It’s always cheery news when petroleum companies, however big or small, report positive new developments. Monday, Calgary-based PetroTal Corp. (TSX-Venture:TAL) told investors its second horizontal well, located on the Bretaña field, Peru, is progressing according to budget and timeline.
The well reached the target Vivian formation at the vertical depth of 2,696 metres and 700 metres of the planned 870 metres horizontal section have been drilled, which is inside the main productive oil reservoir. TAL hopes to have the well completed in time for initial production tests in mid-December,.
PetroTal also expects to complete commissioning of the Central Production Facilities during the week of December 22, increasing the nominal production facility capacity to 10,000 barrels of oil per day ("BOPD") and 40,000 barrels of water per day.
After that, management similarly expects that CPF-1 will be able to handle in the order of 15,000 BOPD.
According to CEO Manolo Zuniga, "We are delighted with the progress made on the 5H well and the commissioning of the CPF-1 facilities. We set ourselves an ambitious target of achieving 10,000 BOPD by year-end 2019, so to exceed this is of great testament to the team we have assembled.”
Shares of TAL sold like proverbial hotcakes Monday, reaching noon ET up four cents, or 11.3%, to 40 cents, on volume of 1.4 million shares.
