PetroTal renews share buyback program to boost value

Published 30/05/2025, 07:22
PetroTal renews share buyback program to boost value

CALGARY, AB and HOUSTON, TX - PetroTal Corp. (TSX:TAL, AIM: PTAL, OTCQX: PTALF), an oil and gas company with operations in Peru, announced today the renewal of its share buyback program, following the approval by the Toronto Stock Exchange. The normal course issuer bid (NCIB) is set to commence on June 3, 2025, and will remain in effect until no later than June 2, 2026.

The company plans to repurchase up to 45,776,656 common shares, which represents approximately 5% of its 914,988,946 issued and outstanding common shares as of May 26, 2025. The buyback initiative is intended to enhance long-term shareholder returns and is based on the belief that the company’s share price may not always reflect its inherent value.

PetroTal’s management contends that buying back shares at times when they believe the market price is undervalued will lead to improved per-share metrics and, consequently, an increase in the value of the remaining shares.

Shares purchased through the NCIB will be made through the facilities of the TSX, alternative trading systems in Canada, if eligible, and AIM, a market operated by the London Stock Exchange (LON:LSEG). These transactions will adhere to regulatory requirements and will be conducted at market price or through other permissible means under securities laws.

The daily purchase limit on the TSX is set at 163,942 common shares, subject to certain conditions, including a provision that allows for one block purchase per calendar week that exceeds this limit.

PetroTal has also renewed an agreement with Stifel Nicolaus Europe Limited to manage the buyback program on its behalf. Additionally, the company has entered into an automatic purchase plan with Stifel, which permits share purchases during periods when the company is not normally allowed to buy shares due to regulatory restrictions or self-imposed blackout periods.

During the previous NCIB, which ran from May 23, 2024, to May 22, 2025, PetroTal repurchased a total of 5,361,533 common shares at an average price of approximately USD $0.4669 per share.

PetroTal, headquartered in Calgary, Alberta, focuses on developing oil assets in Peru and has been the largest crude oil producer in the country since early 2022. The company emphasizes safe and cost-effective development of its assets while actively pursuing community-sensitive energy production.

The information in this article is based on a press release statement by PetroTal Corp.

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