PetroTal expects and is ready to reopen the Bretana oil field as soon as the ongoing discussions between the communities and the Government of Peru have been ratified, which is expected in the next few days as reported by Government officials. PetroTal commends the efforts of all parties to reach a negotiated settlement that will ultimately benefit the communities, the Peruvian government, and all operating companies, including PetroTal.

On August 28, 2020, the Government of Peru announced a Supreme Decree (“Decree“) approving the financial Gap Closure Plan within a number of provinces in northeast Peru, including Loreto, the area where PetroTal operates the Bretana oil field. PetroTal welcomes the announcement that the Decree provides for a six year financial commitment of approximately US$1.7 billion (6 billion soles) to the communities, of which US$46 million (162 million soles) will be designated for economic development of the localities over the next four months, by the Peruvian government. The Decree specifically addresses the local community participation criteria and takes steps to ensure that the funding process is properly monitored to ensure maximum benefit to the communities. The published Decree can be found at https://www.gob.pe/institucion/pcm/normas-legales/1124063-145-2020-pcm.

Since the announcement of the Decree, which PetroTal strongly supports, government and municipality representatives have been consulting with the community representatives on the Decree. After meeting with the Bretana community in the coming days, it is expected that PetroTal will restart oil production shortly thereafter.

In order to fully support the collective efforts of the communities and the government to reach an acceptable funding solution, PetroTal remains awaiting government agreements. PetroTal acknowledges the efforts at all levels of the Peruvian government to resolve the recent social disruption and to ensure a long term solution is in place to minimize future disruptions. Equally, the Company acknowledges the support received from the Bretana community.

Map source: PetroTal

Bretaña Oil Field

Large oil field with recent first production

3D seismic acquired in 2014
Five wells define structure and continuity of reservoir
100% oil production with nominal gas
First production initiated in June 2018 on time and under budget
Capex of $18.5 million to first oil  – 25% under original budget

Development Plan in place

Enhanced production from first well to 2,000 bopd in November following installation of oil well pump and water treatment and reinjection facilities
Full development targeting plateau >10,000 bopd from 11 oil producing wells in 2020
Infrastructure and export routes in place – established barging and pipeline route to tide-water market

Exploration upside on trend

Additional development drilling should define Bretaña recovery factor from 12% to management’s expected 24%
5 exploration prospects / leads on trend with Bretaña

KeyFacts Energy: PetroTal Peru country profile