AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Target average production of 21,000 - 23,000 bopd, a 24% increase from 2024.
- Capital investment of $140 million, focusing on drilling, infrastructure, and erosion control.
- Stable quarterly dividend of $0.015/share, consistent with 2024 levels.
PetroTal Corp. (TSX:TAL) has provided an optimistic update for its 2025 guidance, outlining a solid path for growth, capital investment, and a consistent return to shareholders. The Canadian oil and gas company, which operates in the Bretana and Los Angeles oil fields, is targeting an average production rate of 21,000 to 23,000 barrels of oil per day (bopd) for 2025, marking a 24% increase compared to 2024 levels. This growth in production is expected to be supported by key investments in drilling, field infrastructure, and erosion control.
Key Highlights of PetroTal's 2025 Guidance
For 2025, PetroTal has laid out a robust capital program totaling $140 million, a 14% decrease from the previous year. The focus of this capital spending includes drilling and workover activities, field infrastructure improvements, and erosion protection initiatives.
The company plans to drill four development wells, down from seven in 2024, with $55 million allocated for drilling and workover operations. Additionally, $60 million will be invested in field infrastructure at the Bretana oil field, which includes upgrading fluid handling capacity and building new drilling cellars to support ongoing field expansion.
A significant portion of the capital expenditure ($36.5 million) will go towards erosion control measures at the Bretana field. These measures are vital for protecting the integrity of the field’s infrastructure and maintaining stable production. Notably, around 75% of this investment will be classified as operating expenditure (opex), with the completion of these measures expected by the second quarter of 2026.
With these investments, PetroTal expects to maintain its growth trajectory, targeting an annual average production of 22,000 bopd. At this level of production, the company is forecasting an adjusted EBITDA of between $240 million and $250 million, reflecting a 6% increase over 2024's adjusted EBITDA. It is important to note that this projection is net of approximately $30 million in non-recurring erosion control expenses that will be allocated to operating costs.
The company's guidance assumes a Brent oil price of $75 per barrel, slightly lower than the 2024 average of $79.80 per barrel. Despite this, PetroTal remains confident in its ability to achieve strong financial results and shareholder returns. The company has maintained its fully funded quarterly dividend of $0.015 per share, consistent with the previous year, emphasizing its commitment to a stable and predictable return on capital.
In addition to the ongoing development at Bretana and Los Angeles, PetroTal is expanding its exploration efforts in the Ucayali Basin. This includes securing an extension to its Block 107 license contract and signing two new Technical Evaluation Agreements (TEAs) adjacent to Block 131.
PetroTal’s management, led by President and CEO Manuel Pablo Zuniga-Pflucker, expressed confidence in the company’s ability to deliver on its ambitious 2025 goals, driven by strong operational performance and a commitment to delivering value to its stakeholders.
