PetroTal Announces Restart of Production at Bretana Oil Field

Initial production rates of over 12,000 bopd

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - July 27, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") is pleased to provide an update on operations at the Bretana oil field which, as previously indicated, recommenced in mid-July.

Highlights

  • PetroTal has implemented stringent testing measures and modified operating procedures to ensure the safety of its workers;
  • The Bretana field restarted operations on July 15th, 2020 and production has returned to pre-shutdown levels of 11,500 barrels of oil per day ("bopd"), exceeding 12,000 bopd when all seven wells are online;
  • Oil deliveries have commenced to the Iquitos refinery and deliveries to the Northern Oil Pipeline ("ONP") at the Saramuro Pump Station are expected to commence in early August 2020; and,
  • Q2 2020 production was approximately 4,180 bopd. Taking into account the field was shut-in since early May 2020, average Q2 2020 production for the period the oil field was producing represented approximately 11,500 bopd.

Bretana Oil Field

On May 7, 2020, PetroTal announced that it had temporarily shut in the Bretana oil field operations in response to a directive issued by the Peruvian government's health department related to COVID-19 prevention, that resulted in the operator of the ONP (Petroperu) having to shut down pipeline operations. The Bretana oil field was producing approximately 11,500 bopd prior to being shut in. PetroTal used this period to perform maintenance operations and effected improvements to the production facilities.

In anticipation of the re-opening of the ONP, Bretana oil production recommenced on July 15, 2020 and achieved over 12,000 bopd when all seven wells were online.

Crude oil production is the basis for royalty calculation purposes by Perupetro, the Peruvian government agency responsible for collecting the royalty payments, and such volumes are reported on its website: https://www.perupetro.com.pe/wps/wcm/connect/corporativo/7318e1ef-aaa2-4c91-8313-7d2090cba5fa/Producci%C3%B3n+l%C3%ADquidos.pdf?MOD=AJPERES&liquidos.

The website reports all crude oil production in Peru, of which the Block 95 reference is the Bretana oil field. The reported crude oil volumes do not include the approximately 4% of natural gasoline blended into the Bretana crude oil to meet the required viscosity specifications, especially those at the ONP; hence oil sales volumes are slightly larger than the crude oil volumes reported by Perupetro.

Oil deliveries have already commenced to the Iquitos refinery and approximately 40,000 barrels are expected be delivered during July 2020.

Oil is being barged to the Saramuro Pump Station ready to be delivered into the ONP immediately at its recommencement of its operations, expected in early August 2020. To manage the Company's inventory and barge storage capacity, Bretana production has been reduced to approximately 8,000 bopd pending the restart of the pipeline.

Workforce and Community Safety

PetroTal has implemented a stringent COVID-19 safety protocol, which has been reviewed and approved by PetroTal's HSE-CSR Board Committee as well as Peru's Health Ministry. PetroTal's protocol includes appropriate distancing, use of facemasks at all times, temperature checks three times a day, rapid tests before entering the field and then in Bretana camp every three days, each person having their own room, constant disinfection of all spaces, and a doctor and two nurses on location to supervise. While the workers from the Bretana community stay at the camp during their rotation, the crew of all oil transport barges do not enter the camp, though they are subjected to the same protocol every time a vessel arrives at Bretana.

Annual General Meeting

PetroTal will hold its annual general and special meeting of shareholders ("AGM") on September 9, 2020. Meeting materials for the AGM will be mailed this week. Further AGM details will be provided in subsequent announcements.

Manolo Zuniga, President and Chief Executive Officer, commented:

"On behalf of PetroTal, I would like to thank the 30 person team that stayed at Bretana during the shut down and ensured all the facilities were properly maintained, which is reflected by how quickly the new 130 person team was able to re-open the oil wells, recommence construction support activities and again reach 12,000 bopd of production. Our commitment is to ensure all stakeholders benefit from the Bretana project, including the local communities that support our Company."

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 its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru with more than 10,000 bopd of production. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field.

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

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

Manuel Pablo Zuniga-Pflucker
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

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

Auctus Advisors LLP (Joint Broker)
Jonathan Wright / Rupert Holdsworth Hunt / Harry Baker
T: +44 (0) 7711 627449

READER ADVISORIES

FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; anticipated future production and production capacity; the Company's ability to remain operating in accordance with developing public health efforts to contain COVID-19; future development and growth prospects; and the timing of the AGM. 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, inventory and barge storage capacity, 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 and availability of required equipment and services. 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. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2019 and management's discussion and analysis for the three months ended March 31, 2020 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.

