PetroTal, a publicly-traded oil and gas development and production company focused on the development of oil assets in Peru, hass reported its operating and financial results for the three months ended March 31, 2026.
Key Highlights
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Average Q1 2026 sales and production of 14,350 and 14,907 barrels of oil per day ('bopd'), respectively;
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Adjusted EBITDA(1) of $35.1 million ($27.22/bbl) represents a 90% increase relative to the prior quarter;
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Free Funds Flow(1) of $25.7 million in Q1 2026, compared to $3.3 million in Q4 2025;
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Total cash of $128.3 million as of March 31, 2026, compared to $113.6 million in March 2025;
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2026 Adjusted EBITDA guidance range increases to $110-120 million, from $30-40 million previously;
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Executed contract with third-party drilling service provider, ahead of planned resumption of development drilling in October 2026.
(1) Non-GAAP measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See 'Selected Financial Measures' section.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
'Our first quarter results reflect a continued focus on maintaining production at Bretana and positioning the Company for a return to growth, while also highlighting the positive impact of improving crude oil prices. Stronger realized pricing in March contributed to a 90% increase in Adjusted EBITDA compared to the prior quarter, despite lower production volumes in the period. This result demonstrates the Company’s operating leverage and ability to generate meaningful cash flow even at lower production levels.
'At Bretana, we remain focused on preparing the field for its next phase of growth. During the quarter and into April, we advanced key infrastructure initiatives, including stimulation work on water injection wells to increase injection capacity and help stabilize production ahead of our upcoming drilling campaign. We are already seeing the benefit of this work, with year-to-date sales volumes tracking slightly ahead of expectations as we approach the midpoint of the second quarter.
'In parallel, we have made good progress towards resuming our development drilling program. We recently signed a contract with a third-party drilling company and are advancing plans to mobilize the rig to the field, with drilling expected to begin in October 2026. We also plan to carry out pulling jobs in three wells in the third quarter, which we have scheduled ahead of the resumption of our drilling campaign, to help optimize performance and reduce the potential for production disruptions later in the year.
'Looking ahead, our priorities remain clear: sustain and build production at Bretana, execute our capital program, and position the Company to return to growth. We believe the steps we are taking today will improve operational reliability, support efficient capital deployment, and create long-term value for our shareholders.'
Operations Update
PetroTal continues to advance key operational initiatives at the Bretana field, positioning the Company to resume development drilling in October 2026. The Company has executed a contract with a third-party drilling service provider, whose rig is currently completing operations in Colombia. Following demobilization, the rig is expected to be transported to Peru by road and river, similar to prior equipment moves. Infrastructure work to position the drilling rig, along with the electromechanical activities required to tie in new wells to existing facilities, is progressing as planned. The operations team is also preparing to facilitate the rapid connection of the new wells, optimizing early production rates.
In April 2026, PetroTal conducted stimulation work on three of the four water injection wells at the Bretana field. The program was designed to increase formation water disposal capacity from the first quarter 2026 average of approximately 170,000 barrels of water per day (“bwpd”), to help support oil production ahead of the resumption of development drilling later this year. Bretana field production averaged approximately 12,850 bopd in April, reflecting brief, planned shut-ins of producing wells during the stimulation work. Since completing the program, production has increased, averaging approximately 13,050 bopd in the first week of May, while water injection capacity has risen to just over 180,000 bwpd.
In Q3 2026, PetroTal plans to carry out pulling jobs in three producing wells at Bretana, in keeping with expectations outlined in the Company’s 2026 budget guidance. This work is being advanced ahead of the planned restart of development drilling later this year.
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Source: PetroTal
