Director / PDMR Shareholding

Calgary and Houston June 25, 2021—PetroTal Corp. (“PetroTal” or the “Company”) (TSX‐V: TAL and AIM: PTAL) announces that Gavin Wilson, Non-Executive Director, acquired 30,000 Common Shares in the Company on June 25, 2021 at 0.1546 pence per share.

As a result, Gavin Wilson’s total beneficial interest in the Company is 95,000 Common Shares, representing less than .01 percent of the Company's issued share capital.

1 Details of the person discharging managerial responsibilities/person closely associated
a) Name Gavin Wilson
2 Reason for the notification
a) Position/status Non-Executive Director
b) Initial notification/Amendment Initial notification
3 Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a) Name PetroTal Corp
b) LEI ER 21380047ER33PRH56
4 Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a) Description of the financial instrument, type of instrument

Identification code

PetroTal Corp Common Shares

ISIN:  CA71677J1012

b) Nature of the transaction The acquisition of common shares of no par value each in the Company
c) Price(s) and volume(s)
Price Volume
.1546 pence per share 30,000
d) Aggregated information

- Aggregated volume
- Price
 

30,000 Common Shares

.1546 pence per share

e) Date of the transaction June 25, 2021
f) Place of the transaction LSE Exchange

 

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 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.  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 Bretana 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; the Company’s ability to operate in accordance with developi

PRng 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.


Director / PDMR Shareholding

Calgary and Houston June 18, 2021—PetroTal Corp. (“PetroTal” or the “Company”) (TSX‐V: TAL and AIM: PTAL) announces that Gavin Wilson, Non-Executive Director, acquired 65,000 Common Shares in the Company on June 16, 2021 at 0.1495 pence per share.

As a result, Gavin Wilson's total beneficial interest in the Company is 65,000 Common Shares, representing less than .01 percent of the Company's issued share capital.

1 Details of the person discharging managerial responsibilities/person closely associated
a) Name Gavin Wilson
2 Reason for the notification
a) Position/status Non-Executive Director
b) Initial notification/Amendment Initial notification
3 Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a) Name PetroTal Corp
b) LEI ER 21380047ER33PRH56
4 Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a) Description of the financial instrument, type of instrument

 

Identification code

PetroTal Corp Common Shares

 

ISIN:  CA71677J1012

b) Nature of the transaction The acquisition of common shares of no par value each in the Company
c) Price(s) and volume(s)
Price Volume
.1495 pence per share 65,000
d) Aggregated information

- Aggregated volume
- Price
 

65,000 Common Shares

.1495 pence per share

e) Date of the transaction June 16, 2021
f) Place of the transaction LSE Exchange

 

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 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.  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 Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana 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 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

PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com

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
T: +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; drilling, completions, workovers and other activities and the anticipated costs and results of such activities; the ability of the Company to achieve drilling success consistent with management's expectations; anticipated future production and revenue; drilling plans including the timing of drilling; oil production levels, including average production and exit production in 2021; the 2021 capital program and budget, including drilling plans; COVID-19 surveillance and control process; hedging program and the terms thereof; and future development and growth prospects.  All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. 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, including pursuant to hedging arrangements, 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 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 volatility, price differentials and the actual prices received for products, 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  MD&A and the most recent annual information form 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: References in this press release to 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.  The Company cautions that the such results should be considered to be preliminary.

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in NI 51-101.  All references to Brent indicate Intercontinental Exchange ("ICE") Brent. 

NON-GAAP MEASURES: This press release contains financial terms that are not considered measures under generally accepted accounting principles ("GAAP") such as operating netback, funds flow provided by operations and free cash flow that do not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. Management uses these non-GAAP measures for its own performance measurement and to provide shareholders and investors with additional measurements of the Company's efficiency and its ability to fund a portion of its future capital expenditures. The Company considers operating netbacks to be a key measure as they demonstrate Company’s profitability relative to current commodity prices. Netback is calculated by dividing net operating income by barrels sold in the corresponding period. Funds flow provided by operations, is a non-GAAP measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. A reconciliation from cash provided by operating activities to funds flow provided by operations is included in the MD&A. Free cash flow is operating cash flow before hedging minus maintenance capital expenditures.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production and production capacity, 2021 capital program and budget, cash flow profile, free cash flow, liquidity 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 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.


