# PetroTal Corp declaring dividend of $0.015 per share

- Link: https://www.directorstalkinterviews.com/petrotal-corp-declaring-dividend-of-0.015-per-share/4121167797
- Published: 2024-08-08T07:59:33+01:00
- Author: Amilia Stone

**PetroTal Corp** (LON:PTAL and OTCQX: PTALF) has reported its operating and financial
results for the three and six months ended June 30, 2024.

Selected financial and operational information is outlined below and should be read
in conjunction with the Company’s unaudited consolidated financial statements and
management’s discussion and analysis (MD&A) for the three and six months ended June
30, 2024, which are available on SEDAR+ at www.sedarplus.ca and on the Company’s
website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars
unless otherwise stated.

**Selected Q2 2024 Highlights**

·    Average Q2 2024 production and sales of 18,290 and 18,050 barrels (bbls) of
oil per day (bopd), respectively, which included a brief river blockade;

·    Generated Q2 2024 EBITDA^((1)) and free funds flow^((1)) of $69.5 million (
$42.31/bbl) and $36.3 million ($22.11/bbl), respectively;

·    Exited Q2 2024 in a strong cash position with $95.9 million in total cash (
$84.1 million unrestricted), with over $93.2 million in current receivables due 
subsequent to June 30, 2024;

·    In early May 2024, PetroTal signed an acquisition agreement to acquire a 100%
working interest in Peru’s Block 131, including the producing Los Angeles field 
for a purchase price of $5 million, subject to closing adjustments and with an effective
date of January 1, 2024;

·    Successfully drilled two new oil wells in the quarter. Well 19H has averaged
over 6,860 bopd over its initial 30 days, placing it in the Company’s top five initial
rate wells and achieving payout in approximately 40 days;

·    Delivered strong operating cost metrics with lifting and variable transportation
costs under $8.00/bbl in the quarter, slightly higher than Q1 2024, and generating
a near 78% net operating income margin in the quarter;

·    Capital expenditures (“Capex”) totaled $38.9 million in Q2 2024 and were focused
on drilling wells 18H and 19H;

·    Completed all regulatory approvals for the Company’s Oleoducto de Crudos Pesados
Oil Pipeline (“OCP”) route to market in Ecuador, onto which oil loading into barges
was subsequently commenced in mid July 2024.  Actual final sale of the pilot oil
is expected in October 2024;

·    Delivered strong Q2 2024 net income of $35.4 million ($0.04/share); and,

·    Paid total dividends of $0.015/share and repurchased 1.2 million common shares
in Q2 2024, representing approximately $15 million of total capital returned to 
shareholders (approximately 3% of June 30, 2024, market capitalization).

(1)   Non-GAAP (defined below) measure that does not have any standardized meaning
prescribed by GAAP and therefore may not be comparable with the calculation of similar
measures presented by other entities. See “Selected Financial Measures” section.

> **Manuel Pablo Zuniga-Pflucker, PetroTal Corp** **President and Chief Executive
> Officer, commented:**
> _“Our Q2 2024 operating and financial results were robust and Q3 and Q4 are now
> underpinned by strong drilling results this quarter.  The 19H well was initially
> producing in excess of 8,000 bopd despite being designed with a shorter horizontal
> section compared to previous drills and has now averaged over 6,800 bopd over 
> the last 30 days._
> _In addition, we are extremely excited about our formal route activation through
> the OCP.  Having completed all the regulatory approvals, the Company is now in
> a position to further diversify its oil sales routes and to allow for offtake 
> optionality during the dry season. Activating additional routes to market is a
> priority for the Company and we look forward to sending further updates in the
> fall of 2024._
> _We are expecting to close the Block 131 acquisition later this year becoming 
> the Company’s first diversified production stream with the expectation of significantly
> increasing its light oil production profile in 2025.”_

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