TIDMPTAL
RNS Number : 7516U
PetroTal Corp.
30 March 2023
PetroTal Announces 2022 Year-End Financial and Operating
Results
Delivered annual average production of 12,200 bopd representing
a 36% growth rate over 2021
Increased 2022 2P reserves to 97 million barrels (24%) and after
tax NPV-10 to US$1.75/share (46%)
Established a new record production level of over 26,000
bopd
Generated 2022 free funds flow of $162 million (38% of exit 2022
market capitalization)
Brought four highly productive horizontal oil wells online in
2022 to exit the year with 20,000 bopd
Bonds now fully repaid and return of capital program announced
subsequent to 2022 year-end
Calgary, AB and Houston, TX - March 30, 2023-PetroTal Corp.
("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX:
PTALF) is pleased to report its operating and audited financial
results for the three months ("Q4") and year ended December 31,
2022.
Select financial, reserves and operational information is
outlined below and should be read in conjunction with the Company's
audited consolidated financial statements ("Financial Statements"),
management's discussion and analysis ("MD&A") and annual
information form ("AIF") for the year ended December 31, 2022,
which are available on SEDAR at www.sedar.com and on the Company's
website at www.PetroTal--Corp.com. Reserves numbers presented
herein were derived from an independent reserves report ("NSAI
Report") prepared by Netherland, Sewell & Associates, Inc.
("NSAI") effective December 31, 2022. All amounts herein are in
United States dollars ("USD") unless otherwise stated.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive
Officer, commented:
"I am proud of our performance in 2022, a year in which the
Company was resilient despite facing a number of challenges. We are
pleased with 2022's operational and financial results, having
significantly improved the operating stability of the Company in
recent months from both a sales and balance sheet perspective. In
addition, it was equally important that we fulfilled our promise to
investors to fully repay our bonds and initiating a return of
capital program to our patient and deserving shareholder group.
In closing, I would like to thank our shareholders for their
continued support, the PetroTal team for their considerable
contributions to the Company, and our Board for strategic
guidance."
2022 Key Milestones and Highlights
-- Achieved average annual production and sales of 12,200 and
13,168 barrels of oil per day ("bopd") respectively, up 36% and 56%
from 2021;
-- Delivered a 46% increase in 2P reserves value per share
(NPV-10, after tax) to US$1.75/share (CAD$2.29 and GBP1.45), and a
24% increase in 2P reserves to 96.8 million barrels;
-- Provided strong 2022 year-end 1P and 2P reserve replacement
ratios of 179% and 418%, respectively;
-- Set a record for daily production of over 26,000 bopd on June
30, 2022 confirming the current facility oil handling capacity;
-- Drilled and completed four highly productive horizontal oil
wells in 2022, with wells 10H and 11H delivering initial production
rates in excess of 10,000 bopd;
-- During well 13H's drilling operation the technical team
encountered the target producing formation approximately three
meters higher than prognosis which contributed to oil-in-place and
reserves upgrades in the 2022 year-end reserve report;
-- Generated record annual net operating income ("NOI") of $274
million ($56.90/bbl) and adjusted EBITDA inclusive of realized
derivative impacts, of $256 million ($53.28/bbl);
-- 2022 free funds flow totalled $161.9 million, prior to
working capital adjustments and debt service, and after $94.2
million in total capital expenditures. This equates to a 38% free
funds flow yield using the December 31, 2022 market capitalization
and was approximately $33.66/bbl;
-- Announced in September 2022, Messrs. Luis Carranza and Jon
Harris were elected as directors for the Company following the
retirement of Messrs. Gary Guidry and Ryan Ellson; and,
-- Exited 2022 with approximately $120 million in cash ($15.6
million restricted) and a $74 million net surplus on the balance
sheet allowing for full bond repayment subsequent to December 31,
2022.
