PetroTal Corp. (LSE:TAL) has published its 2026 budget and outlook, outlining a transition year that prioritises liquidity protection, tighter cost control and operational stability rather than near-term production growth. The board has approved capital expenditure of $80–90 million, targeting average production of 11,750–12,250 barrels of oil per day in 2026 while maintaining a minimum of $60 million in unrestricted cash.
The programme allocates around $45 million to drill two development wells at the Bretaña Norte oil field by the end of the year, alongside material spending on erosion control and critical infrastructure. As part of its cost and risk management strategy, PetroTal plans to transition to a third-party drilling contractor and exit its Amazonia-1 rig lease, a move intended to reduce scheduling risk and better align costs with a lower level of activity. At a Brent oil price of $60, the company expects adjusted EBITDA of roughly $30 million, supported by reductions in operating expenditure and G&A.
All Bretaña crude will be marketed via the Brazil export route during the period, while the company works toward restoring production capacity to above 20,000 barrels per day from 2027. Future investments in water handling and infrastructure expansion are expected to be funded from internally generated cash flow, reinforcing management’s emphasis on balance sheet resilience ahead of the next growth phase.
More about PetroTal Corp
PetroTal Corp. is a publicly listed oil and gas development and production company headquartered in Calgary and Houston, with a sole focus on Peruvian oil assets. Its core operation is a 100% working interest in the Bretaña Norte field in Block 95, where production began in 2018 and which has since become Peru’s largest crude oil producing asset. The company is led by a management team with deep experience in the Peruvian energy sector and places strong emphasis on cost-efficient development and responsible, community-focused operations.
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