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(Sharecast News) - PetroTal reported slightly lower quarter-on-quarter production in the first quarter of 2026 on Tuesday, while maintaining a strong cash position supported by higher oil prices.
The AIM-traded firm said group production averaged 14,907 barrels of oil per day in the quarter, down 2% from the prior three months, with 14,490 daily barrels produced from the Bretana field and 417 from the Los Angeles field.
Output at Bretana continued to be constrained by water reinjection capacity, currently at around 170,000 barrels of water per day, while the company said it was also planning maintenance work on three horizontal wells, potentially in the second quarter.
"I am pleased to report that PetroTal delivered a strong start to 2026, with average production in the first quarter of approximately 15,000 barrels of oil per day, slightly ahead of our internal expectations," said president and chief executive Manuel Pablo Zuniga-Pflucker.
He added that the company's financial position remained robust, supported by favourable pricing.
"This performance has allowed us to maintain $128.1m of total cash, which has been further supported by a constructive commodity price environment, with our sale prices averaging approximately $90.00 per barrel in March."
PetroTal ended the quarter with total cash of $128.1m, including $104.2m of unrestricted cash, compared with $139.1m at the end of 2025.
Trade receivables increased to $86.5m from $62.1m at year-end, while payables fell to $51.5m from $60.4m.
Looking ahead, the company said its near-term focus was on advancing development at the Bretana field, including securing a contract with a third-party drilling contractor.
A drilling rig was expected to be mobilised in the coming months, with drilling activity targeted to resume by October.
"We are in the final stages of securing a contract with a third-party drilling contractor and expect to mobilise a rig to the field in the coming months, with drilling activities targeted to resume by October," Zuniga-Pflucker said.
PetroTal also confirmed it had hedged around 0.9 million barrels of production for the rest of 2026 using costless collars, with an average Brent floor price of $60 per barrel and a ceiling of $80.50 per barrel, rising to a cap of $100.50 per barrel.
As of 10 April, those hedges had a negative fair value of $8.6m.
At 1509 BST, shares in PetroTal Corporation were down 3.45% at 28p.
Reporting by Josh White for Sharecast.com.
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