Selected Q4 2022 and 2022 Financial and Operational
Highlights
(in thousands USD) Three Months Ended Twelve Months Ended
Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Dec 31, 2021
---------------------------- --------- ------------- ------------- ------------- -------------
Average Production Bopd 10,374 10,147 12,200 8,966
Average Sales " 10,420 7,242 13,168 8,449
---------------------------- --------- ------------- ------------- ------------- -------------
Average Brent ICE
Price $/bbl $88.61 $79.79 $98.92 $70.82
Contracted Sales
Price(1) " $88.22 $77.46 $96.67 $68.22
Tariffs, fees, and
differentials " ($21.71) ($18.56) ($21.96) ($16.60)
---------------------------- --------- ------------- ------------- ------------- -------------
Realized Sales
Price " $66.51 $58.90 $74.71 $51.62
---------------------------- --------- ------------- ------------- ------------- -------------
Royalties(2) " ($6.08) ($3.46) ($6.66) ($2.91)
Lifting " ($7.42) ($7.60) ($6.86) ($6.99)
Direct Transportation " ($2.50) ($9.23) ($4.29) ($7.69)
---------------------------- --------- ------------- ------------- ------------- -------------
Netback(3) " $50.51 $38.61 $56.90 $34.03
---------------------------- --------- ------------- ------------- ------------- -------------
Net Operating Income $48,422 $25,727 $273,539 $104,960
Adjusted EBITDA(4) $36,338 $11,887 $256,069 $101,974
Net Income $37,176 $6,844 $188,527 $63,972
--------------------------------------- ------------- ------------- ------------- -------------
Basic Shares Outstanding 000's 862,209 828,197 862,209 828,197
Market Capitalization(5) $431,104 $273,305 $431,104 $273,305
Net Income/share $/share $0.04 $0.01 $0.22 $0.08
---------------------------- --------- ------------- ------------- ------------- -------------
Capex $32,024 $26,601 $94,202 $82,191
Free funds Flow(6) $4,314 ($14,714) $161,867 $19,783
% of Market Capitalization 0.1% (5.4%) 37.5% 7.2%
--------------------------------------- ------------- ------------- ------------- -------------
Total Cash(7) $119,969 $74,459 $119,969 $74,459
Net Surplus (Debt)(8) $74,225 ($56,076) $74,225 ($56,076)
--------------------------------------- ------------- ------------- ------------- -------------
1. Approximately 71% of sales in 2022 were through the Brazilian
route vs 27% in 2021.
2. Royalties in Q3 and Q4 2022 include the impact of the 2.5%
community social trust retroactive to the beginning of 2022.
3. Netback per barrel ("bbl") does not have standardized meaning
prescribed by GAAP and therefore may not be comparable with the
calculation of similar measures for other entities. See "Selected
Financial Measures" section.
4. Adjusted EBITDA is Net Operating Income less G&A and
plus/minus realized derivative impacts. See "Selected Financial
Measures" section.
5. Market capitalization for 2022 and 2021 assume share prices
of $0.50 and $0.33, respectively.
6. Free funds flow is defined as adjusted EBITDA less capital
expenditures.
7. Includes restricted cash balances.
8. Net Surplus/Debt = Total cash + all trade and VAT receivables
+ short and long term net derivative balances - total current
liabilities - long term debt - non current lease liabilities -
deferred tax - other long term obligations.
Selected Q4 2022 and FY 2022 Financial and Operating
Highlights
Production and sales. Production and sales for the quarter
averaged 10,374 and 10,420 bopd respectively. Production was
significantly constrained during October and November 2022 due to
low river levels and a river blockade, however, the Company was
able to produce an average of 20,766 bopd during the last two weeks
in December once these two issues were resolved which allowed
quarterly production to average above 10,000 bopd.
Net Revenue profile . Oil revenue in Q4 2022, net of tariffs,
fees, and differentials was $63.8 million ($66.51/bbl) compared to
Q3 2022 of $84.2 million ($75.07/bbl) and Q4 2021 of $39.2 million
($58.9/bbl).
