2nd Dec 2024 14:29
(Alliance News) - PetroTal Corp on Monday said it has completed the acquisition of a 100% working interest in Peru's Block 131 for USD5.0 million.
The Calgary, Canada-based firm focused on oil and gas development in Peru said the Los Angeles field at Block 131 produced an average of 817 barrels of light oil per day in the year to the end of September.
PetroTal said the onsite infrastructure was built to accommodate up to 5,550 barrels of oil per day "providing a clear runway for production growth and improved unit operating cost structure".
The company said it bought Block 131 by purchasing Cepsa Peruana SAC, which represents the Peruvian business unit of Compania Espanola de Petroleos SAU, which has recently been renamed to Moeve.
All oil produced at the site is currently sold to PetroPeru, Peru's state-owned oil company.
Chief Executive Officer Manuel Pablo Zuniga-Pflucker said: "The acquisition of Block 131 represents an important milestone for PetroTal, and a pivotal step in the company's growth strategy. Importantly, Block 131 diversifies our production base within Peru, establishing a new platform for future production and reserves growth...Similar to the strategy we have already successfully employed at Bretana, we plan to apply modern drilling techniques at the Los Angeles field, which has significant unutilized facility capacity. We are currently finalizing our development plan for the assets and look forward to providing more details at the appropriate time."
Shares in PetroTal were down 0.1% to 35.70 pence in London on Monday afternoon.
By Michael Hennessey, Alliance News reporter
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