PetroTal Corp (LSE:PTAL) shares plummeted, losing 26% to 26.94p in early deals, after the London-listed oil and gas firm suspended its quarterly dividend and flagged reduced production expectations for 2026.
The company said it continues to face delays in resuming its development drilling programme at the Bretana field in Peru.
PetroTal said production is likely to average between 12,000 and 15,000 bopd next year, depending on when drilling restarts.
Chief executive Manuel Pablo Zuniga-Pflucker said that whilst PetroTal's financial and operational results remained strong, the company is facing a number of challenges.
Dividends will be suspended for "the time being", the PetroTal CEO noted, as the firm seeks to refine its development plan and finalise a 2026 budget.
"We believe it is prudent to preserve liquidity as we evaluate the optimal development plan for the Bretana field. We thank our shareholders for their ongoing support and look forward to providing additional details with our 2026 budget in January," he said.
In results for the three months ended 30 September, PetroTal reported production of 18,414 bopd and adjusted EBITDA of $31.6 million. It ended the period with total cash of $141.5 million.