PetroTal Corp, a Company focused on the development of oil assets in Peru, has provided the following operational and financial updates. All amounts are in US dollars unless stated otherwise.
Key Highlights
- Group production averaged 12,557 barrels of oil per day ('bopd') in Q2 2026, and 13,726 bopd in H1 2026;
- Sale of Amazonia-1 drilling rig for net cash proceeds of $13.4 million;
- Total cash of $136.8 million as of June 30, 2026 ($105.3 million unrestricted), compared to $128.1 million at the end of Q1 2026.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
'PetroTal's operational performance remained strong in the second quarter of 2026. Our production is tracking approximately 3% ahead of budget through the first half of the year, and we also completed the sale of the Amazonia-1 drilling rig at the end of the quarter. This transaction, along with a constructive commodity price environment, helped support our cash balance as we gear up for an active capital program in the second half of the year.
Beginning this month, we are undertaking pump and tubing replacement jobs on 4-5 wells at the Bretana field. This work will help improve our production deliverability over the remainder of the year and is fully accounted for within our budget guidance. We are also well advanced with final preparations for the resumption of our development drilling campaign in October, which we view as a key catalyst for the Company heading into 2027. We look forward to providing a more comprehensive operational update with our Q2 2026 financial results on August 6, 2026.'
Q2 2026 Production and Operations Update
PetroTal's group production averaged 12,557 bopd in Q2 2026, including 12,190 bopd from the Bretana field (Block 95; PetroTal 100% WI) and 367 bopd from the Los Angeles field (Block 131; PetroTal 100% WI). Through the first half of 2026, PetroTal's group production has averaged 13,726 bopd, approximately 3% ahead of budget expectations.
As previously disclosed, PetroTal plans to complete pump and tubing replacement work on 4-5 wells at the Bretana field in Q3 2026. The work program will begin in July and is expected to wrap up in time for the resumption of the development drilling campaign by October 1, 2026. PetroTal reaffirms its annual production guidance of 12,000 bopd, which fully reflects the anticipated downtime associated with the workover campaign.
There are no material changes to the status of the erosion control project at this time. PetroTal remains in discussions with third-party contractors about restarting construction activities in a safe, cost-effective manner as soon as possible.
Sale of Amazonia-1 Drilling Rig
On June 30, 2026, PetroTal closed the sale of its Amazonia-1 drilling rig to an arm's-length third party for net cash proceeds of $13.4 million. In connection with the transaction, PetroTal expects to record an impairment charge of approximately $10 million in its Q2 2026 financial results.
Cash and Liquidity Update
PetroTal ended Q2 2026 with a total cash position of $136.8 million, of which approximately $105.3 million was unrestricted. This compares to unrestricted cash of $104.3 million at the end of Q1 2026 and $99.3 million at the end of Q2 2025.
As of June 30, 2026, PetroTal's unaudited short-term trade and other payables and short-term trade receivables were approximately $40.4 million and $61.2 million, respectively (versus comparable values of $51.4 million and $61.9 million as of March 31, 2026, respectively).
PetroTal did not initiate any new production hedges in Q2 2026. As at June 30, 2026 and in line with previous disclosure, the Company maintains hedges on approximately 0.7 million barrels over the remainder of 2026 and 1.1 million barrels inclusive of 2027. The costless collars have an average Brent floor price of $60.00/bbl and a ceiling of $73.00/bbl, with a cap of $93.00/bbl. As of June 30, 2026, PetroTal's production hedges had a fair value of negative $2.3 million.
Source: PetroTal
