PetroTal meets production targets as it continues work at Bretana

The AIM-traded firm said that, following completion of the well, it also successfully converted the existing water disposal well - BN 95-1W - into an oil producer, renamed the BN 95-1.

It said the initial production rate at BN 95-1 of 2,700 barrels of oil per day exceeded management expectations.

Current production approximated 5,500 barrels of oil per day, with total field production in August averaging around 5,000 barrels of oil per day, as expected.

The company also said it had spud the BN 95-4 well - a development oil well planned with a horizontal completion.

“Continued execution at Bretaña and stable production above 5,000 barrels of oil per day should give confidence to all stakeholders in our ability to unlock value,” said PetroTal president and chief executive officer Manolo Zuniga.

“The water disposal injectivity test rate of approximately 40,000 barrels of water per day shows just how permeable the Vivian formation is.

“It also allows us to optimize our capital budget and push our next water disposal well to next year, allowing us to focus on oil producing wells in next year's capital budget.”

Zuniga said the re-completion of BN 95-1W into an oil producer, at a capital cost of around $2.3m, provided a payout in less than 30 days and was an “excellent example” of capital efficiency.

“With current production of 5,500 barrels of oil per day, we expect to meet our quarterly target of 5,000 barrels of oil per day for the third quarter.

“We have spud the BN 95-4 well and we are hopeful that this scheduled horizontal completion, with new technology to keep water cuts at lower levels during the initial months, will add to the existing production base, as well as provide valuable information to evaluate reserves at year-end 2019.”