First Day of Dealing on AIM

PetroTal Corp.

(“PetroTal” or the “Company”)

First Day of Dealings on AIM

  • Near term production growth and high impact exploration
  • Focused on accelerating Bretaña oil development
  • Debt free balance sheet and a focus on capital discipline

Calgary, Alberta and Houston, Texas24 December 2018 — PetroTal Corp. (TSX-V: TAL; AIM: PTAL), the Peru focused exploration and production company, is pleased to announce that admission to trading of its common shares on the AIM Market of the London Stock Exchange ("AIM") will commence today at 8:00 a.m. (London time) under the ticker symbol PTAL.

The Company's common shares will continue to trade on the TSX Venture Exchange ("TSXV").  For the purposes of the Disclosure Guidance and Transparency Rules, the total number of voting rights in the Company will be 452,963,288. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

PetroTal, the only exclusively Peru focused oil producing company listed in London, has successfully completed admission to AIM, alongside its current listing on the TSX Venture Exchange, in order to take advantage of AIM's liquidity, as well as to access a broader range of institutional investors. The Board believes that this will help expedite unlocking the value of PetroTal’s Peruvian assets as it enters a phase of significant development at its Bretaña assets, aimed at materially increasing production.

Manolo Zuniga, President and Chief Executive Officer, commented:

“We believe the AIM market will give us access to a broader investor base as we enter a period where we are looking to significantly increase our production profile. When PetroTal completed the reverse takeover of Sterling Resources last year and listed the business in Canada, we set forth on a path to put Bretaña on production, and begin growing production in Peru in a material way. With Bretaña now online and having declared commerciality, there should be no doubt about our commitment to building value for shareholders, as well as the country of Peru. We continue to maintain a disciplined approach to capital allocation and currently have approximately $25 million of cash on hand with no debt on the balance sheet, which is sufficient to allow us to maximize value and increase production in the near term. 

Since taking over operations in December 2017, we have put the Bretaña oil field online ahead of schedule, installed and commissioned facilities on time and under budget, and have mobilized a drilling rig to spud the Company’s second oil producer in February.  I would like to take this opportunity to thank our extraordinary team of experienced and hardworking professionals who have been instrumental in the Company’s achievements to date.”

Strand Hanson Limited is acting as Nominated & Financial Adviser on the admission to AIM. Numis Securities Limited and GMP FirstEnergy have been appointed to act as Joint Brokers to the Company going forward.

Please refer to the Company’s AIM Admission Document dated 21 December 2018, which is available on the Company’s website www.petrotal-corp.com, for further information on the Company.

About PetroTal

PetroTal currently has controlling interests in three Peru license blocks: Block 95, which includes the Bretaña oil field, and two exploration blocks, namely Block 107 and Block 133.

The Company has a clear and immediate focus on the development of the Bretaña oil field, where first oil was achieved in June 2018, ahead of schedule, and a full field development programme is envisaged over the next 36 months. The oil field has significant proved and probable (2P) reserves of 39.8 mmbl, based on the independent evaluation completed by Netherland Sewell & Associates, Inc. (“NSAI”) effective as of 30 June 2018.  The Company has established routes to market with current production being barged to, and sold at, the Iquitos Refinery.  Significant exploration potential also exists on this large license block and the Company will be pursuing this upside, along with prospectivity on the two other exploration licenses, namely Block 107 and Block 133. 

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9026

Manolo Zuniga
President and Chief Executive Officer
Mzuniga@Petrotal-Corp.com
T : (713) 609-9101

Mark Antelme / Henry Lerwill
Celicourt Communications
petrotal@celicourt.uk
T : 44 207 520 9261

James Spinney / Ritchie Balmer / Eric Allan
Strand Hanson Limited (Nominated & Financial Adviser)
T : 44 207 409 3494

John Prior / Emily Morris / George Price
Numis Securities Limited (Joint Broker)
T: +44 207 260 1000

Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 20 7448 0200

www.petrotal-corp.com

Presentation of Oil & Gas Information

Estimates of reserves included in this press release are based upon an independent assessment completed by NSAI, a qualified independent reserves evaluator as defined in Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), with an effective date of 30 June 2018, and prepared in accordance with: (a) the Canadian Oil and Gas Evaluation Handbook and the standards established by NI 51-101; and (b) the classification and reporting requirements set forth in the 2018 Petroleum Resources Management System approved by the Society of Petroleum Engineers. For additional information about the Company’s reserves, see the Company’s press release dated 25 October 2018.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements.  More particularly and without limitation, this press release contains forward looking statements and information concerning the PetroTal’s business strategy, objectives, strength and focus, the admission to trading of the Company’s common shares on AIM, the AIM Admission Document and expectations regarding existing and future wells, drilling, production, export routes and revenue in the Bretaña oil field. Statements related to reserves are deemed to be forward-looking statements and forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the reserves can be profitably produced in the future. Specifically, forward-looking information contained herein regarding reserves may include estimated volumes of reserves.