FOFI DISCLOSURE: This press release contains future‐oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production, production storage capacity, royalties and components thereof, all of 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 approved by management as of the date of this press release and was included 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 Canadian Securities Administrators' National Instrument 51‐101 Standards of Disclosure for Oil and Gas Activities.

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/60533


PetroTal announces First Quarter 2020 Financial and Operating Results

Average Q1 2020 oil production of 9,686 bopd

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - July 9, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company")  is pleased to announce its financial and operating results for the three months ended March 31, 2020 ("Q1 2020").

Selected financial, reserves and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements ("Financial Statements") and management's discussion and analysis ("MD&A") for Q1 2020, which are available on SEDAR at www.sedar.com and the Company's website at www.PetroTal‐Corp.com. Reserve numbers presented herein were derived from an independent reserves report (the "NSAI Report") prepared by Netherland, Sewell & Associates, Inc. ("NSAI") effective December 31, 2019. All amounts herein are in United States dollars ("US$") unless otherwise stated.

Q1 2020 HIGHLIGHTS

The Company reached several key operational and financial achievements as described below:

Q1 2020 Operational Highlights

  • Commenced drilling the BN 95-6H horizontal well (the "6H well") on February 17, 2020. The well reached a lateral length of 1,178 meters and was completed using autonomous inflow control device ("AICD") valves that restrict water inflow. The 6H well came online on April 10, 2020 producing approximately 5,750 barrels of oil per day ("bopd") initially, and achieved average production of approximately 4,500 bopd for the first 10 production days during April;
  • The 6H well was completed on time and under the original $12.6 million budget;
  • The Bretaña oil field reached new record quarterly production of 9,686 bopd and sales of 10,313 bopd. This represents a 25% increase from Q4 2019 production of 7,767 bopd;
  • Completed commissioning of the enhanced central production facilities ("CPF-1") bringing overall oil production capacity to between 16,000 bopd and 18,000 bopd;
  • Announced increases in all reserve categories following 2019 year-end reserves evaluation by NSAI:
  • Proved ("1P") reserves of 21.5 million barrels ("mmbbl"), an increase of 20% (17.9 mmbbl at year-end 2018);
  • Proved plus Probable ("2P") reserves of 47.7 mmbbl, an increase of 21% (39.4 mmbbl at year end 2018); and,
  • Proved plus Probable and Possible ("3P") reserves of 84.8 mmbbl, an increase of 8% (78.7 mmbbl at year end 2018);
  • In light of global market uncertainty, postponed the drilling of a second water disposal well, delayed completion of CPF-2 facilities, and postponed drilling of the BN 95-7H horizontal well.

Q1 2020 Financial Highlights

  • Generated revenue of $41.8 million ($44.51/bbl) compared to $50.5 million ($57.71/bbl) in Q4 2019;
  • Royalties to the Peruvian government were $1.8 million (4.3% of revenue) during Q1 2020 compared to $1.8 million (3.6% of revenue) for Q4 2019;
  • Funds flow provided by operations was $15.1 million compared to $21.7 million in Q4 2019;
  • Operating costs were $6.0 million ($6.42/bbl) for Q1 2020 consistent with $6.0 million ($6.91/bbl) for Q4 2019;
  • Transportation costs, were $16.1 million ($17.18/bbl) for Q1 2020 increased from $14.3 million ($16.30/bbl) for Q4 2019, as a result of the new oil sales contract finalized in December 2019;
  • The company had cash of $7.4 million at the end of Q1 2020 compared to $21.1 million at year-end 2019 and $17.8 million at the end of Q1 2019. Current cash (as at July 9, 2020) is $24 million;
  • Net operating income was $17.8 million ($18.98/bbl) in Q1 2020 compared to net operating income of $28.4 million ($32.42/bbl) in Q4 2019; and,
  • Resulting from the significant global oil price reduction, the Company had a contingent derivative liability of $40.8 million at March 31, 2020. The actual liability of the oil price difference determination is expected to be lower due to the projected improvement in oil prices when physical sales occur in Q3 and Q4 2020 (for reference, based on the average Brent oil price of approximately $40/bbl for June 2020, the contingent liability is approximately $25 million).

