PetroTal Announces Updated Corporate Presentation and TSX Venture Exchange Recognition

Selected as the 2020 Venture 50 Top Performing Energy Company

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - February 27, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company"), the Peruvian focused E&P company, is pleased to announce that an updated corporate presentation is now available on the Company's website at www.petrotal-corp.com. Additionally, PetroTal is delighted to be recognized as one of the top 50 performing TSXV-listed issuers, ranking first in the energy industry sector.

The 2020 Venture 50

The 2020 Venture 50 is an annual program of the TSX Venture Exchange that recognizes the top performing TSXV-listed companies from five industry sectors. The 2020 Venture 50 winners are chosen based on 2019 annual performance for market capitalization growth, share price appreciation and trading volume. A video featuring PetroTal can be found at https://tmxmatrix.com/company/TAL/story. For more information and the full 2020 Venture 50 ranking, visit:www.tsx.com/venture50.

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is the Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, six months after acquisition, and within 18 months has exceeded the initial 10,000 bopd goal. Additionally, the Company has large exploration upside and is actively engaged to find a partner to drill the Osheki prospect and other prospects in Block 107. The Company's management team has significant experience in developing and exploring for oil in all of Peru's oil producing basins and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field. More information on the Company can be found at www.PetroTal‐Corp.com.

For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:

Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101

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

Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643

Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer
T: 44 (0) 207 409 3494

Numis Securities Limited (Joint Broker)
John Prior / Emily Morris
T: +44 (0) 207 260 1000

Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Nicholas Rhodes / Ashton Clanfield
Tel: +44 (0) 20 7710 7600

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning PetroTal's assessment of future plans and operations for the Company. When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by PetroTal. Although PetroTal believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: PetroTal may not obtain the required approvals from the TSX Venture Exchange and other factors more fully described from time to time in the reports and filings made by PetroTal with securities regulatory authorities. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2018 and management's discussion and analysis for the three and nine months ended September 30, 2019 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.

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.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52879


TSX Venture Exchange Announces the 2020 Venture 50

February 20, 2020
TSXV's top performing companies to celebrate with market open and closing ceremonies on Friday, February 21

February 20, 2020 (TORONTO) – TSX Venture Exchange (TSXV) is pleased to announce the 2020 Venture 50, the exchange's flagship annual program showcasing the top performing listed companies from five industry sectors: Clean Technology and Life Sciences, Diversified Industries, Energy, Mining, and Technology.

Representatives of the 2020 Venture 50 companies will join TMX executives tomorrow, February 21 at two events to celebrate the achievement: a market open ceremony, at 9:30 a.m. EST in Toronto, and a market close ceremony at 4:00 p.m. EST in Vancouver. The 2020 Venture 50 winners were selected based on year-over-year performance across three equally-weighted criteria: market capitalization growth, share price appreciation and trading volume for the year ended December 31, 2019.

"We are especially proud to recognize this year's Venture 50 winners, a diverse cross-section of visionary, early-stage companies who have performed well during challenging market conditions," said Brady Fletcher, Managing Director and Head of TSX Venture Exchange. "Together, we celebrate these compelling success stories and many more across TSXV, the foundation of the world's premier two-tiered capital formation ecosystem and an engine of opportunity for issuers and investors alike. Looking ahead, we strongly believe that private sector investment is key to the long-term vitality of Canada's economy and we remain fiercely committed to advocating on behalf of our entire listed issuer client base."

2020 Venture 50 Rankings
This year's overall #1 ranked Venture 50 company is dynaCERT Inc. (DYA), a Canadian clean technology company engaged in the design, engineering, testing, manufacturing and distribution of a transportable hydrogen generator system.

The top performing 2020 Venture 50 companies from each industry sector are:

Clean Technology & Life Sciences dynaCERT Inc. (DYA)
Diversified Industries Well Health Technologies Corp. (WELL)
Energy PetroTal Corp. (TAL)
Mining BTU Metals Corp. (BTU)
Technology Score Media and Gaming Inc. (SCR)

For the full 2020 Venture 50 ranking, methodology and profile videos of companies included in the ranking, visit: www.tsx.com/venture50

For Market Openings and Closings: Media may pick up a feed from the TOC (television operations centre) for all market open/close ceremonies. The feed is named TSX Transmit 1 (SD-SDI) and is produced at the TMX Broadcast Centre and sent live to the TOC. The client moves into position for the market open/close ceremony at approximately 9:27 a.m. ET/3:57 p.m. ET and the markets will open/close with the sound of a siren (the traditional market open/close on Toronto Stock Exchange) at 9:30 a.m. ET/4:00 p.m. ET.

This news release is not, and should not be construed as an invitation to purchase securities listed on TSX Venture Exchange. TMX Group and its affiliates do not endorse or recommend any of the referenced securities nor should any statement in this news release be construed as advice regarding a broad investment strategy. Please seek professional advice to evaluate specific securities. Listing on TSX Venture Exchange does not guarantee the future performance of a security or an issuer. TMX, TMX Group, Toronto Stock Exchange, TSX, TSX Venture Exchange, TSX Venture 50 and TSXV are trademarks of TSX Inc.

