20th Jan 2026 14:09
(Alliance News) - PetroTal Corp on Tuesday announced expected production for 2026 which will be sharply lower than in 2024, with the price of Brent having fallen sharply since that year.
The Calgary, Alberta-based oil producer recognised that its "operational challenges" in 2025 "have impacted investor confidence".
"PetroTal's 2026 budget is a direct response to that feedback," said Chief Executive Officer Manuel Pablo Zuniga-Pflucker.
The firm targets 2026 production volumes between 11,750 and 12,250 barrels of oil per day, at least 31% lower than 17,785 bopd in 2024. PetroTal had published 2024 results in March 2025.
Further, it targets annual adjusted earnings before interest, tax, depreciation and amortisation of USD30 million for 2026, down 87% from USD237.0 million in 2024, and a Brent price of USD60.00 per barrel, down 24% from USD78.98 in 2024.
"By moving to a third-party drilling provider and deferring non-essential infrastructure spend, we are prioritizing liquidity over near-term production growth. While the decision to suspend our dividend was difficult, this budget confirms it was necessary to navigate the transition through 2026 without compromising the long-term value of the Bretana field," said CEO Zuniga-Pflucker.
Bretana is a large, heavy oil field located in the Maranon Basin in Peru, the company says on its website.
The firm said: "Bretana continues to offer competitive economic returns at USD60.00 oil prices, provided we make the necessary improvements to our cost structure. Our investments this year will help set the stage for PetroTal to restore production output to 20,000 bopd next year."
The firm plans a capital investment of between USD80 million and USD90 million, allowing for the resumption of development drilling at Bretana by the fourth quarter of 2026.
PetroTal shares fell 19% to 17.85 pence each on Tuesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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