Core Insights - PetroTal Corp. reported a 21% year-over-year increase in average production, reaching 18,414 barrels of oil per day (bopd) in Q3 2025, despite production challenges at the Bretana field [2][4] - The company paid a quarterly dividend of $0.015 per share, totaling approximately $45 million in returns to shareholders year-to-date [2] - As of September 30, 2025, PetroTal had total cash of $141.5 million, with $108.8 million being unrestricted [2][8] Production and Operations Update - Group production averaged 18,414 bopd in Q3 2025, with 17,938 bopd from the Bretana field and 476 bopd from the Los Angeles field [4] - Bretana field production decreased by approximately 2,600 bopd from the previous quarter but increased by about 2,800 bopd compared to Q3 2024 [4] - Cumulative annual production through September 30 was over 5.7 million barrels, a 21% increase from the first nine months of 2024 [4] Challenges and Remedial Actions - The Bretana field has been producing below capacity since mid-August due to leaks in production tubing, leading to the shut-in of five wells [5] - In response, PetroTal mobilized a service rig to address the issues and plans to restore production by the end of October [5] - Production is expected to ramp up in November and December as shut-in wells are brought back online, with no change to the 2025 annual average production guidance of 20,000-21,000 bopd [5] Cash and Liquidity Position - PetroTal ended Q3 2025 with total cash of $141.5 million, an increase in unrestricted cash from $99.3 million at the end of Q2 2025 [8] - The company had approximately $32.7 million in restricted cash, primarily related to an escrow account for a loan [8] - Accounts payable and receivable were approximately $51.9 million and $56.6 million, respectively, showing a decrease from the previous quarter [9] Hedging and Financial Strategy - PetroTal did not initiate new production hedges during Q3 2025 but maintains hedges on approximately 1 million barrels for the period from October 1, 2025, to March 30, 2026 [10] - The existing hedges have a Brent floor price of $65.00 per barrel and a ceiling of $82.50 per barrel, with a cap of $102.50 per barrel [10] Future Developments - The erosion control project at Bretana is progressing, with construction activities ongoing [6] - The company is preparing to import its owned drilling rig to Peru in Q1 2026, with development drilling expected to resume in Q2 2026 [7]