PetroTal rises as Brazil river blockade is lifted

PetroTal announced the reopening of river transportation to its operating area on Thursday, after a local conservation organisation removed its blockade.

The AIM-traded firm said that on 14 December, the Asociacion Indigena de Desarrollo y Conservación de Bajo Puinahua (AIDECOBAP) removed the river blockade to allow oil barge transportation access in and out of its operating area.

It said the reopening coincided with “positive working table discussions” also held on 14 December, where the Junta of Authorities of Puinahua, Perupetro, and PetroTal also participated.

With the reopening of river access, the Brazilian export route was now available, the board confirmed.

Production ramp-up was starting over the coming days, and was expected to reach around 18,000 barrels of oil per day for the rest of December.

Including the social downtime since late November, the company estimated fourth quarter oil production levels to average between 8,500 and 9,500 barrels per day.

“We are pleased the Puinahua Channel has reopened and believe the forthcoming addendum incorporating the 2.5% social trust fund to the Block 95 Licence contract will provide long term stability and a material quality of life enhancement to the communities of the Puinahua District,” said president and chief executive officer Manuel Pablo Zuniga-Pflucker.

At 1435 GMT, shares in PetroTal were up 8.87% at 40.5p.

Reporting by Josh White for Sharecast.com.