PetroTal Corp (AIM: PTAL): 1Q26 production in line. Rig selected for October drilling
• FY25 production and YE25 net cash were disclosed previously.• 1Q26 production has averaged 15 mbbl/d, including 14.5 mbbl/d from Bretana, in line with expectations.
• The company has selected a rig contractor, with the rig expected to be imported in 2Q26 and drilling to begin in October, consistent with prior guidance.
• Execution of the erosion‑control project is behind schedule, and PetroTal has replaced the existing contractor. A new contract is expected to be awarded by end‑May, at which point updated cost and timing estimates will be provided.
• The delay is not expected to impact field or barge operations.
• PetroTal has received EIA approval for the Bretana North extension, enabling expansion of the surface footprint for drilling and water‑handling facilities.
• The key focus remains the restart of drilling to return to growth from 3Q26.
• We reiterate our £0.55 per share target price.
Valuation
Our 2P Core NAV now stands at £0.49 per share—almost double the current share price—with a ReNAV of £0.58 per share. We forecast aggregate free cash flow of US$20 mm over 2026–2027. PetroTal’s cash generation is highly sensitive to Brent prices: while our base case assumes US$76/bbl in 2026 and US$70/bbl thereafter, higher prices have a material impact. At US$90/bbl in 2026–2027, cumulative free cash flow would be roughly US$140 mm above our base case, and at US$100/bbl the uplift increases by a further US$80 mm.
PetroTal is an energy company engaged in the exploration for, and development of, crude oil and natural gas in selected areas of the world outside Canada. Co. has interests in four countries, the United Kingdom (offshore and onshore), Romania (offshore and onshore) France (onshore) and the Netherlands (offshore). Each country has established hydrocarbon basins, extensive infrastructure and attractive contractual and fiscal terms. As of Dec 31 2010, total gross proved plus probable reserves for light or medium oil consisting of 0.010 million barrels, natural gas consisting of 186.101 billion standard cubic feet and natural gas liquids consisting of 0.757 million barrels.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.