From Flying to Crashing to Take off again

PTAL had an excellent 2019 and was on the verge of taking off in 2020; unfortunately, Covid 19 had a major impact on the oil market and Peru – oil prices crashed, followed by ONP shutdown, followed by social and political unrest. What a crazy year!

Strapped on cash, halted cashflow and flooded with liability, PTAL sadly had to raise at a less than ideal price. I wasn’t too happy about that.

But it appears things have turned in Q4 2020, with ONP re-opening, Brazil export route successful with decent netback, and RBL and Vendor liability discussions in progress.

PTAL plans to resume production to 10000 BOPD in mid January 2021, meaning A LOT of cashflow.

With most concerns out of the way, we might wonder, what’s going to happen with contingent liability, and vendor liability. Lowie reached out to PTAL Management and have the following summarized.

Summary from PTAL:

• Vendors supportive
• Understand issue is community / govt • managing funds carefully
• at full production all obligations can be met quickly
• as 2nd largest producer and plenty of drilling planned vendors know there’s lots more to come.
• global market stability is helping with RBL etc discussions and hopeful will conclude soon

From what we gathered, contingent and vendor liability will be resolved, which is excellent news.

I look forward to a fruitful 2021 for PTAL.