PetroTal Issues Equity Vested Through PSU Plan

Calgary, AB and Houston, TX – June 15, 2021 - PetroTal Corp. ("PetroTal" or the "Company") announces that the Company has issued an aggregate of 1,869,486 Common Shares to a former officer of the Company pursuant to obligations to issue vested performance share units ("PSUs") to acquire Common Shares under the Company's performance and restricted share unit plan, as approved by the TSX Venture Exchange on December 12, 2019.

Further details regarding the PSU plan are set out in the management information circular of the Company dated July 9, 2020 which is available on SEDAR at www.sedar.com.

Admission to Trading on AIM/TSXV and Total Voting Rights

Application will be made to the London Stock Exchange for the admission of 1,869,486 Common Shares to trading on AIM ("Admission") and to the TSXV for listing of 1,869,486 Common Shares for trading on the facilities of the TSXV.  It is expected that Admission will become effective at 8.00 a.m. on 21 June 2021.

Following Admission, the Company will have 818,536,865 Common Shares in issue and there are no shares held in treasury.  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.

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 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.  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 Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana 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 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

PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com

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
T: +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; drilling, completions, workovers and other activities and the anticipated costs and results of such activities; the ability of the Company to achieve drilling success consistent with management's expectations; anticipated future production and revenue; drilling plans including the timing of drilling; oil production levels, including average production and exit production in 2021; the 2021 capital program and budget, including drilling plans; COVID-19 surveillance and control process; hedging program and the terms thereof; and future development and growth prospects.  All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. 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, including pursuant to hedging arrangements, 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 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 volatility, price differentials and the actual prices received for products, 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  MD&A and the most recent annual information form 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: References in this press release to 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.  The Company cautions that the such results should be considered to be preliminary.

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in NI 51-101.  All references to Brent indicate Intercontinental Exchange ("ICE") Brent. 

NON-GAAP MEASURES: This press release contains financial terms that are not considered measures under generally accepted accounting principles ("GAAP") such as operating netback, funds flow provided by operations and free cash flow that do not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. Management uses these non-GAAP measures for its own performance measurement and to provide shareholders and investors with additional measurements of the Company's efficiency and its ability to fund a portion of its future capital expenditures. The Company considers operating netbacks to be a key measure as they demonstrate Company’s profitability relative to current commodity prices. Netback is calculated by dividing net operating income by barrels sold in the corresponding period. Funds flow provided by operations, is a non-GAAP measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. A reconciliation from cash provided by operating activities to funds flow provided by operations is included in the MD&A. Free cash flow is operating cash flow before hedging minus maintenance capital expenditures.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production and production capacity, 2021 capital program and budget, cash flow profile, free cash flow, liquidity 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 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.


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 Enhances Financial Leadership

Calgary and Houston – November 4, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to announce the addition of Mr. Douglas Urch, a seasoned financial executive, as Executive Vice President and Chief Financial Officer of the Company, effective immediately. PetroTal continues to benefit from successful drilling and operations and, by enhancing its financial leadership, the Company is preparing for further growth, especially now that production continues to be above 7,500 barrels of oil per day (“BOPD”) with a target of 10,000 BOPD by year-end.

Background of Douglas Urch:

Mr. Urch brings over 35 years of international oil and gas experience to the executive team of PetroTal. From 2008 to 2018, he was EVP and CFO of Bankers Petroleum Ltd. (TSX and AIM listed), operating in Albania. From 2000 to 2008 he was VP and CFO of Rally Energy Corp. (TSX listed), operating in Egypt. His international experience also includes Colombia, Pakistan, Turkey, Hungary and the USA. Being an initial investor in PetroTal, Mr. Urch has served as a director of the Company since inception, and as Chairman of the Board for the past year and a half. He is a Chartered Professional Accountant (CPA), a designated member of the Institute of Corporate Directors (ICD), and graduate from the University of Calgary (B.Comm. -1980).

Mr. Urch commented: “I’m pleased to be engaged in this role and appreciate the confidence and support shown by the Board. Being a founding investor, I’m very familiar with PetroTal and look forward to my contribution to the continued success that Manolo and the PetroTal team have achieved to date.”

Changes to the Board:

Concurrent with his appointment as EVP and CFO of the Company, Mr. Urch will resign as a director and Chairman of the Board. Mr. Mark McComiskey, an existing director since inception, will assume the Chairman’s role. Mr. McComiskey has been an investor in and served on the board of numerous energy companies, with operations in North and South America, Europe, Asia and Africa. He has led over $6 billion of investment in the energy sector, raising over $10 billion of capital. Currently, Mr. McComiskey is a partner at AVAIO Capital, a firm that focuses on build-to-core infrastructure investment.