High margin operational cash flow. Generated Q4 2022 NOI and
Adjusted EBITDA of $48.4 million ($50.51/bbl) and $36.3 million
($37.87/bbl), respectively, compared to $62.3 million ($55.58/bbl)
and $84.2 million ($75.10/bbl), respectively, in Q3 2022 and $25.7
million ($38.61/bbl) and $11.9 million ($17.84/bbl), respectively,
in Q4 2021. Net operating income for 2022 represents a 57% margin
on contracted gross sales revenue allowing sufficient margin to
fund CAPEX, G&A and debt service.
Capital expenditures. Capital deployed in Q4 2022 totalled $32.0
million, of which approximately 65% was allocated to drilling and
completing wells 12H and 13H and commencing drilling on the
Company's next water disposal well, 4WD. For the year ended
December 31, 2022, the Company invested a total of $94.2 million in
capital expenditures, a $12.1 million (15%) increase from 2021,
driving a 36% increase in year-over-year production.
Substantial Net income. PetroTal posted Q4 2022 net income of
$37.2 million, making Q4 2022 the 12th quarter in a row with
positive net income. Net income for the year ended 2022 was $188.5
million ($0.22/share) and approximately 44% of PetroTal's exit 2022
market capitalization.
Solid balance sheet metrics allowing flexible capital
allocation. Year-end 2022 short and long term debt was $81.4
million including accrued interest payable generating an exit debt
to 2022 adjusted EBITDA ratio of 0.3x. Including working capital
and cash, the Company exited 2022 with a net surplus of $74.2
million or approximately 17% of the Company's market capitalization
at year-end 2022.
Net derivative asset balance. The total net derivative asset on
the balance sheet as at December 31, 2022 was $20.4 million, an
increase of $16.8 million from Q3 2022, driven by mark-to-market
changes in the value of oil in the Northern Peruvian Oil Pipeline
("ONP"). As at December 31, 2022 approximately 2.4 million barrels
remained in the ONP with an average cost base of approximately
$70/bbl.
Petroperu payment schedule finalized to reduce receivable
balances. During Q4 2022, PetroTal and Petroperu finalized a
repayment agreement for the $64 million in true-up revenue owed to
the Company by Petroperu from a July 2022 oil export of 720,000
barrels. As at March 1, 2023 the Company has received nearly $27
million (40%) in accordance with the scheduled payments.
Robust production from wells 13H and 12H. Well 13H was drilled
and completed in late Q3/early Q4 2022 and generated an initial
peak production rate of 8,000 bopd during its first week of
production. The drilling team encountered the target formation
approximately three meters higher than prognosis which positively
impacted 2022 year-end reserves and oil-in-place estimates. Well
12H was completed and tested around December 16, 2022, however due
to export constraints the well's pump was not activated to
constrain higher production rates until mid Q1 2023.
Financial and Operating Highlights Subsequent to December 31,
2022
Continuous development to increase production. Drilling
commencement of drilling 14H began on February 8, 2023 following
the successful drilling and coring of the Company's third water
disposal well on January 29, 2023. Well 14H will be the longest
horizontal well ever drilled in Peru with a total measured depth of
around 5,135 meters. The well took 38 days to drill and encountered
excellent Vivian sands with over 840 meters of net pay. Available
production capacity is essential for allowing the Company to ramp
up production quickly when additional sales capacity become
available.
Full repayment of bonds. On February 15, 2023, the Company made
the regularly scheduled payment to bondholders totaling $25
million, plus accrued interest. In addition, on March 24, 2023,
PetroTal fulfilled its promise to shareholders and repaid the
remaining $55 million of bonds, plus $3 million of accrued interest
and prepayment fees, thereby allowing for shareholder return
commencement.
Production resumes at over 20,000 bopd from barge travel
normalization. Low river levels late in 2022 caused an
overweighting of available barges to the field in late December
2022 and early 2023. During January and February 2023, the Company
was only able to produce approximately 7,600 bopd and 8,000 bopd,
respectively. Late in February 2023, the Company was able to ramp
up production and will now produce and sell into an evenly
distributed and expanded barge fleet chain for the remainder of the
year. Production from March 1, 2023 until March 29, 2023 has
averaged approximately 20,500 bopd.
