides a clue to upside based on todays excellent figures

Malcy's blog update ...

PetroTal delivered solid Q2 2022 financial and operational performance highlighted by record production rates, record cash flow, and a robust balance sheet profile with a substantial net cash position.

PetroTal has had another excellent quarter, with production of 14,467 it has ticked a number of other boxes as well such as cash flow, leading to a ‘robust’ balance sheet and a substantial cash position.

New wells remain extremely profitable, the most recent, 11H, has already paid back its capital and although there is a short hiatus they will resume in Q4. Also worth mentioning is that whilst the ONP was offline 456/- barrels were placed through the Brazilian route which also happened to reduce costs.

The company are clearly in very good shape, long term it looks like wells will continue to build the stock and repay very quickly, .... the upside is still huge. At 48.5p the shares are still below the recent peak but still offer significant value.

Back in July I increased my TP to 125p, I have no reason to change that number at the moment.

https://www.malcysblog.com/2022/08/oil-price-petrotal-iog-zephyr-angus-hunting-eco-and-finally/

PetroTal will host an investor webcast on August 25, 2022 at 3:00 pm BST, following release of the Q2 2022 results. The Company has also provided an updated corporate presentation inclusive of the Q2 2022 results, on its website.

Link to PetroTal Q2 2022 webcast

https://stream.brrmedia.co.uk/broadcast/62e8f64f04182f363ba99aa2

PetroTal's 2021 AGM will be held virtually on September 15, 2022.

part copy of just released broker report ..

Cash up by US$40 mm in just 45 days.

n early 3Q22, the company encountered barging, resulting in oil production being constrained to 5.7 mbbl/d from July 7 until July 25. PetroTal has secured approximately 420,000 bbl of export barging capacity for August plus 60,000 bbl for the Iquitos Refinery which has allowed production to increase to 19,000 bbl/d since August.

The fact that, even in this context, PetroTal’s cash position increased from US$77 mm as at the end of June (and ~US$50 mm at YE21) to ~US$115 mm as at August 15 is testimony to the free cashflow generative nature of the business. Note that this cash position excludes ~US$59 mm outstanding from Petroperu (expected to be received in 2023)

two new wells expected to be completed in 4Q22

We forecast that YE23 net cash will represent 90% of the current market cap.

The shares continue to offer deep value and growth. We re-iterate our target price of £1.30 per share

too many positives to list :-)

Record revenue. Oil revenue was $118.4 million ($89.04/bbl) compared to Q2 2021 of $42.8 million ($53.20/bbl) and Q1 2022 of $92.7 million ($66.41/bbl).

Record net operating income. Generated record NOI and EBITDA(a) of $98.6 million ($74.13/bbl) and $93.4 million ($70.26/bbl), respectively, compared to $29.7 million ($36.88/bbl) and $26.4 million ($32.87/bbl), respectively, in Q2 2021 and $64.2 million ($45.96/bbl) and $58.7 million ($42.58/bbl), respectively, in Q1 2022.

Capital investment. Capital expenditures in the quarter totalled $24.0 million and were focused on drilling and completing well 11H and advancing infrastructure projects. The total represented approximately 88% of the budget, due to deferral of drilling activity as a result of the social protest activity in March 2022, and deferral of additional facility and water disposal work until 2023. First half 2022 capital expenditures are $41.6 million, trending well under the $70.0 million approved budget.

Record Q2 and YTD 2022 free cash flow. Generated record free cash flow(a) before changes in non-cash working capital and debt service of $69.4 million. Total free cash flow for the six months ended June 30, 2022 has surpassed $100 million, significantly boosting the Company's liquidity profile.

Lower operating costs. Total quarterly lifting costs were $8.4 million ($6.28/bbl), a decrease from Q1 2022 of $10.1 million ($7.20/bbl) and from Q2 2021 of $5.5 million ($6.84/bbl), driven by lower contracted operations and COVID 19 expenses.

Record low transportation costs. Diluent and barging costs were $3.4 million ($2.54/bbl) in the quarter, reduced significantly from $12.1 million ($8.68/bbl) in Q2 2022, and down from $5.3 million ($6.61/bbl) in Q2 2021. The decrease was supported by lower barging standby time, and significantly lower diluent and diesel costs from shipping through the Brazil and Iquitos routes instead of incurring ONP costs.

G&A on budget. Q2 2022 G&A was $5.1 million ($3.87/bbl) compared to $4.7 million ($3.38/bbl) in Q1 2022 and $3.2 million ($4.01/bbl) in Q2 2021 representing a 15% and 3% increase and decrease, respectively, on a per barrel basis.

