Petrotal Share Discussion Threads

[sleveen] 23/8/2021 14:32

Q2 finacials due shortly, should be better than last year's Q2.

[xxnjr] 20/8/2021 08:52

D18 Ave: 8,330

[loafingchard] 18/8/2021 22:36

Thank you xx

[xxnjr] 18/8/2021 09:45

Here you go Thommie. Enercom Denver talk now on PTAL website.

[thommie] 17/8/2021 19:07

ok perfect. jeah thats sth I was hoping for after recent 7D well which overperformed again against expectations. as well it was drilled into a spot between 2 existing wells, if I remember to further evaluate if such wells are able to improve recovery factor in an economic way, which no doubt has been proven, as it already paid for itself in only 2 months time.... lets see what happens till q4. I really hope ptal finally reaches 18-19 000 bopd and are able to further improve it.

[xxnjr] 17/8/2021 17:52

hi thommie - it was only about a 20 min talk which is the allotted time at Enercom and looked like MZ was using the June presentation thats on the PTAL website. He did land on slide 20 very briefly which highlights the projected 2022EV/cashflow multiple discount to peers, saying he had told the board Petrotal have to prove to the market they can hit their financial targets which should fix the share price. If it's new news, I think he said they were targeting 25K peak production (up from a recent projected ultimate peak number of 20K?) due to better understanding of the field and maybe we'll get a further (unquantified) reserves upgrade at year end due to recent/latest wells. Wouldn't say there was much new to my untrained ears (still getting back up to speed here! and didn't take notes) Would have thought Petrotal will upload the talk to their website. In any case Enercom usually have links to all of the presentations within a week, or so. I'll drop the link here when available.

Talks from Liberty Oilfield Services, Corelabs and Rystad Energy are usually quite interesting for a bit of perspective on some e&p matters.

[thommie] 17/8/2021 17:26

thx xxnjr, can you summarize any new things He said? I wasnt able to listen. hope they upload it in the next days as usual.

[xxnjr] 17/8/2021 16:26

"8H a 4200m well with an 1100m hz section will TD tomorrow. Have seen good oil saturation in good sands. It's not on production yet but from what we've seen - should be an outstanding well. Should take about 10 days to complete after TD." or words to that effect.

[xxnjr] 17/8/2021 13:58

At the time of writing it is 06:58 in Colorado.
PTAL presenting at Enercom 09:15hrs Mountain Time USA.


register here - it's free

[xxnjr] 17/8/2021 13:52

Short answer.....
Not a reflection of lumpy production - it's just the way it is counted by PeruPetro.

[bubloo] 17/8/2021 13:14

thx figured out production numbers. very erratic production numbers every day Why Though

[bubloo] 17/8/2021 12:49

Thommie where are you getting the production numbers from please

[thommie] 17/8/2021 08:57

new production numbers out. avg for the first 15 days in august are 8200 bopd.

[johnhemming] 14/8/2021 12:48

Francke is only relatively moderate. He would not IMO be considered as being on the right of the Labour Party.

Peru, however, has tried having the state run everything before and they know it doesn't work. With the Sol gradually sinking against the dollar the prices of things for poor people are likely to go up and Castillo may recognise his policies are harming people who he says he wants to help.

He may try the absurdity of price controls and see shortages instead, however.

He also has to navigate a way forward with the Chinese Communist Party who don't expect to pay a lot more tax on their copper interests.

Looking at this:


I would say Castillo has taken the Sol down from 27 US cents to 24.5c The general political instability was taking it down gradually, but this has accelerated.

Peru's main foreign earnings are in mining and oil and gas.

Remember this is against the relatively rapidly inflating US Dollar.

[xxnjr] 14/8/2021 07:56

Thanks jh. Bellido as prime minister seems like a dodgy appointment but at least the president has selected a moderate leftist economist (Pedro Francke) as finance minister. Can't see them following the Venezuelan model to rack and ruin. OTOH Spanish speaking Latam does have a tendency to shoot itself in the foot before jumping off a cliff. Better put my tin hat on ;-)

[johnhemming] 14/8/2021 06:12

>This has gone totally off the radar.
I think it is on the radar, but everyone is wondering what is going to happen in Peruvian politics. Those who were likely to sell on the election of Castillo have sold. People want a bit of certainty to buy.

