PetroTal Corp has provided the following operational update. All amounts are in US dollars unless stated otherwise.
Key Highlights
- Group production averaged 13,181 barrels of oil per day (“bopd”) YTD;
- Bretana development drilling campaign on schedule to resume in October;
- Amendment to the Block 131 License Contract has been executed, whereby royalties on incremental production have been materially reduced.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
'PetroTal's operations team continues to execute at a high level. Year-to-date production is running approximately 3% ahead of budget, supported by contributions from our recent pulling campaign, which was completed on time, on budget, and without any safety incidents. With the Estrella drilling rig already on location at Bretana, we are well positioned to resume development drilling on schedule and build on this momentum through the balance of 2026.'
Q3 2026 Production and Operations Update
PetroTal's group production averaged 11,709 bopd in August 2026, including 11,402 bopd from the Bretana field (Block 95; PetroTal 100% WI) and 308 bopd from the Los Angeles field (Block 131; PetroTal 100% WI). As of August 31, 2026, PetroTal's year-to-date production has averaged 13,181 bopd, approximately 3% ahead of internal budget expectations. PetroTal recently completed a pulling campaign at the Bretana field, where production tubing and electric submersible pumps were replaced in five wells. Remediation work in the wells has improved production deliverability, offsetting natural declines at the field. Following completion of the pump and tubing replacements in the producing wells, PetroTal commenced workovers on two water injection wells, with a view to increasing water injection capacity at the field. The work program is proceeding on time and on budget, ahead of the planned resumption of PetroTal's development drilling program in October 2026. PetroTal will notify the market once the first well in the program has spud.
Block 131 Royalty Update
PetroTal is also pleased to announce that it has executed an agreement with Perupetro to modify the Block 131 License Contract, establishing a new, differentiated royalty regime for incremental production at the Los Angeles field. Under the new framework, royalties on qualifying incremental production from the producing Cushabatay formation will be assessed on a price-sensitive sliding scale of 5%, 9%, and 15%, tied to the applicable Basket Price. The new royalty framework applies to volumes from new wells and workovers, including those conducted as part of PetroTal's 2025 work program. It is estimated that approximately 60% of the field's current production will be entitled to the new royalty scheme, while the remaining 40% will stay at the original royalty of 23.5%.
Importantly, any future production from the untested deeper Noi and Copacabana formations will carry a flat 5% royalty, setting a precedent for future contracts. As part of the agreement, PetroTal's contribution to the local Social Fund will increase to 2.5%, underscoring the Company's continued commitment to the communities in which it operates. In exchange for a reduced royalty structure, PetroTal has also committed to drill two new wells at Block 131 in the next two years; if the wells are not drilled within that timeframe, the royalty for all production will revert to the original 23.5%. The Company believes this new structure, and the Peruvian government's willingness to negotiate more competitive terms, reflects a broader effort to make Peru's oil and gas sector more attractive to investment, and meaningfully improves the economics of future drilling at Los Angeles.
Bretana Erosion Control Project
PetroTal continues to evaluate several proposals to reinitiate construction activities at the erosion control project. As disclosed previously, PetroTal has largely suspended construction activities for the erosion control project, after terminating its contract with the previous construction consortium in March 2026. The Company is proceeding methodically with the new tender process to ensure it selects the appropriate contractor, along with the right project scope and design. PetroTal has secured the jack-up rig and service barges needed for the work and stands ready to resume construction once contractor selection is complete. In the meantime, PetroTal's engineering team and its advisors have observed a positive response to erosion remediation efforts at the three partially constructed breakwaters at Bretana, and the Company will continue to supplement the riverbank with hydrobags, as it has done previously. PetroTal will continue to provide updates on this important infrastructure investment as necessary.
Source: PetroTal