March 31, 2020 Subsequent Events

  • On May 7, 2020, the health department of the Peruvian government issued a directive for COVID-19 prevention in certain high-risk areas. As a result of the directive:
  • Petroperu temporarily shut down pipeline operations to comply;
  • Operations at the Bretaña oil field were temporarily shut in due to storage capacity limitations. The Bretaña oil field was producing approximately 11,500 bopd prior to being shut in;
  • PetroTal is coordinating with Petroperu to reopen the Bretaña oil field in July 2020;
  • The Company deferred its planned capital expenditure for 2020;
  • The oil field shutdown triggered significant reductions in operating and transportation costs; and,
  • The Company proactively reduced its general and administrative costs, inclusive of an average 20% compensation reduction for management and directors.
  • During May 2020, the Company received government-sponsored financial support related to the Covid-19 economic impact totaling $3.2 million. The Peruvian government provided $2.9 million (to be repaid over four years, with repayment commencing after one year for a three year period, and annual interest at 1.12%) and the US government provided $0.3 million under the Paycheck Protection Program (no repayment is required);
  • On June 12, 2020, the Company announced that the contingent liability pertaining to the Brent oil price reduction had been structured into a three-year payment arrangement ("Arrangement") with Petroperu (the "Parties"):
  • The amount of this contingent liability to Petroperu will be definitively determined when the security arrangements for PetroTal's obligations are finalized, expected to be by the end of July 2020. Based on current Brent oil prices, the liability is expected to be approximately $25 million;
  • The Arrangement allows PetroTal to settle the obligations to Petroperu now while still allowing the Company to benefit from higher oil prices forecasted by the Brent forward strip pricing curve when the physical oil sales occur;
  • The Parties have agreed to extend the one-year Oil Sales Contract to three years upon expiry of the current term on December 23, 2020;
  • The Parties established a framework to ensure that future oil sales under the Oil Sales Contract have adequate hedge protection to avoid future downside losses; and,
  • The Parties have agreed to further amendments to the Oil Sales Contract for lower pipeline tariffs and fees during the period of low oil prices;
  • On June 18, 2020, the Company completed an equity issue, raising gross proceeds of approximately $18 million. The Company intends to use the net proceeds for the ongoing development of the Bretaña oilfield, to enhance working capital and towards the reopening of the oilfield;
  • On June 25, 2020, PetroTal entered into a financial swap for 460,000 barrels of oil to cover the upcoming sale by Petroperu at the Bayovar port. The ICE Brent crude oil swap is priced at $40.58 per bbl and settles on July 17, 2020, using the July 1-17,2020 average ICE Brent crude oil price; and,
  • The Company is confident in its ability to ramp up activity at Bretaña, ahead of the planned reopening in July 2020, to ensure the oil field will return to normal operating status.

The following table summarizes key financial and operating highlights associated with the Company's performance for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019. Note that the commodity price derivative is a non-cash item. See the Financial Statements and MD&A for further details.

Quarter ended Quarter ended Quarter ended
Results at a glance March 31, 2020 December 31, 2019 March 31, 2019
Financial
    Crude oil revenues 41,768  50,482  4,529 
    Royalties (1,806) (1,813) (214)
    Net operating income 17,809 28,353 845
    Commodity price derivative loss (income) (1) (1) 40,420 (213) -
    Net income (loss) (31,452) 18,223 (1,610)
    Basic and diluted net income (loss) (US$/share) (0.05) 0.03 0.00
    Capital expenditures 23,872 26,273 9,771
Operating
    Average production (bopd) 9,686 7,767 904
    Average sales (bopd) 10,313 9,509 923 
    Average Brent oil price (US$/barrel) 50.14 63.26 63.83 
    Average realized price (US$/barrel) 44.51 57.71 54.54 
    Netback (US$/barrel) 18.98 32.42 10.18 
    Funds flow from operations 15,059 21,709 (728)
Balance sheet
    Cash 7,373 21,101 17,781
    Working Capital (61,025) (11,762) 15,789
    Total assets 194,274 194,181 100,808 
    Current liabilities 89,914 59,286 14,694
    Equity 90,029 121,057 75,966

 

(1) On June 12, 2020, the Company announced that this contingent liability will be paid over a three-year period.

