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TICKERS: TAL

Oil & Gas Company Raises 2019 Production Guidance
Research Report

Source:

The factors driving the change are spelled out in a Pareto Securities report.

In a Nov. 25 research note, Pareto Securities analyst Tom Erik Kristiansen reported that PetroTal Ltd. (TAL:TSX.V) raised its full year 2019 production guidance to 11,000-13,000 barrels of oil per day (11–13 Mbbl/d) from 10 Mbbl/d.

Three elements drove the increase, Kristiansen explained. One is the success so far that PetroTal is having with the drilling of 5H, its next production well. Another is strong production from the company's existing wells. The third is PetroTal's progress on increasing its facilities' processing capacity, which is expected to be completed in December 2019.

Kristiansen highlighted that Pareto Securities expected PetroTal's share price to rise on the guidance news given that the primary question about PetroTal is its ability to successfully ramp up production and given that its stock was still trading at a price:net asset value multiple of 0.5 times at the Brent price of US$65 per barrel.

Pareto Securities has a Buy rating and a CA$0.50 per share target price on PetroTal.

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Disclosures from Pareto Securities AS, PetroTal, November 25, 2019

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