Record net income. Net income was $84.2 million an increase of 31% over Q1 2022 of $64.5 million and significantly exceeding $11.4 million in Q2 2021.

Balance sheet reflects a record net debt/(surplus) position. Net debt/(surplus) was approximately ($79) million as at June 30, 2022, as defined internally by the Company.

Large net derivative asset balance. The total net derivative asset on the balance sheet as at June 30, 2022 was $56.8 million, consisting mostly of the true up value of oil in the ONP. As at June 30, 2022 approximately 3.1 million barrels remained in the ONP backstopping the net derivative value with a much lower cost base from sales made in 2020 and 2021. With the ONP maintenance estimated to be completed in October 2022

part copy of just released broker report ..

Cash up by US$40 mm in just 45 days.

n early 3Q22, the company encountered barging, resulting in oil production being constrained to 5.7 mbbl/d from July 7 until July 25. PetroTal has secured approximately 420,000 bbl of export barging capacity for August plus 60,000 bbl for the Iquitos Refinery which has allowed production to increase to 19,000 bbl/d since August.

The fact that, even in this context, PetroTal’s cash position increased from US$77 mm as at the end of June (and ~US$50 mm at YE21) to ~US$115 mm as at August 15 is testimony to the free cashflow generative nature of the business. Note that this cash position excludes ~US$59 mm outstanding from Petroperu (expected to be received in 2023)

two new wells expected to be completed in 4Q22

We forecast that YE23 net cash will represent 90% of the current market cap.

The shares continue to offer deep value and growth. We re-iterate our target price of £1.30 per share

broker note just out confirming all positives an reiterating 130p sp target price with the additional note that they forecast that YE23 net cash will represent 90 percent of the current market cap. ....stunning and provides the figures and facts that PTAL at these current levels (44p) is simply overwhelmingly undervalued :-)

https://twitter.com/surprised_trade/status/1562689929242501123

simply excellent results and outlook ...too many positives to list ....broker target 130p

too many positives to list :-)

Record revenue. Oil revenue was $118.4 million ($89.04/bbl) compared to Q2 2021 of $42.8 million ($53.20/bbl) and Q1 2022 of $92.7 million ($66.41/bbl).

Record net operating income. Generated record NOI and EBITDA(a) of $98.6 million ($74.13/bbl) and $93.4 million ($70.26/bbl), respectively, compared to $29.7 million ($36.88/bbl) and $26.4 million ($32.87/bbl), respectively, in Q2 2021 and $64.2 million ($45.96/bbl) and $58.7 million ($42.58/bbl), respectively, in Q1 2022.

Capital investment. Capital expenditures in the quarter totalled $24.0 million and were focused on drilling and completing well 11H and advancing infrastructure projects. The total represented approximately 88% of the budget, due to deferral of drilling activity as a result of the social protest activity in March 2022, and deferral of additional facility and water disposal work until 2023. First half 2022 capital expenditures are $41.6 million, trending well under the $70.0 million approved budget.

Record Q2 and YTD 2022 free cash flow. Generated record free cash flow(a) before changes in non-cash working capital and debt service of $69.4 million. Total free cash flow for the six months ended June 30, 2022 has surpassed $100 million, significantly boosting the Company's liquidity profile.

Lower operating costs. Total quarterly lifting costs were $8.4 million ($6.28/bbl), a decrease from Q1 2022 of $10.1 million ($7.20/bbl) and from Q2 2021 of $5.5 million ($6.84/bbl), driven by lower contracted operations and COVID 19 expenses.

Record low transportation costs. Diluent and barging costs were $3.4 million ($2.54/bbl) in the quarter, reduced significantly from $12.1 million ($8.68/bbl) in Q2 2022, and down from $5.3 million ($6.61/bbl) in Q2 2021. The decrease was supported by lower barging standby time, and significantly lower diluent and diesel costs from shipping through the Brazil and Iquitos routes instead of incurring ONP costs.

G&A on budget. Q2 2022 G&A was $5.1 million ($3.87/bbl) compared to $4.7 million ($3.38/bbl) in Q1 2022 and $3.2 million ($4.01/bbl) in Q2 2021 representing a 15% and 3% increase and decrease, respectively, on a per barrel basis.

Record net income. Net income was $84.2 million an increase of 31% over Q1 2022 of $64.5 million and significantly exceeding $11.4 million in Q2 2021.

