PetroTal Delivers Robust Q2 2024 Results, Boosts Production Outlook

PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF), a leading oil and gas development and production company in Peru, has reported its impressive operating and financial results for the second quarter of 2024. The company's strong performance, driven by increased production, favorable oil pricing, and strategic initiatives, positions it for continued success in the coming quarters.

Unlocking Value Through Operational Excellence and Strategic Initiatives

Robust Production and Sales Figures

PetroTal's average production and sales in Q2 2024 reached 18,290 and 18,050 barrels of oil per day (bopd), respectively, despite a brief river blockade. This represents a significant increase compared to the same period in the previous year, showcasing the company's ability to maintain consistent and reliable operations.

Impressive Financial Performance

The company's financial results for the quarter were equally impressive, with Q2 2024 EBITDA of .5 million (.31/bbl) and free funds flow of .3 million (.11/bbl). PetroTal's strong cash position, with .9 million in total cash and over .2 million in current receivables, provides a solid foundation for future growth and development.

Diversifying Oil Sales Routes

PetroTal made significant progress in diversifying its oil sales routes during the quarter, completing all regulatory approvals for the Oleoducto de Crudos Pesados Oil Pipeline (OCP) route to market in Ecuador. This strategic move will allow the company to further optimize its oil sales and enhance its market flexibility, particularly during the dry season.

Acquisition of Block 131

The company's acquisition of a 100% working interest in Peru's Block 131, including the producing Los Angeles field, is a key milestone that will diversify PetroTal's production profile and increase its light oil output in 2025. The million acquisition, subject to closing adjustments, is expected to close later this year.

Operational Efficiency and Cost Management

PetroTal's operational efficiency is reflected in its strong cost metrics, with lifting and variable transportation costs under .00/bbl in the quarter, generating a near 78% net operating income margin. The company's focus on cost control and operational optimization has been a key driver of its financial performance.

Shareholder Returns and Capital Allocation

PetroTal's commitment to shareholder value is evident in its capital allocation strategy, which includes paying a {{royaItemContent}}.015 per share dividend in Q3 2024 and repurchasing 1.2 million common shares in Q2 2024, representing approximately million of total capital returned to shareholders.

Strengthening the Leadership Team

The company's management team has been further strengthened with the addition of experienced industry professionals, positioning PetroTal for continued success in the years ahead. The board of directors has also undergone changes, with the resignation of Dr. Roger Tucker, who has made significant contributions to the company's technical and operational achievements.

Outlook and Guidance

PetroTal has reaffirmed its production guidance for 2024, with expected output of 16,500 to 17,500 bopd. The company has also increased its EBITDA guidance for the full year to a range of 0 to 0 million, reflecting its strong operational and financial performance.In conclusion, PetroTal's robust Q2 2024 results, coupled with its strategic initiatives and operational excellence, position the company for continued growth and success in the Peruvian oil and gas market. The company's focus on diversifying its sales routes, optimizing production, and delivering shareholder value underscores its commitment to creating long-term value for its stakeholders.