PetroTal Corp (TSX-V:TAL, OTCQX:PTALF, AIM:PTAL) shares fell nearly 5% after it announced an illegal and violent river blockade against vessels providing services to the company's operations in Peru.
The company said the Indigenous Association for Development and Conservation of Bajo Puinahua (AIDECOBAP) initiated the blockade on 3 June 2023 in the Puinahua Canal, posing a threat to vessel crew and local residents. It noted that the blockade disregards the recently signed agreements that ensure transparent and fair allocation of social fund resources, with over US$8mln already accumulated in a restricted bank account.
In a statement, PetroTal - which is focused on developing oil assets in Peru, with the Bretana oil field in Block 95 as its flagship asset - said it is calling for an immediate and peaceful end to the blockade to resume safe river transportation operations as agreed upon in the working table committee.
The river blockade coincides with planned production reductions, allowing PetroTal to connect existing infrastructure and implement modifications for future oil production. Prior to the field installation work, the company's oil production for June 2023 averaged around 10,000 barrels of oil per day. The field will be shut down for approximately five days starting 8 June 2023, impacting the company's oil production forecast for the year.
Around 10.05am, Petrotal shares were down 4.8% at 40p.