Petrotal Corp (LON:PTAL) shares more than halved in Thursday morning’s deals after announcing the shut-in of the Bretana oil field in Peru because of infrastructure closure by a public health directive.
The shutdown of the Northern Oil Pipeline, operated by Petroperu, has caused storage capacity limitations.
It also announced new financing initiatives to accommodate impacts from weaker oil prices and sales, with talks underway for ‘multi-year settlement of the contingent liabilities’.
Petrotal noted that because of the drop in crude prices it had a contingent derivative liability of US$42mln (at 31 March).
Capex plans slated for 2020 have been deferred, and, management pay has been reduced by 20%.
In London, Petrotal shares dropped 6.45p or 51.6% to change hands at 6.05p.
Published at Thu, 07 May 2020 08:46:00 +0000-Petrotal shares slump as Bretana field is shut-in