- PetroTal (TSXV:TAL) is set to raise up to C$23.97 million to fund ongoing development efforts at its Bretana oilfield in Peru
- The company plans to issue a total of 141.2 million units at a price of 17 cents each
- These units will be comprised of one common share in the company and half of one common share purchase warrant
- Due to the continued effects of COVID-19 and the suspension of the Bretana oilfield project, the company considered it prudent to strengthen its financial position
- PetroTal (TAL) is currently up 5.26 per cent and is trading at 20 cents per share
PetroTal (TSXV:TAL) is set to raise up to C$23.97 million to fund ongoing development efforts at its Bretana oilfield in Peru.
The company, which is also listed on the AIM of the London Stock Exchange, plans to issue a total of 141.2 million units at a price of 17 cents each. These units will consist of one common share in the company and half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of 27.2 cents, exercisable over a period of three years from the date of issuance. Such a price represents a 60 per cent premium over the placement price of the units.
The financing comes amid the continued shutdown of PetroTal’s Bretana oilfield, the re-opening of which has been hindered by a similarly sustained shutdown of Petroperu SA’s Northern Oil Pipeline.
PetroTal is currently in discussions with Petroperu to re-open the Bretana oilfield, with the anticipation that the pipeline will resume its operations shortly thereafter.
Manolo Zuniga, President and CEO of PetroTal, said that in light of the recent fall in global oil prices and the temporary shut in of the Bretana oil field, the company has sought to strengthen its balance sheet.
“The placing and the arrangement announced with Petroperu today will give PetroTal greater financial strength and sufficient flexibility to prepare for the reopening of the Bretana field, which is expected to occur in July.
“Additionally, the Petroperu arrangement and support by the Peruvian government, demonstrates that Peru provides an excellent investment climate,” he said.
PetroTal (TAL) is currently up 5.26 per cent and is trading at 20 cents per share at 1:19pm EDT.