About TMX Group (TSX:X)

TMX Group operates global markets, and builds digital communities and analytic solutions that facilitate the funding, growth and success of businesses, traders and investors. TMX Group's key operations include Toronto Stock ExchangeTSX Venture ExchangeTSX Alpha ExchangeThe Canadian Depository for SecuritiesMontréal ExchangeCanadian Derivatives Clearing Corporation, and Trayport which provide listing markets, trading markets, clearing facilities, depository services, technology solutions, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across North America (Montréal, Calgary, Vancouver and New York), as well as in key international markets including London and Singapore. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter: @TMXGroup.

For more information, please contact:

Catherine Kee
Senior Manager, Corporate Communications & Media Relations
TMX Group
416-814-8834
catherine.kee@tmx.com


PetroTal Announces 2019 Year-End Oil Reserves and Operational Update

20% increase in 1P Reserves to 21.5 million barrels and 21% increase in 2P Reserves to 47.7 million barrels

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - February 18, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company"), the Peruvian focused E&P company, is pleased to announce the results of its 2019 year-end reserve evaluation by Netherland, Sewell & Associates, Inc. ("NSAI") for the Bretaña oil field, operated 100% by PetroTal, and to provide an update on current activity and production. All currency amounts are in United States dollars (unless otherwise stated), and comparisons refer to December 31, 2018.

HIGHLIGHTS:

  • Proved ("1P") reserves increased by 20%, to 21.5 million barrels ("mmbbl") from 17.9 mmbbl, Proved plus Probable ("2P") reserves increased by 21% to 47.7 mmbbl from 39.4 mmbbl and Proved plus Probable and Possible ("3P") reserves increased by 8% to 84.8 mmbbl from 78.7 mmbbl;
  • Related to 2019 oil production of 1.5 mmbbl, reserve additions replaced 240% in 1P reserves, 553% in 2P reserves and 407% in 3P reserves; Bretaña's reserve life index for 1P and 2P reserves is now 7.7 years and 17.0 years, respectively;
  • Net Present Value (before tax, discounted at 10%) (NPV-10) is calculated at $434 million ($20.19/bbl) for 1P reserves, $1.1 billion ($23.02/bbl) for 2P reserves and $1.9 billion ($22.11/bbl) for 3P reserves;
    • Using the 2019 year-end Brent oil price strip, NPV-10 is calculated at $280 million for 1P reserves, $722 million for 2P reserves and $1.2 billion for 3P reserves;
  • The successful 2019 development program combined with all future development and abandonment costs represent total finding and development costs of $12.04/bbl for 1P reserves, $5.32/bbl for 2P reserves and $4.06/bbl for 3P reserves;
  • Original oil in place ("OOIP") estimates for each category of reserves have also increased, with the 2P estimate increasing from 329 mmbbl to 364 mmbbl;
  • NSAI attributes a corresponding 2P recovery factor of 13.6%, increased from 12% at year-end 2018;
  • On a 2P basis, this represents a recycle ratio of 6.5 times, based on the total $5.32/bbl finding and development cost relative to a netback of $35/bbl (at $65/bbl Brent oil price);
  • Drilling has commenced for the Bretaña 6H well, planned to have the longest lateral to date with an estimated drill time of 60 days; and
  • Current oil production at Bretaña is approximately 10,000 barrels of oil per day ("bopd").

2019 Year-end Reserves Summary

The summary below sets forth PetroTal's reserves as at December 31, 2019, as presented in the independent reserves report prepared by NSAI. The figures in the following tables have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and the reserve definitions contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). In addition to the summary information disclosed in this announcement, more detailed information will be included in PetroTal's annual information form for the year ended December 31, 2019 (the "AIF") to be filed on SEDAR (www.sedar.com) and posted on PetroTal's website (www.Petrotal-corp.com) in April 2020.

Five Year Crude Oil Price Forecast - NSAI Report

Year-End Forecast: 2020 2021 2022 2023 2024 2025
Brent (USD$/bbl) - January 1, 2020 (1) $66.33 $67.94 $70.06 $71.66 $73.27 $74.57
Brent (USD$/bbl) - January 1, 2019 (1) $68.20 $70.98 $73.35 $75.40 $77.35 $79.40
Year-End Strip projection:
Brent (USD$/bbl) - January 1, 2020 (2) $63.71 $59.37 $57.32 $56.70 $57.06 $57.72

 

(1) The oil price projections used by NSAI are based upon an average of three December 31, 2019 forecasts of Brent Crude futures prices prepared by Canadian independent consultants.

(2) Represents the forward strip oil price as at December 31, 2019, escalating at 2% per year after 2025.

