PetroTal Corp (AIM: PTAL): Very high production YTD. Re-iterating FY25 guidance
• FY24 production figures had been previously disclosed.• The total cash position of $114.5 mm, of which $102.8 mm was unrestricted, is in line with previous indications. The minimal working capital deficit of US$1.5 mm is also in line with our expectations.
• YTD 2025 oil production has averaged 23,200 bbl/d, comprising 22,600 bbl/d from the Bretana field and 600 bbl/d from the Los Angeles field. This exceeds our forecast of 21.5 mbbl/d as the two last wells at Bretana have delivered very strong performance. The 22H well averaged 4,500 bbl/d during its first 30 days onstream, while Well 23H (brought online for production testing in the last week of February) is flowing naturally at an average of 3,500 bbl/d over its first ten days onstream.
• The company has re-iterated its FY25 production guidance of 21,000 bbl/d to 23,000 bbl/d with US$140 mm capex.
• Drilling at Los Angeles is expected to start in early 2H25. with ongoing negotiations regarding Block 131 terms that could positively impact asset value and the associated spending program.
• At the current share price, the expected FY25 dividend yield is greater than 13%. In addition we believe that the company’s 2P reserves support a production growth of 20-25% in 2026.
• We re-iterate our target price of £1.30 per share.
Valuation
Our 2P Core NAV is £0.99 per share with a ReNAV of £1.27 per share. The possible reserves at Bretana are estimated at ~99 mmbbl. This represents ~90% upside to the YE24 2P reserves of 108 mmbbl at Bretana.
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.
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