The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices.

Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended 31 December 2017 and management’s discussion and analysis for the three and nine months ended 30 September 2018 which are available on the System for Electronic Document Analysis and Retrieval at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

FOFI Disclosure

This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, future production, balance sheet and cash flow which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

This announcement is not an admission document, a document prepared in accordance with the Supplement to Schedule One of the AIM Rules for Companies or a prospectus. It does not constitute or form part of, and should not be construed as, an offer to sell or issue, or a solicitation of any offer to buy or subscribe for, any securities in any jurisdiction where such offering or solicitation is prohibited by law, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information in the admission document prepared in accordance with the AIM Rules for Companies (the "Admission Document") to be published by PetroTal Corp in connection with the proposed admission of the common shares in the capital of the Company (the "Common Shares") to trading on AIM, a market operated by the London Stock Exchange plc and the public documents that the Company has filed with the various securities commissions or similar authorities in each of the provinces and territories of Canada on SEDAR at www.sedar.com.  

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, JAPAN, SOUTH AFRICA, THE U.S. OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. THE DISTRIBUTION OF THIS ANNOUNCEMENT IN OTHER JURISDICTIONS INCLUDING (WITHOUT LIMITATION) JAPAN, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR THE U.S. (OR TO ANY RESIDENT THEREOF) MAY BE RESTRICTED BY LAW AND THEREFORE PERSONS INTO WHOSE POSSESSION THIS ANNOUNCEMENT COMES SHOULD INFORM THEMSELVES OF AND OBSERVE ANY SUCH RESTRICTIONS. ANY FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF THE SECURITIES LAWS OF ANY SUCH JURISDICTION.


PetroTal Announces Declaration of Commerciality in Respect of the Bretaña Oil Field

Calgary, Alberta and Houston, Texas – December 13, 2018—PetroTal Corp. (“Petrotal” or the “Company”) (TSXV: TAL) an exploration and production company focused on oil assets in Peru, is pleased to announce the Company has notified Perupetro of a declaration of commerciality in respect of the Bretana oil field in Block 95, an important event for the Company as it has focused significant effort and capital to bring this area into commercial production.

The declaration of commerciality in Bretana was a result of the successful ongoing long-term testing and the stability of production. The notification allows the Company’s Peruvian subsidiary to formally record revenue and operating costs on the statement of income, rather than a capital cost reduction.

Manolo Zuniga, President and Chief Executive Officer said:

“This is yet another milestone for PetroTal and is a result of the success of our team. This is both a positive for PetroTal as well as the country of Peru. The declaration of commerciality has positive financial implications for the company, and Peru benefits from having yet another producing company in country that reduces the reliance on oil imports. We have positioned PetroTal to make an even greater impact for the country as we grow production in Peru.”

ABOUT PETROTAL

PetroTal is a publicly-traded independent oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. The Company’s management team has significant experience in developing oil fields in Northern Peru and is focused on safely and cost effectively developing and exploiting the Bretaña oil field in Block 95 and to continue to evaluate the Osheki prospect in Block 107.

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

Manolo Zuniga
President and Chief Executive Officer
Mzuniga@Petrotal-Corp.com
T : (713) 609-9101

http://petrotalcorp.wpengine.com

Mark Antelme / Henry Lerwill
Celicourt Communications
petrotal@celicourt.uk
T : 44 207 520 9261

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: the Company’s objectives; drilling, reactivation, water and other activities and the anticipated costs and results of such activities, including with respect to the Discovery Well; cost controls and savings; anticipated future production and revenue; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2017 and management’s discussion and analysis for the three and six months ended June 30, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: This press release contains metrics commonly used in the oil and natural gas industry, such as netbacks. These terms have been calculated by management and do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare PetroTal’s operations over time. All oil and gas disclosure contained in this press release complies with the requirements of NI 51-101.

References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary.

References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.