Well 12H on pump and producing at strong rates. During Q1 2023,
well 12H was put on pump and has averaged approximately 5,200 bopd
since it was put on pump the last week of February, following the
field's type curve for horizontal wells. This drilling location has
increased the probability for additional drilling locations to the
south of well 12H and 13H.
Return of capital focused 2023 budget. On January 16, 2023,
PetroTal announced a $125 million fully funded capital program that
targets average production between 14,000 and 15,000 bopd in 2023
with possible river level upside allowing 17,000 bopd in the second
half 2023. Under base case production guidance, EBITDA is projected
to be $220 million using an $84/bbl average 2022 Brent oil price.
This generates after-tax free funds flow of $55 million,
strengthening total accessible cash in 2023 to $241 million prior
to debt service.
TSX-V award winner and TSX graduation. PetroTal was recognized
as a top TSX Venture exchange performer for 2022 ranking 4th in
share performance and market capitalization size in the energy
sector. On February 16, 2023, PetroTal graduated to the TSX under
the same trading symbol "TAL".
2. 5% community social trust approved into Supreme Decree. On
March 9, 2023, the Company announced the publication of the Supreme
Decree signed by Peru's President authorizing Perupetro to execute
the amendment incorporating the 2.5% Community Social Trust Fund
into the Block 95 License Contract. Bylaw approvals for the trust
are expected to occur by the end of April 2023, at which time the
amendment to the License Contract shall be executed.
Barging fleet expanded. The Company has expanded its gross
contracted barging fleet by over 25% to 1.5 million barrels from
the previous capacity of 1.2 million. By increasing the fleet
export capacity, the Company will be better able to mitigate
situations where barge carrying capacity is limited and/or slow
moving. The Company anticipates selling approximately 640,000
barrels of oil in March 2023, mostly through the Brazil export
route, and expects deliveries of 550,000 barrels in April 2023,
under normalized river conditions. March would then be the first
month in PetroTal's history that 600,000 barrels of oil are sold
via Brazil, which was an initial goal when the first 140,000 barrel
Brazilian export was completed in December 2020. Now the Company is
committed to replicating this on a consistent basis.
New working capital credit line secured . PetroTal has
successfully secured a revolving working capital line of credit for
approximately $20 million with a Peruvian bank. The working capital
line will allow the Company to better manage a stable return of
capital program, in conjunction with ensuring cash liquidity. The
revolving working capital line can be drawn and repaid at any
time.
Return of Capital Update
PetroTal is now long-term debt free and is excited to announce
Board approval of a normal course issuer bid ("NCIB") share buyback
program. Subject to approval by the Toronto Stock Exchange, the
NCIB will allow the Company to purchase up to 10% of PetroTal's
public float, over a period of twelve months, commencing in Q2
2023.
Under the NCIB, common shares may be repurchased on the open
market through the facilities of both the TSX and AIM exchanges, in
accordance with TSX and AIM regulations.
In addition, PetroTal is pleased to reinstate a US$0.015 per
share quarterly eligible dividend(1) with expected record and
payment dates in June 2023. On an annualized basis, this represents
US$0.06/share and an approximate yield of 13.9% based on a trading
price of US$0.45/share. This quarterly cash dividend will be
designated as an "eligible dividend" for Canadian income tax
purposes.
(1) See reader advisories.
