LONDON (ShareCast) - (Sharecast News) - PetroTal reported broadly stable year-end reserves for 2025 on Wednesday, with proved and probable volumes little changed year on year despite lower oil price assumptions weighing on reserve values.
According to an independent evaluation by Netherland, Sewell & Associates, the AIM-traded firm's proved (1P) reserves stood at 66.4 million barrels as at 31 December, down 1% from 67.1 million barrels a year earlier, while proved plus probable (2P) reserves were 110.2 million barrels, down 3% from 113.7 million barrels.

Proved developed producing reserves fell 19% to 37.1 million barrels, while proved undeveloped volumes increased 36% to 29.3 million barrels, reflecting revisions to the Bretaña field development plan.

The company produced 6.9 million barrels from the Bretaña field in 2025 and replaced 106% of 1P reserves and 76% of 2P reserves at that asset through technical revisions, without undertaking development drilling during the year.

Bretaña original oil in place estimates remained unchanged at 377 million barrels on a 1P basis and 494 million barrels on a 2P basis.

"PetroTal's 2025 year-end reserves evaluation highlights the underlying strength of our asset base," said president and chief executive Manuel Pablo Zuniga-Pflucker.

He added that the independent evaluator continued to support a 2P original oil in place estimate of 494 million barrels, "unchanged from year-end 2024 and significantly higher than the 329 million barrels estimated when we began development in 2018."

The net present value of proved reserves discounted at 10% before tax declined 33% to $1.15bn, while proved plus probable reserves fell 25% to $1.98bn, reflecting lower forecast Brent price assumptions and higher future development capital.

After tax, proved reserves were valued at $687 million on a PV10 basis, down 39% year on year.

NSAI's five-year average Brent forecast used in the report was $72.23 per barrel as at 1 January, compared with $79.85 per barrel a year earlier.

Proved developed producing reserve life index was estimated at 5.2 years, down from seven years, while 1P reserve life stood at 9.3 years.

Future development costs increased materially following revisions to the Bretaña development plan, with proved category development costs rising to $534m from $192m, reflecting additional production and water disposal wells and higher fluid handling capacity.

The revised plan contemplated 37 and 46 production wells in the 1P and 2P cases respectively, alongside expanded water disposal infrastructure.

On a per-share basis, after-tax PV10 of proved developed producing reserves was estimated at 48 cents per share, compared with 89 cents a year earlier, while 1P reserves were valued at 75 cents per share and 2P reserves at $1.28 per share.

Zuniga-Pflucker said the company was adopting a disciplined capital approach in 2026 but remained confident in the long-term outlook for Bretaña.

"We are focused on protecting value today while preserving the opportunity to grow reserves over time, particularly if stronger oil prices support additional investment."

He said drilling was expected to resume in October.

At 1131 GMT, shares in PetroTal Corporation were down 3.1% at 20.83p.

Reporting by Josh White for Sharecast.com.

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