Year-End Crude Oil Reserves (mmbbl)

CATEGORY 2019 2018 Change
Proved
    Developed Producing 11.2 1.6 600%
    Undeveloped 10.3 16.3 -37%
Total Proved 21.5 17.9 20%
Probable 26.2 21.5 22%
Total Proved plus Probable 47.7 39.4 21%
Possible 37.1 39.3 -6%
Total Proved plus Probable & Possible 84.8 78.7 8%

 

Represents gross and net barrels since PetroTal owns a 100% working interest and a 100% net revenue interest in these properties. Royalties are paid from sales proceeds

Year-End Net Present Value at 10% - Before Tax ($ millions)

CATEGORY 2019 2018 Change
Proved
    Developed Producing $202 $52 287%
    Undeveloped $232 $99 134%
Total Proved $434 $151 187%
Probable $665 $385 72%
Total Proved plus Probable $1,098 $536 105%
Possible $777 $718 8%
Total Proved plus Probable & Possible $1,875 $1,254 50%

 

Year-End Net Asset Value ("NAV") per Share

CATEGORY Dec. 31, 2019 Dec. 31, 2018
NAV per share US$/sh CAD$/sh US$/sh CAD$/sh
Proved $0.65 $0.87 $0.28 $0.37
Proved plus Probable $1.63 $2.17 $0.72 $0.96
Proved plus Probable & Possible $2.79 $3.72 $1.00 $1.33

 

Represents NPV-10 divided by common shares issued as of December 31 of each respective year. Canadian share prices are converted at the respective year end foreign exchange conversion rates.

Reserve Life Index ("RLI")

CATEGORY Dec. 31, 2019 (1)
Proved 7.7 years
Proved plus Probable 17.0 years
Proved plus Probable & Possible 30.3 years (2)

 

(1) Based on 2019 year-end reserves divided by average Q4 2019 production of approximately 7,757 bopd, annualized.
(2) The license for Block 95 expires in 2041.

Future Development Costs

The following information sets forth development and abandonment costs deducted in the estimation of PetroTal's future net revenue attributable to the reserve categories noted below:

Proved $124 million
Proved plus Probable $194 million
Proved plus Probable & Possible $299 million

 

The future development and abandonment costs are estimates of capital expenditures required in the future for PetroTal to convert the corresponding reserves to proved developed producing reserves.

OPERATIONS UPDATE

The Company commenced drilling the Bretaña 6H well on February 17, 2020, following successful completion of the annual rig maintenance program. This well will take approximately 60 days to drill and complete and is expected to have a 1,100-meter lateral section; longer than the 5H (863 meters) and 4H (500 meters) wells. Following 6H, the Company will drill a second water disposal well followed by three other horizontal oil wells. PetroTal's current oil production is approximately 10,000 bopd. Production has fluctuated during the commissioning of the Central Processing Facility which commenced in late December and is now nearing completion.

Manolo Zuniga, President and Chief Executive Officer, commented:

"Following the Company's successful drilling campaign in 2019, we are very pleased to see a meaningful upgrade of reserves in the 1P and 2P categories. PetroTal is glad to see that NSAI's 2P OOIP estimate now approximates our internal estimate. We are confident that future production data will substantiate the higher recovery factors, and in the end, all of the above serves to create value for our stakeholders.

We look forward to achieving further growth in 2020, with new oil wells and increases in recovery factor, and I would like to sincerely thank our team, as well as our shareholders for their ongoing support of PetroTal."

Qualified Person's Statement

Estuardo Alvarez-Calderon, the Company's Vice President, Exploration and Development, who has over 35 years of relevant experience in the oil industry, has approved the technical information contained in this announcement. Mr. Alvarez-Calderon received a Bachelor of Science degree in Geology from the University of Texas at Austin and is registered on the Texas Board of Professional Geoscientists.

The recovery and reserve estimates provided in this news release are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than, or less than, the estimates provided herein. In certain of the tables set forth below, the columns may not add due to rounding.

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL) (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is the Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, six months after acquisition, and within 18 months has exceeded the initial 10,000 bopd goal. Additionally, the Company has large exploration upside and is actively engaged to find a partner to drill the Osheki prospect and other prospects in Block 107. The Company's management team has significant experience in developing and exploring for oil in all of Peru's oil producing basins and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field. More information on the Company can be found at www.PetroTal‐Corp.com.

For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:

Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101

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

Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643

Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer
T: 44 (0) 207 409 3494

Numis Securities Limited (Joint Broker)
John Prior / Emily Morris
T: +44 (0) 207 260 1000

Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Nicholas Rhodes / Ashton Clanfield
Tel: +44 (0) 20 7710 7600

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning PetroTal's assessment of future plans and operations for the Company. When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by PetroTal. Although PetroTal believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: PetroTal may not obtain the required approvals from the TSX Venture Exchange and other factors more fully described from time to time in the reports and filings made by PetroTal with securities regulatory authorities. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2018 and management's discussion and analysis for the three and ninex months ended September 30, 2019 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.

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.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52496