Based on current oil prices, the overall amount has been reduced to approximately $25 million.

Q1-20 Q4-19 Q1-19
$/bbl $/bbl $/bbl
SALES: Average Production (bopd) 9,686 7,767 904
Bbls Sold 938,478 874,802 83,040
Average sold (bopd) 10,313 9,509 923
Average Brent price ($/bbl) 50.14 63.26 63.83
Quality price differential (%) -11.2% -8.8% -14.6%
Revenues
Oil revenue $44.51 $41,768 $57.71 $50,482 $54.54 $4,529
Less: Royalties $1.92 $1,806 $2.07 $1,814 $2.58 $214
Operating expense $6.42 $6,028 $6.91 $6,047 $30.44 $2,527
Transportation expense $17.18 $16,125 $16.30 $14,268 $11.36 $943
NET OPERATING INCOME $18.98 $17,809 $32.42 $28,353 $10.18 $845
Netback as % of Revenue 42.6% 56.2% 18.7%
General and administrative expense $2.12 $1,993 $6.91 $6,048 $19.62 $1,629
Derivative loss (income) $43.07 $40,420 -$0.24 ($213) $0.00 $0
Accretion and other expense $0.24 $229 $0.26 $229 $1.06 $88
Finance expense $0.53 $499 $0.15 $135 $0.00 $0
Deferred income taxes (recovery) $0.06 $60 $0.05 $45 $0.71 $59
Depletion, depreciation & amortization $6.10 $5,725 $4.30 $3,760 $8.97 $745
Impairment and foreign exchange $0.36 $335 $0.14 $126 -$0.79 ($66)
NET INCOME (LOSS) ($31,452) $18,223 ($1,610)
FUNDS FLOW FROM OPERATIONS $15,059 $21,709 $(728)

 

Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:

"Despite the challenging macro backdrop, PetroTal achieved a great deal during the first quarter of 2020. The Company successfully drilled the 6H well on time and under the original budget. To date, the well has performed in line with expectations, producing approximately 4,500 bopd for the first 10 days in April 2020.

Post-period end, we chose to take decisive action to preserve the Company's liquidity position and I am pleased with the results we have achieved to date. We remain on track to restart production at Bretaña later this month and I look forward to updating all our stakeholders as we look to resume normal operating conditions in due course."

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 its 100% working interest in Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field.

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

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

Manolo Pablo Zuniga- Pflucker
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

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

Auctus Advisors LLP (Joint Broker)
Jonathan Wright / Rupert Holdsworth Hunt / Harry Baker
T: +44 (0) 7711 627449

READER ADVISORIES

FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; the Company's ability to operate in accordance with developing public health efforts to contain COVID-19; the timing of filing the Interim Filings. 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. 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. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Company's annual information form and management's discussion and analysis for the year ended December 31, 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/59517


PetroTal Announces Filing Date for First Quarter 2020 Results

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - July 6, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") advises that its unaudited consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2020 ("Interim Filings") will be released on July 9, 2020.

This is in accordance with the exemption provided in Alberta Securities Commission Blanket Order 51-517 Temporary Exemption from Certain Corporate Finance Requirements (and similar exemptions provided by the other Canadian securities regulators).

Until the Company has filed the Interim Filings, members of the Company's Board, management and other insiders are subject to an insider trading black-out policy that reflects the principles in section 9 of National Policy 11-207 - Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.

There have been no material business developments since the filing of the Company's annual financial statements and accompanying management's discussion and analysis for the year ended December 31, 2019 on June 15, 2020, except as disclosed in the press release dated June 18, 2020. As stated in that press release, the Company continues to plan for the re-opening of the Bretana oil field this month.

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 its 100% working interest in Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field.

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

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

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

Auctus Advisors LLP (Joint Broker)
Jonathan Wright / Rupert Holdsworth Hunt / Harry Baker
T: +44 (0) 7711 627449

READER ADVISORIES

FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; the Company's ability to operate in accordance with developing public health efforts to contain COVID-19; the timing of filing the Interim Filings. 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. 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. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Company's annual information form and management's discussion and analysis for the year ended December 31, 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.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/59194