PetroTal (LSE:TAL) reported average group production of 13,181 barrels per day for the year to date, approximately 3% above budget, while also securing revised royalty terms for incremental production at its Los Angeles field in Peru.
Group production averaged 11,709 barrels per day in August, with output primarily coming from the Bretana field.
At Bretana, PetroTal completed a pulling campaign and workovers involving five wells. The programme included replacing pumps and tubing and increasing water injection capacity.
The company plans to resume development drilling in October, with the Estrella drilling rig already at the site.
In Block 131, PetroTal secured a revised price-linked royalty structure covering incremental production from the Los Angeles field. Royalty rates for production from deeper formations will be capped at 5%.
As part of the revised arrangements, PetroTal will increase its contributions to the social fund and has committed to drilling two wells within two years.
Separately, the company is retendering its erosion control project at Bretana after ending its arrangement with the previous contractor. PetroTal is continuing interim remediation work while preparing to restart construction under a new contract.
The company has also updated its corporate presentation ahead of investor meetings in London.
More about PetroTal Corp
PetroTal Corp. is a Calgary-domiciled oil and gas development and production company with listings including LSE:TAL. Its operations are focused on onshore crude oil assets in Peru.
The company’s principal producing asset is the Bretana Norte oil field in Block 95. PetroTal also operates the Los Angeles field in Block 131.
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