Updated Corporate Presentation and Investor Webcast
PetroTal will host a virtual investor webcast meeting on March
30, 2023, following the release of these 2022 results. See the link
below to join the webcast beginning at 9am Central Time and 3pm
London time. The Company has also provided an updated corporate
presentation with the 2022 results, on its website.
https://stream.brrmedia.co.uk/broadcast/63ff1852d684866e54345b62
ABOUT PETROTAL
PetroTal is a publicly traded, tri--quoted (TSX: TAL, AIM: PTAL
and OTCQX: PTALF) oil and gas development and production Company
domiciled in Calgary, Alberta, focused on the development of oil
assets in Peru. PetroTal's flagship asset is its 100% working
interest in Bretana oil field in Peru's Block 95 where oil
production was initiated in June 2018. In early 2022, PetroTal
became the largest crude oil producer in Peru. The Company's
management team has significant experience in developing and
exploring for oil in Peru and is led by a Board of Directors that
is focused on safely and cost effectively developing the Bretana
oil field. It is actively building new initiatives to champion
community sensitive energy production, benefiting all
stakeholders.
For further information, please see the Company's website at
www.petrotal-corp.com , the Company's filed documents at
www.sedar.com , or below:
Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101
PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com
Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494
Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600
Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449
READER ADVISORIES
FORWARD-LOOKING STATEMENTS: This press release contains certain
statements that may be deemed to be forward-looking statements.
Such statements relate to possible future events, including, but
not limited to: PetroTal's business strategy, objectives, strength
and focus; drilling, completions, workovers and other activities
and the anticipated costs and results of such activities;
PetroTal's anticipated capital program and operational results for
2023 including, but not limited to, estimated or anticipated
production levels, capital expenditures and drilling plans; plans
to deliver strong operational performance and to generate free
funds flow and growth; capital requirements; the ability of the
Company to achieve drilling success consistent with management's
expectations; anticipated future production and revenue; drilling
plans including the timing of drilling, commissioning, and startup
and the impact of delays thereon; oil production levels; and the
Company's return of capital strategy including regular dividends
and share buybacks under an NCIB. All statements other than
statements of historical fact may be forward-looking statements. In
addition, statements relating to expected production, reserves,
recovery, replacement, costs and valuation are deemed to be
forward-looking statements as they involve the implied assessment,
based on certain estimates and assumptions that the reserves
described can be profitably produced in the future. Forward-looking
statements are often, but not always, identified by the use of
words such as "anticipate", "believe", "expect", "plan",
"estimate", "potential", "will", "should", "continue", "may",
"objective" and similar expressions. More particularly, this press
release contains statements concerning the future declaration and
payment of dividends and the timing and amount thereof. Future
dividend payments, if any, and the level thereof, is uncertain, as
the Company's dividend policy and the funds available for the
payment of dividends from time to time is dependent upon, among
other things, free funds flow financial requirements for the
Company's operations and the execution of its growth strategy,
fluctuations in working capital and the timing and amount of
capital expenditures, debt service requirements and other factors
beyond the Company's control. Further, the ability of PetroTal to
pay dividends will be subject to applicable laws (including the
satisfaction of the solvency test contained in applicable corporate
legislation) and contractual restrictions contained in the
instruments governing its indebtedness. The forward-looking
statements are based on certain key expectations and assumptions
made by the Company, including, but not limited to, expectations
and assumptions concerning the ability of existing infrastructure
to deliver production and the anticipated capital expenditures
associated therewith, the ability of the Ministry of Energy to
effectively achieve its objectives in respect of reducing social
conflict and collaborating towards continued investment in the
energy sector, reservoir characteristics, recovery factor,
exploration upside, prevailing commodity prices and the actual
prices received for PetroTal's products, including pursuant to
hedging arrangements, the availability and performance of drilling
rigs, facilities, pipelines, other oilfield services and skilled
labour, royalty regimes and exchange rates, the impact of inflation
on costs, the application of regulatory and licensing requirements,
the accuracy of PetroTal's geological interpretation of its
drilling and land opportunities, current legislation, receipt of
required regulatory approval, the success of future drilling and
development activities, the performance of new wells, future river
water levels, the Company's growth strategy, general economic
conditions and availability of required equipment and services.
