CALGARY and HOUSTON, Feb. 28, 2019 /CNW/ - PetroTal Corp. ("PetroTal" or the "Company") (TSX-V: TAL and AIM: PTAL) is pleased to announce that the BN 95-2-2-2XD oil development well (the "well") commenced drilling operations on February 26, 2019. 

The well is to be completed as a producer in the Vivian formation in the northern portion of the Bretaña structure, progressing the first phase of development of the Bretaña oilfield.  The well will be directionally drilled to 3,040 meters total depth and will take up to 45 days to drill and complete.  The well is the first in a program of three new producers designed to boost production to over 5,000 barrels of oil per day by mid-year 2019.  

In addition to the primary objective of completing the well as an oil producer in the Vivian Formation, the drilling plan includes a deeper exploration section to test a secondary objective in the underlying Chonta formation.  The Chonta formation has been a secondary producer of oil in the fields north of Bretaña.

Subsequent to the evaluation of the Chonta formation, the well will be completed as a vertical producer in the Vivian formation and later sidetracked as a horizontal producer when appropriate.  This will also allow us to compare this well's performance with the existing horizontal producer and the two remaining horizontal completions to be drilled in 2019. 

Manolo Zuniga, President and Chief Executive Officer, commented:

"Drilling the second oil producer at the Bretaña oil field is an important step forward as the field development gathers momentum.  The main focus of the drilling campaign is the Vivian formation, which has a gross thickness of approximately 300 feet with 100 feet of oil column at the crest of the structure. The production and pressure data from the initial vertical completion, complemented with the follow up two horizontal oil wells planned for the field in 2019, will aid Netherland Sewell & Associates, Inc., our independent reserves evaluators, to properly determine the size of the oil pool and potential recovery factor.  While the Chonta formation is a deeper pool exploration target, any commercial discovery there will be impactful to the Company.  The Chonta formation has produced commercial quantities of light oil from fields to the north of Bretaña, and a discovery would add synergistic reserves to the Bretaña field."

READER ADVISORIES 

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; drilling and completion activities and the results of such activities; the ability of the Company to achieve drilling success consistent with management's expectations; anticipated future production and revenue; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside,  prevailing commodity prices and the actual prices received for PetroTal's products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company's growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2017 and management's discussion and analysis for the three and nine months ended September 30, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: Estimates of production included in this press release are based upon an independent assessment completed by Netherland Sewell & Associates, Inc., a qualified independent reserves evaluator as defined in Canadian Securities Administrators' National Instrument 51‑101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), with an effective date of June 30, 2018 and prepared in accordance with the Canadian Oil and Gas Evaluation Handbook and the standards established by NI 51-101.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production, and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about PetroTal's anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE PetroTal Corporation

Copyright 2019 Canada NewsWire

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