Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
PetroTal to acquire 100% interest in Peru's Block 131
(Sharecast News) - PetroTal announced the signing of a definitive agreement to acquire a 100% working interest in Block 131 in Peru on Wednesday, including the producing Los Angeles field, through the acquisition of CEPSA Peruana. The AIM-traded firm said the acquisition, valued at $5m in cash subject to adjustment, was expected to bolster its strategic position and operational capabilities in the region.
It said the strategic rationale for the acquisition included adding low-cost light oil reserves with significant upside potential, estimated between three and 4.9 million barrels of oil.
Furthermore, the acquisition was expected to generate synergies with the Iquitos refinery, enabling PetroTal to increase sales capacity for heavier Bretana crude and potentially realise lower Brent differentials from the combined lighter oil mix sold to Iquitos.
PetroTal's management outlined three near-term operational initiatives for Block 131, including the identification of bypassed oil for low-risk horizontal well locations, potential use of hydraulic pumps to reduce operating costs, and implementation of solutions to lower chemical costs from treating asphaltene.
CEPSA Peru's assets, which include the Los Angeles oil field, had produced around 7.6 million barrels as of 31 March.
The assets were held under a concession agreement expiring in 2037 and were subject to a royalty rate.
All crude oil produced was sold to Petroperu and transported by barge along the Ucayali River to the refinery in Iquitos.
Completion of the acquisition remained subject to regulatory approvals, with the effective date set to be 1 January 2024.
"This is PetroTal's first acquisition since entering Peru in late 2017," said president and chief executive officer Manuel Pablo Zuniga-Pflucker.
"This transaction marks an important step forward in delivering on our ongoing growth vision.
"The assets being acquired are synergistic, highly accretive to the company's current operations and we have immediate plans for development once the transaction is complete. All production from the assets is directed to the Iquitos refinery."
Zuniga-Pflucker said completion of the acquisition would add around 900 barrels of oil per day to the company's current 18,500 dai;ly barrels of Bretana production, with the potential for further upside in the near-to-medium term.
"Furthermore, our operational team is assessing the potential upside in the deeper zones of the Los Angeles field, that were previously penetrated but were not tested.
"Finally, the location of Block 131 is of strategic importance, as it is connected by a 130 kilometre highway to the company's Block 107 prospect.
"We look forward to announcing further updates on this acquisition process in due course."
At 1233 BST, shares in PetroTal Corporation were up 1.29% at 47.1p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.