14th Jul 2025 09:37
(Alliance News) - PetroTal Corp on Monday said it was on course to hit full-year production targets despite a delay at its drilling programme in Los Angeles.
In response, shares in the Calgary, Canada-based oil and gas development company focused on Peru fell 2.0% at 36.00 pence each in London on Monday morning.
Production averaged 21,039 barrels of oil per day in the second quarter of 2025, up 15% year-on-year, taking average production in the first half to 22,160 bopd, up 20% increase compared to a year ago, the firm said in a statement.
Production at the Bretana oil field in Peru declined around 2,150 bopd relative to the prior quarter, due to a combination of natural declines and previously disclosed pump failures in four producing wells.
PetroTal said three of the pumps have been replaced, restoring 3,300 bopd of production capacity, while replacement of the remaining pump is expected to be completed by the end of July.
Chief Executive Manuel Pablo Zuniga-Pflucker said the results reflect "continued strong operational performance from our core asset base."
The CEO said preparations for the Block 131 drilling program in Los Angeles continue, "although we have experienced delays in the commissioning of our new drilling rig."
Despite the delay, "YTD production continues to track directly in-line with guidance, while our capital expenditures are substantially below budget so far in 2025." Zuniga-Pflucker added.
PetroTal pointed out Block 131 currently represents less than 5% of production, and said the delay is not expected to materially impact 2025 production guidance.
As of June 30, PetroTal's 2025 year-to-date capital expenditures were around USD40 to USD50 million, the firm said.
Additional details on the remaining 2025 development program, including associated production expectations, will be provided alongside second quarter results on August 7, the CEO said.
In addition, the company reported total cash of USD142.1 million at the quarter end.
By Jeremy Cutler, Alliance News reporter
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