- 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
PetroTal has reported its operating and audited financial results for the three months and year ended December 31, 2022.
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.
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Source: PetroTal