Although the Company believes that the expectations and assumptions
on which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because the Company can give no assurance that they will
prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited to, risks
associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses; and health, safety and
environmental risks), commodity price volatility, price
differentials and the actual prices received for products, exchange
rate fluctuations, legal, political and economic instability in
Peru, access to transportation routes and markets for the Company's
production, changes in legislation affecting the oil and gas
industry and uncertainties resulting from potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures; changes in the financial
landscape both domestically and abroad, including volatility in the
stock market and financial system; and wars (including Russia's war
in Ukraine). In addition, the Company cautions that current global
uncertainty with respect to the spread and evolution of the
COVID-19 virus and its effect on the broader global economy may
have a significant negative effect on the Company. While the
precise impact of the COVID-19 virus on the Company remains
unknown, rapid spread of the COVID-19 virus may continue to have a
material adverse effect on global economic activity, and may
continue to result in volatility and disruption to global supply
chains, operations, mobility of people and the financial markets,
which could affect interest rates, credit ratings, credit risk,
increased operating and capital costs due to inflationary
pressures, business, financial conditions, results of operations
and other factors relevant to the Company. Please refer to the risk
factors identified in the Company's AIF and MD&A which are
available on SEDAR at www.sedar.com. The forward-looking statements
contained in this press release are made as of the date hereof and
the Company undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws.
OIL REFERENCES: All references to "oil" or "crude oil"
production, revenue or sales in this press release mean "heavy
crude oil" as defined in NI 51-101. All references to Brent
indicate Intercontinental Exchange ("ICE") Brent. Recovery factor
percentages include historical production.
RESERVES DISCLOSURE: All reserves values, future net revenue and
ancillary information contained in this press release are derived
from the NSAI Report unless otherwise noted. Estimates of reserves
and future net revenue for individual properties may not reflect
the same level of confidence as estimates of reserves and future
net revenue for all properties, due to the effect of aggregation.
There is no assurance that the forecast price and cost assumptions
applied by NSAI in evaluating PetroTal's reserves will be attained
and variances could be material. It should not be assumed that the
estimates of future net revenues presented in the tables below
represent the fair market value of the reserves. The recovery and
reserve estimates of PetroTal's oil reserves provided herein are
estimates only and there is no guarantee that the estimated
reserves will be recovered. Actual oil reserves may be greater than
or less than the estimates provided herein. There are numerous
uncertainties inherent in estimating quantities of crude oil,
reserves and the future cash flows attributed to such reserves. The
reserve and associated cash flow information set forth herein are
estimates only. Proved reserves are those reserves that can be
estimated with a high degree of certainty to be recoverable. It is
likely that the actual remaining quantities recovered will exceed
the estimated proved reserves. Probable reserves are those
additional reserves that are less certain to be recovered than
proved reserves. It is equally likely that the actual remaining
quantities recovered will be greater or less than the sum of the
estimated proved plus probable reserves. Proved developed producing
reserves are those reserves that are expected to be recovered from
completion intervals open at the time of the estimate. These
reserves may be currently producing or, if shut-in, they must have
previously been on production, and the date of resumption of
production must be known with reasonable certainty. Possible
reserves are those reserves expected to be recovered from known
accumulations where a significant expenditure (e.g., when compared
to the cost of drilling a well) is required to render them capable
of production. They must fully meet the requirements of the
reserves category (proved, probable, possible) to which they are
assigned. Certain terms used in this press release but not defined
are defined in NI 51-101, CSA Staff Notice 51-324 - Revised
Glossary to NI 51-101, Revised Glossary to NI 51-101, Standards of
Disclosure for Oil and Gas Activities ("CSA Staff Notice 51-324")
and/or the COGEH and, unless the context otherwise requires, shall
have the same meanings herein as in NI 51-101, CSA Staff Notice
51-324 and the COGEH, as the case may be.
