Petrotal Share Discussion Threads

[croasdalelfc] 12/1/2021 09:52

Estimated end 2021 at 18000 bopd

[croasdalelfc] 12/1/2021 09:51

Presentation is now online

[mount teide] 12/1/2021 09:37

Great update.....timing could not be better ......resumption of the growth story is back on track ......Bond Issue, production back over 10k, liabilities to be shortly settled, early recommencement of production development drilling on Bretena, multiple oil sales options, hedging strategy, and acquisitions.

The Q1/2022 plan to hit 20kbopd from Bretana could potentially generate annual netbacks of circa $200m at the current oil price.

A $100m bond with a 12% interest rate would require just 6% of the annual netback to service.

The proposed $100m bond issue would give management the tools to fast track the development of the company into a 30-40k bopd producer. Compared to many peers the debt is modest and should be relatively easy to service from the very strong cash flows the Bretana cash cow throws off.

According to research carried out by 'Henrik' on twitter, some of Petrotal's peers with circa 40k bopd of production have the following debt: FEC 350m bond, GTE 790m, Geopark 795m.

[chris_engel] 12/1/2021 08:58

$100 million does seem a large number. I wonder if Remus have agreed to fund some of it?

In the 7th Jan update they say: "The Company continues to work towards finalizing a significant credit facility to support the planned capital program and a return to development drilling at the Bretana oil field."

I always thought a credit facility is some sort of bank loan and not a bond issue. Also the plan to pay back Petroperu over 3 years is obsolete. It looks to me that the decision for a bond issue has just been made over the last days?

[thommie] 12/1/2021 08:52

very good update. again doing what they said before, like all over the last 2 years - like Mt said - outstanding Management. this day will be remembered when ptal went back to continously outperforming their targets again!

[qs99] 12/1/2021 08:49

Last post, but interesting to see oil holding above $50....should put more $s in many oilers pockets IMO...DYOR

[qs99] 12/1/2021 08:48

Mr Market seems to like it IMO and have bought a few more this am as see this trending back through 20p in short order....DYOR

[qs99] 12/1/2021 08:37

More info needed, but if debt is sustainable then saves dilution to us equity holders no? Looks encouraging IMO DYOR

[jbravo2] 12/1/2021 08:12

You're right in that it raises plenty of questions.I'd guess it'll be used to help start production in the blocks relinquished by other companies in Peru.Clearly it's a guess as the awards haven't happened yet.But that's why this is still 16p.Sometimes not knowing the answers for sure provide opportunities. Once the market knows, everyone knows.

[11_percent] 12/1/2021 08:07

People like it .....all buys...

[pec2004] 12/1/2021 08:03

Added first thing.

[kaos3] 12/1/2021 08:01

1.good use of the timing
2. no interest rate given
3. 3 years for 100 m is ??? and will require head scratching in 3 years ?
4. phrase "may be" used
4. it does not describe exactly the installments of the bond, sink fund??? creation etc

just not enough info to form an opinion

[11_percent] 12/1/2021 07:58

$100 million bond issue is hell a large number, compared with a market cap of £216.

[zeusfurla] 12/1/2021 07:55

McFly

Agree this is excellent news. I had expected a further placing given debt levels but now can see a clear path to higher development, subject to funding being sourced.

[mcfly79] 12/1/2021 07:54

If they get the bond away without any issues we should see a major rerating IMO.

[sleveen] 12/1/2021 07:48

the cumulative oil price difference liability......is the full year 2020 liability and the $2.7m is the Q4 2020 liability.

[mcfly79] 12/1/2021 07:46

The $16.6m is the value of the liability as at 30 Nov 2020. This is what the structured payment terms will be based on.


However since then the liability has reduced to $2.7m (actually even lower at the current Brent price).


The remaining oil sales are due to settle by May 2021 so Petrotal will receive additional cash inflow from the settlement.


The net impact is that Petrotal will only pay $2.7m (or less), it's just a timing difference.


So if they use some of the $100m to pay off the $16.6m liability upfront, they'll received most of it back over the coming months and still have the full $100m for drilling and acquisitions.

[nametrade] 12/1/2021 07:40

Sleveen

The way I see it is that enough oil has left PTAL to reduce liability to 2.7 million but is only settled up once Petroperu has sold it. It was expecting payments to start in February.

[mcfly79] 12/1/2021 07:37

I hadn't expected such a large debt issue.

This is fantastic news for the development of the company. It will allow production to be raised to 20,000 bopd by Q1 2021 and also allow drilling of block 107. It will also fund acquisitions. All without diluting shareholders.

[sleveen] 12/1/2021 07:29

Can anyone reconcile:


The proceeds of the potential Bond Issue will be used to settle in full the cumulative oil price difference liability owed to Petroperu (approximately USD 16.6 million - as previously announced).
(today's RNS)

and

-- As a result of higher oil prices, the Company's contingent derivative liability was reduced to $2.7 million at December 31, 2020;
(last week's RNS)

[jailbird] 12/1/2021 07:17

Wakey wakey PetroTal announces contemplated $100 million Bond Issue and Operations UpdateFunds anticipated to be primarily invested to expand development of the Bretana oil field and prepay 100% of Petroperu's restructured debt

[thommie] 10/1/2021 13:02

try to use your smartphone. maybe it works with it :)

[thommie] 10/1/2021 12:54

if I remember it right ptal said sth about it in a rns end 2019. but have to search for it. if I remember right this numbers are produced oil in lot 95, being reported 3-4days after really produced and for royalty purposes only. bretana crude is low api and has to be blended with a high api one before onp transportation, otherwise it wouldnt be transportable. the blending costs around 2-3$\bbl and raises the volume put in the onp. this higher volume isnt reflected in the petroperu numbers if I remember right what the ceo once said about it in a presentation.

[jbravo2] 10/1/2021 12:49

Absolutely. I’ve been here long enough to know the vagaries of the numbers, but it’s better to have information to discount than not to have it all.

Hmmm, that link still not working due to not being a secure connection. Perhaps my Mac settings. Will have to check. Thanks anyway Thommie

[doughcyclone] 10/1/2021 12:41

How much of conclusions can really be drawn from numbers on perupetros site these days? Oil loaded on boat or stored for future loading on boat, would it even show up here? I think not. It’s very tempting to look on the site but I think we should be very cautious to drawn any conclusions on decline rates etc from these numbers.