PetroTal (LSE:TAL) reported average group production of 14,907 barrels of oil per day for the first quarter of 2026, representing a 2% decline from the previous quarter but coming in slightly ahead of internal forecasts. Output was primarily driven by the Bretana field, with additional contribution from the Los Angeles field.
Operations at Bretana continue to face constraints, particularly due to limited water reinjection capacity and scheduled tubing replacement work. The company expects drilling activity to resume by October, contingent on finalising a contract for a third-party rig.
Financially, PetroTal ended the quarter with total cash of $128.1 million, including $104.2 million in unrestricted cash. While this reflects a decrease compared to the end of 2025, it remains higher than the same period last year, supported by strong oil prices in March, which approached $90 per barrel. The company also has hedging arrangements in place covering approximately 0.9 million barrels of production through 2026. These hedges currently carry a negative fair value, reflecting the impact of higher spot prices and creating a short-term mark-to-market headwind, even as they provide protection against future price volatility.
More about PetroTal Corp
PetroTal Corp. is an oil and gas development and production company with headquarters in Calgary and Houston, focused on onshore crude oil operations in Peru. Its key asset is the wholly owned Bretana Norte field in Block 95, complemented by production from the Los Angeles field in Block 131. The company has grown to become Peru’s largest crude oil producer and is focused on delivering efficient, safe operations while maintaining strong engagement with local communities.
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