DRILLING LOCATIONS: This press release discloses drilling
inventory in three categories: (a) proved locations; (b) probable
locations; and (c) possible locations, all of which are derived
from the NSAI Report and account for drilling locations that have
associated proved, probable and/or possible reserves, as
applicable. There is no certainty that PetroTal will drill all
booked drilling locations and if drilled there is no certainty that
such locations will result in additional oil reserves or
production. The drilling locations considered for future
development will ultimately depend upon the availability of
capital, regulatory approvals, seasonal restrictions, oil prices,
costs, actual drilling results, additional reservoir information
that is obtained and other factors. While certain of the possible
drilling locations have been de-risked by drilling existing wells
in relative close proximity to such drilling locations, other
possible drilling locations are farther away from existing wells
where management has less information about the characteristics of
the reservoir and therefore there is more uncertainty whether wells
will be drilled in such locations and if drilled there is more
uncertainty that such wells will result in additional oil reserves
or production.
SHORT-TERM PRODUCTION RATES: References in this press release to
the peak rates and other short term production rates are useful in
confirming the presence of hydrocarbons, however such rates are not
determinative of the rate at which such wells will commence
production and decline thereafter and are not indicative of
long-term performance or of ultimate recovery. While encouraging,
readers are cautioned not to place reliance on such rates in
calculating the aggregate production for PetroTal. The Company
cautions that such results should be considered to be
preliminary.
SPECIFIED FINANCIAL MEASURES: This press release includes
various specified financial measures, including non-GAAP financial
measures, non-GAAP financial ratios and capital management measures
as further described herein. These measures do not have a
standardized meaning prescribed by generally accepted accounting
principles ("GAAP") and, therefore, may not be comparable with the
calculation of similar measures by other companies. Management uses
these non- GAAP measures for its own performance measurement and to
provide shareholders and investors with additional measurements of
the Company's efficiency and its ability to fund a portion of its
future capital expenditures. "Netback" (non-GAAP financial ratio)
equals total petroleum sales less quality discount, lifting costs,
transportation costs and royalty payments calculated on a bbl
basis. The Company considers netbacks to be a key measure as they
demonstrate Company's profitability relative to current commodity
prices. "Funds flow provided by operations" (non-GAAP financial
measure) includes all cash generated from operating activities and
is calculated before changes in non-cash working capital. "Adjusted
EBITDA" (non-GAAP financial measure) is calculated as consolidated
net income (loss) before interest and financing expenses, income
taxes, depletion, depreciation and amortization and adjusted for
G&A impacts and certain non-cash, extraordinary and
non-recurring items primarily relating to unrealized gains and
losses on financial instruments and impairment losses, including
derivative true-up settlements. PetroTal utilizes adjusted EBITDA
as a measure of operational performance and cash flow generating
capability. Adjusted EBITDA impacts the level and extent of funding
for capital projects investments. Reference to EBITDA is calculated
as net operating income less G&A. "Free funds flow" (non-GAAP
financial measure) is calculated as net operating income less
G&A less exploration and development capital expenditures less
realized derivative gains/losses and is calculated prior to all
debt service, taxes, lease payments, hedge costs, factoring, and
lease payments. Management uses free cash flow to determine the
amount of funds available to the Company for future capital
allocation decisions. Please refer to the MD&A for additional
information relating to specified financial measures.
OIL AND GAS MEASURES: This press release contains metrics
commonly used in the oil and natural gas industry which have been
prepared by management, such as "OOIP", "development capital",
"F&D costs", "net asset value" and "reserves life index". These
terms do not have a standardized meaning and may not be comparable
to similar measures presented by other companies, and therefore
should not be used to make such comparisons. "OOIP" is equivalent
to total petroleum initially-in-place ("TPIIP"). TPIIP, as defined
in the COGEH, is that quantity of petroleum that is estimated to
exist in naturally occurring accumulations. It includes that
quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations, prior to production, plus those
estimated quantities in accumulations yet to be discovered. A
portion of the TPIIP is considered undiscovered and there is no
certainty that any portion of such undiscovered resources will be
discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of such undiscovered
resources. With respect to the portion of the TPIIP that is
considered discovered resources, there is no certainty that it will
be commercially viable to produce any portion of such discovered
resources. A significant portion of the estimated volumes of TPIIP
will never be recovered. "Development capital" means the aggregate
exploration and development costs incurred in the financial year on
reserves that are categorized as development. Development capital
excludes capitalized administration costs. "Finding and development
costs" or "F&D costs" are calculated as the sum of field
capital plus the change in future development costs for the period
divided by the change in reserves that are characterized as
development for the period. Finding and development costs take into
account reserves revisions during the year on a per bbl basis. The
aggregate of the exploration and development costs incurred in the
financial year and changes during that year in estimated future
development costs generally will not reflect total finding and
development costs related to reserves additions for that year. "Net
asset value" is based on present value of future net revenues
discounted at 10% before tax on reserves, net of estimated net debt
at year-end divided by the basic shares outstanding at year-end.