[xxnjr] 13/8/2021 21:06

only 3 trades today, 2 being mine. This has gone totally off the radar.

[thommie] 13/8/2021 13:15

your welcome. ptal totally undervalued, also due to the recent political risk discussions as you know. I should look up the numbers before posting. Im sometimes a little bit confused, being in many oil companies to remember the exact numbers. but overall it's like I said :) early september then for a decent production rise. only 2 weeks away, but not till enercom presentation...you also have to calculate in that the derivative liability to petroperu changed from minus 30-40mio to plus 30mio when the 2mio bbls are finally sold. including this, ptal looks on a good way being cash flow positive for 2021 despite full development speed at bretana at current oil prices. not bad if it comes true.

[xxnjr] 13/8/2021 12:58

snap! thanks again thommie for filling in the details. Have bought some as these seem overlooked now. Used to be loads of interest here but it's gone off the boil recently. Happy days ahead :)

[thommie] 13/8/2021 12:51

it's 8H. the last one was 7D only deviated, but paid for itself in only 2 months time... the problem is, that because of the cpf 2 not being ready till end q3/q4 plus a water pump failure the recently drilled water injector that raised capacity from 50 000 to 100 000 bwpd didnt have any effect on production so far. all will come together once cpf 2 is finished. new horizontal wells with high initial production plus the capability of getting the 2 shut in wells back on stream plus lift the constrained production numbers because of missing water disposing ability back again. I guess after h8 is finished we will be around 11 000-12 000 bopd. when cpf 2 is done we will see another rise to around 15 000 bopd. add future horizontal wells, as they will be drilling one of these every 40-45days throughout 2021 and 2022. with the 100mio bond they wont be limited by capital problems anymore and can develope bretana piece by piece. I guess cpf 2 is delayed mainly because of covid plus protests last year which made ptal to go into an stayalive only process. I would plan to comission for cpf 3 as soon as possible, as ptal will need further water disposal capacity in the future at this type of field

[xxnjr] 13/8/2021 12:51

They said this in the last ops update

About water

"PetroTal completed its second water disposal well ("3WD"), thereby potentially doubling its produced formation water disposal capacity to approximately 100,000 barrels of water per day ("bwpd") once the CPF-2 facilities are completed.....

.....PetroTal is currently producing a constrained 8,800 bopd and successfully disposing of all the produced formation water into the 2WD and 3WD water disposal wells, however, water disposal pumping capacity is operating at reduced levels. Over the next month, the Company will continue optimizing water disposal pumping capacity to further enhance production rates to 10,000 bopd"

ok, it's 8H drilling.

"Drilling commenced on the Company's next horizontal well (BN-8H) on July 12, 2021. The BN-8H well should be completed by early September at a cost of $12.25 million and is expected to boost field production to over 13,000 bopd".

If above goes to plan; 8000 becomes 10,000 then 13,000?
Noting that "Phase two of PetroTal's central processing facility ("CPF-2") is on track for Q4 2021 completion"

[xxnjr] 13/8/2021 11:31

thanks thommie - very helpful. I had kind of lost track of what was going on at Petrotal. Notwithstanding your water handling comments, the new Hz well could add decent volume here.

4H came on at 6,200
5H came on at 8,250
6H came on at 4,500 to 5,500

If the new well xH (is it 7H? or 8H?) is mainly oil and not water to begin with then could see a decent production uplift here.

Surprised CPF2 not up to full speed yet! Must have been big delays with protests/covid/pipeline shutdowns/low OP.

[thommie] 13/8/2021 11:23

could fit perfectly to the completion of the currently being drilled horizontal well. they did spud it at 12.7. past wells took between 35-45days.production (8000 bopd atm) seems to be dropping 5% every month without cfp 2 being completed and constraint water injection capacity as they cant manage the high water oil ratio of the old wells. I personally dont see them reaching their 2021 full year guidance under these circumstances. they would need to more than double the current production in avg for the rest of the year from september on.