PetroTal Corp., Calgary and Houston, will continue to develop its Peruvian acreage in 2020 with a planned capital budget of $99 million. The company expects 2020 average production to be 12,500-14,500 bopd with an average target of 13,500 bopd.
Based on horizontal wells 5H and 4H in Bretana oil field on Block 95 (100% working interest) in late 2019, the company will drill four new horizontal oil production wells and a second water disposal well (OGJ Online, Oct. 21, 2019). The new horizontal wells will have an average cost of $13 million/well, will include longer lateral sections (> 1,000 m), and will be completed with automatic inflow control devices. To accommodate associated water production, another water disposal well will be drilled in the western flank of the field at a cost of $9 million, inclusive of a coring program to further refine Bretana’s oil-in-place estimates.
The second phase of the central processing facilities (CPF-2) has been accelerated for commissioning in late August and is now designed for a nominal processing capacity of 15,000 bopd which will enable total field facility capacity to handle about 24,000 bopd. The CPF-2 estimated investment will be reduced to $22 million--$5.5 million less than the original estimate. Enhancements to the loading dock to handle larger oil volumes will require $9 million.
The remaining capital investments include the environmental drilling permit for the Constitución prospect in Block 107, an environmental seismic permit over the Envidia prospect and other leads in Block 95, and abandonment costs for a legacy asset. Some $8 million of the 2020 budget represents projects carried forward from 2019, with about $4 million carried forward for the completion and commissioning of the first phase of the central processing facilities (CPF-1).