"Reserve life index" is calculated as total Company interest
reserves divided by annual production. These terms have been
calculated by management and do not have a standardized meaning and
may not be comparable to similar measures presented by other
companies, and therefore should not be used to make such
comparisons. Management uses these oil and gas metrics for its own
performance measurements and to provide shareholders with measures
to compare PetroTal's operations over time. Readers are cautioned
that the information provided by these metrics, or that can be
derived from the metrics presented in this press release, should
not be relied upon for investment or other purposes.
Eligible Dividend : An eligible dividend is one which is
characterized as such by the dividend-paying corporation for
Canadian residents. The primary benefit of an eligible dividend is
that it benefits from an enhanced gross-up and credit regime at the
shareholder level (i.e., the shareholder pays less tax on eligible
dividends than non-eligible dividends). This is meant to compensate
for the higher general corporate tax rate paid by non-CCPC's on
their income and generally preserve integration of Canada's tax
rates. As an example, for federal income tax purposes the gross-up
rate for eligible dividends is 38% (as compared to 15% for
non-eligible dividends) such that the amount of the dividend is
multiplied by 1.38 to determine the taxable income to the
shareholder. The dividend tax credit for eligible dividends is
additionally increased to 6/11 (or 15.02%), as compared to 9/13
(9%) for non-eligible dividends, to offset the greater income
inclusion to the taxpayer. Each province provides similar relief on
the tax they would otherwise levy on the dividends, although the
effective gross-up and credit differs by province.
FOFI DISCLOSURE: This press release contains future-oriented
financial information and financial outlook information
(collectively, "FOFI") about NPV-10, future development and
abandonment costs, prospective results of operations, production
and production capacity, free funds flow, revenue, margins, NOI,
shareholder returns and components thereof, all of which are
subject to the same assumptions, risk factors, limitations and
qualifications as set forth in the above paragraphs. FOFI contained
in this press release was approved by management as of the date of
this press release and was included for the purpose of providing
further information about PetroTal's anticipated future business
operations. PetroTal and its management believe that FOFI has been
prepared on a reasonable basis, reflecting management's best
estimates and judgments, and represent, to the best of management's
knowledge and opinion, the Company's expected course of action.
However, because this information is highly subjective, it should
not be relied on as necessarily indicative of future results.
PetroTal disclaims any intention or obligation to update or revise
any FOFI contained in this press release, whether as a result of
new information, future events or otherwise, unless required
pursuant to applicable law. Readers are cautioned that the FOFI
contained in this press release should not be used for purposes
other than for which it is disclosed herein. All FOFI contained in
this press release complies with the requirements of Canadian
securities legislation, including NI 51-101. Changes in forecast
commodity prices, differences in the timing of capital
expenditures, and variances in average production estimates
can have a significant impact on the key performance measures
included in PetroTal's guidance. The Company's actual results may
differ materially from these estimates.
Neither the TSX Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Exchange)
accepts responsibility for the adequacy or accuracy of this press
release.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCEALDEDDLDEEA
(END) Dow Jones Newswires
March 30, 2023 02:00 ET (06:00 GMT)
Petrotal (LSE:PTAL)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Petrotal (LSE:PTAL)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024