PetroTal Secures Lower Royalties in Peru Through New Sliding-Scale Regime

PetroTal Corp. has successfully renegotiated its Block 131 License Contract in Peru, resulting in lower royalties on incremental oil production at the Los Angeles field.

The new royalty regime ties payments to a sliding scale of 5%, 9%, or 15% based on oil prices, compared to the original 23.5%. Approximately 60% of current volumes are eligible for the reduced rates, with future production from deeper formations carrying a flat 5% royalty.

In exchange for the new terms, PetroTal has committed to drilling two new wells at Block 131 within the next two years; if not met, the original 23.5% royalty rate will apply to all production.