In its September 7 update, PetroTal, domiciled in Calgary, reported an executed agreement with Perupetro to amend the Block 131 licence covering Peru’s Los Angeles field.
Qualifying incremental Cushabatay production would face royalty tiers of 5%, 9% or 15%, depending on Basket Price. PetroTal estimated approximately 60% of field production at disclosure would qualify; the remaining 40% retains a 23.5% royalty.
It reported a commitment to drill two new Block 131 wells in the next two years. If the wells are not drilled within that stated period, it says the royalty on all Block 131 production reverts to 23.5%.
The benefit depends on eligible volumes and future drilling. The release leaves the calendar deadline and price thresholds unstated.