Shares in PetroTal Corp fell 18% to 18p after the group set out cautious guidance for 2026 that puts liquidity preservation and cost control ahead of near-term production growth.
The Peru-focused oil producer said it is targeting average production of 11,750 to 12,250 barrels a day next year, broadly flat and well below the 20,000 barrels a day capacity it has previously highlighted at its flagship Bretaña field.
Capital spending is set at $80 million to $90 million, with much of the budget focused on maintaining operations and resolving issues that disrupted output in 2025.
Management was explicit that the strategy reflects lessons from last year. Problems with drilling rig availability and production reliability hit volumes and undermined confidence, prompting PetroTal to switch to a third-party drilling contractor and defer non-essential spending.
Development drilling at Bretaña is not expected to resume until the final quarter of 2026, limiting the scope for output growth this year.
At $60 Brent, PetroTal expects adjusted EBITDA of about $30 million, supported by lower operating costs and reduced overheads.
The company said it has structured its budget to maintain a minimum cash buffer of $60 million throughout the year, even after funding a substantial erosion control programme at Bretaña.
The cautious tone follows the suspension of the dividend and appears to have disappointed investors hoping for a faster recovery.
While the board stressed that Bretaña remains economically attractive at current oil prices, the market reaction suggests concerns about the length of the transition period and the delay in restoring production towards historical highs.
PetroTal said the 2026 programme is designed to stabilise the business and lay the groundwork for a return to higher output in 2027, but for now the emphasis is firmly on balance sheet resilience rather than growth.