- Peru-focused oil company PetroTal booked a first-quarter loss after lower oil prices hurt revenue and prompted it to report a $40.8m derivative liability.

Net losses for the three months through March amounted to $31.5m, compared to losses of $1.6m on-year. Revenue fell to $41.8m, down from $50.5m.

PetroTal said it was confident in its ability to ramp up activity at its Bretana field, ahead of a planned reopening in July, to ensure it would return to normal operating status.

Operations were temporary shut in after the Peruvian government announced lockdown measures on 7 May.

'Despite the challenging macro backdrop, PetroTal achieved a great deal during the first quarter of 2020,' chief executive Manuel Pablo Zuniga-Pflucker said.

'The company successfully drilled the 6H well on time and under the original budget.'

'To date, the well has performed in line with expectations, producing about 4,500 barrels of oil per day for the first 10 days in April 2020.'

'Post-period end, we chose to take decisive action to preserve the company's liquidity position and I am pleased with the results we have achieved to date.'

'We remain on track to restart production at Bretana later this month and I look forward to updating all our stakeholders as we look to resume normal operating conditions in due course.'

At 9:02am: [LON:PTAL] share price was -0.75p at 10.5p

Story provided by