Balance sheet reflects a record net debt/(surplus) position. Net debt/(surplus) was approximately ($79) million as at June 30, 2022, as defined internally by the Company.

Large net derivative asset balance. The total net derivative asset on the balance sheet as at June 30, 2022 was $56.8 million, consisting mostly of the true up value of oil in the ONP. As at June 30, 2022 approximately 3.1 million barrels remained in the ONP backstopping the net derivative value with a much lower cost base from sales made in 2020 and 2021. With the ONP maintenance estimated to be completed in October 2022

https://twitter.com/surprised_trade/status/1562687948948008960

rns - simply excellent results and outlook ...too may positives to list ??....broker target 130p

· Achieved record quarterly production of 14,467 barrels of oil per day ("bopd") and quarterly sales of 14,616 bopd, up 25% and down 5%, respectively, from Q1 2022, representing the Company's seventh straight quarter of production growth, with unencumbered sales for the majority of the quarter;

· Completed well 11H on June 30, 2022, which produced over 300,000 barrels of oil over its first 30 full days on production, has paid out its capital investment, and averaged over 9,000 bopd from August 1 to 22, 2022;

· Achieved a new daily Company production record of 25,218 bopd on July 1, 2022 with production briefly reaching 26,000 bopd, representing the maximum capacity at the newly expanded Central Processing Facility ("CPF-2");

· Sold approximately 86% of sales through the Brazilian route with the remaining 14% sold to the Iquitos Refinery while the Northern Peruvian Oil Pipeline ("ONP") was offline, successfully redirecting 456,000 barrels from the ONP to the Brazilian market;

· Significantly reduced transportation costs through significantly reduced diluent blending requirements to Brazil, contributing to record low transportation costs of $3.4 million ($2.54/bbl);

· Generated record net operating income ("NOI") and EBITDA(a) of $98.6 million and $93.4 million, respectively, both up three and a half fold from Q2 2021 levels and almost double from Q1 2022;

· Generated record free cash flow(a) of $69.4 million before changes in non-cash working capital and debt service, accumulating over $100 million, for the six months ended June 30, 2022;

· Invested approximately $24.0 million in capital expenditures ("Capex"), lower than revised guidance by $5 million, due to drilling delays from the March 2022 social protests. Approximately two thirds of Capex spent was for drilling and completion related investments with the remainder divided amongst smaller production operation projects;

· On April 1, 2022, the Company paid $20 million of principal to bondholders through the 101% call option mechanism set out in the bond agreement. As of June 30, 2022 and August 25, 2022, the Company is in compliance with all covenants; with $80 million of bond principal remaining; and,

· Exited the quarter with $77 million of total cash, including $13.5 million of restricted cash, and approximately ($79) million in net debt/(surplus)(1), a record level for the Company allowing for a future return of capital program in Q4 2022 or Q1 2023, with an extremely solid balance sheet profile.

Broker note 5.7.22

''High production and cash. Another good well result.

Increasing production guidance. • 2Q22 production was ~14.5 mbbl/d. This is above the guidance of ~13.5 mbbl/d and our forecast of ~13 mbbl/d.

Total cash at the end of June was ~US$77 mm, including US$16.2 mm of restricted cash. Estimated accounts receivable and accounts payable at the quarter end were respectively ~US$88 mm (including ~US$54 mm of trueup revenue expected to be received in August) and US$50 mm. The cash position is well above our expectations of ~US$40 mm

Valuation
We continue to cautiously forecast only 16 mbbl/d production in 3Q22; which suggests some potential upside to our numbers.
We forecast that YE23 net cash will represent 80% of the current market cap.

The shares continue to offer deep value and growth.

We are increasing our target price from £1.20 per share to £1.30 per share as we incorporate the increased production and strong financial position''

With brent at current prices PTAL are literally printing money even with restricted production ...guidance may or may not be hit (it's guidance) however, even a short fall on the guidance will still see massive cash flow for a company of this size with even further upside ahead when flows are operating at full steam .

With brent at current prices PTAL are literally printing money even with restricted production ...guidance may or may not be hit (it's guidance) however, even a short fall on the guidance will still see massive cash flow for a company of this size with even further upside ahead when flows are operating at full steam .

it could go a whole lot higher yet on this breaking news ....

Saudi Arabia talks about "cutting production" with Brent crude oil (paper market) hovering around $95 a barrel

https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=2378353#2378353

https://twitter.com/surprised_trade/status/1561747835053301760