PetroTal (AIM:PTAL), the Peru-focused heavy oil producer, said group production averaged 12,557 barrels of oil per day in the second quarter, bringing the first-half average to 13,726 bopd.
That leaves output roughly 3% ahead of budget through the first six months of the year.
The company closed the sale of its Amazonia-1 drilling rig to an arm's-length third party on 30 June for net cash proceeds of $13.4 million, a transaction expected to trigger an impairment charge of approximately $10 million in the second-quarter results.
Total cash stood at $136.8 million as of 30 June, of which $105.3 million was unrestricted, up from $128.1 million total cash at the end of the first quarter.
"Our production is tracking approximately 3% ahead of budget through the first half of the year," said Manuel Pablo Zuniga-Pflucker, president and chief executive.
PetroTal is now carrying out pump and tubing replacement work on four to five wells at its Bretana field, starting this month and running through the third quarter, timed to finish before development drilling resumes on 1 October.
The company reaffirmed annual production guidance of 12,000 bopd, which it said already accounts for the workover downtime.
PetroTal maintains hedges on 0.7 million barrels for the remainder of 2026, with Brent costless collars set at a $60 floor and $73 ceiling.
The company reports full second-quarter financial results on 6 August.