The Board would like to thank Greg Smith, PetroTal’s former Executive Vice President and Chief Financial Officer, for his contribution to the Company and wish him every success in his future endeavors.

Manolo Zuniga, President and Chief Executive Officer, commented:

“I’d like to welcome Mr. Urch as the new CFO of PetroTal; his vast international background and successful financial track record will be extremely valuable to PetroTal during its continued growth from being a start-up operation. Additionally, with Doug having been a director of PetroTal since inception, he is fully aware of the Company’s operations and corporate strategy. I have enjoyed working closely with him during the past year and a half while he was Chairman of the Board and look forward to continuing working with him now as CFO.

I’d like to sincerely thank Greg for his valuable contribution over the years and acknowledge his dedication to the Company. I join with the Board in wishing Mr. Smith future success.”


ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐listed (TSX‐V: 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 development asset is the Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, six months after acquisition. 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. More information on the Company can be found at www.PetroTal‐Corp.com.

For further information, please contact:

Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@Petrotal-Corp.com
T: (403) 616-7411

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

Mark Antelme / Jimmy Lea
Celicourt Communications (Financial PR)
petrotal@celicourt.uk
T: 44 (0) 207 520 9261

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

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

Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 (0) 20 7448 0200

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: PetroTal’s business strategy, objectives, strength and focus; drilling, completion, and workover activities of oil producing and water disposal wells and the results and timing of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production, revenue and cash flow; exit production in 2019; 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 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. 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 months ended March 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.

OIL AND GAS INFORMATION: 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.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, payout, cash flow, budget 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 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 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.


PetroTal Completes First Horizontal Well, Spuds Development Well and Achieves New Record Production at Bretaña

Calgary and Houston – October 21, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX‐V: TAL and AIM: PTAL) is pleased to provide an update in respect of its operations and production at the Bretaña oil field in Block 95 in Peru (100% working interest). All monetary amounts in this release are in United States dollars.

HIGHLIGHTS

  • Completed the BN 95‐4H (“4H”) horizontal well on time and under budget by approximately $3.0 million using new technology to maximize oil production
  • 4H initial four‐day production rate of 6,200 barrels of oil per day (“BOPD”), exceeding management’s expectations
  • Bretaña reached new record production of over 8,000 BOPD, with three of five wells online
  • Current Bretaña field production of approximately 7,800 BOPD
  • Interim upgrades to production facilities increased production capacity to 7,500 BOPD
  • Spud the BN 95‐5H (“5H”) well, which will be the Company’s second horizontal development oil well

PetroTal has successfully completed the 4H well, the Company’s first horizontal well in the Bretaña oil field. The well had an approximately 500‐meter lateral completion utilizing autonomous inflow control device (“AICD”) valves to maximize oil production. Initial production from the well during the first four days of production was 6,200 BOPD. The 4H well was drilled updip towards the crest of the structure and provided data to confirm management’s analysis of the reservoir. The well was drilled under budget by approximately $3.0 million (representing 20 percent savings), which will expedite payout of the well. The Company will announce additional well data, including sustained rates, with its quarterly financial filings and operations update in November 2019.

During the third quarter, the Company upgraded the production facilities, expanding PetroTal’s production capacity to over 7,500 BOPD. The Company plans to commission phase one of its central production facilities for Bretaña (“CPF‐1”) in December 2019, which will increase full field production capacity to over 10,000 BOPD. Incremental implementation of phase two of the Company’s production facilities (“CPF‐2”) is planned for July 2020. When CPF‐2 is fully integrated by year‐end 2020, PetroTal will have the capacity to produce up to 20,000 BOPD. Facility expansion is being implemented on a modular basis to time facilities with well completions to most efficiently deploy capital.

As a result of the Company’s successful drilling campaign in Block 95 to date, the Board of Directors has approved an additional $19.0 million of capital expenditures for 2019. Approximately $14.0 million will be deployed to drill and complete the 5H well, which will target updip oil to the northern portion of the structure; and $5.0 million will be directed to bring additional production facilities to the field by mid‐2020, as an interim step to installing CPF‐2 by year‐end 2020. The Company expects the interim capital spent will yield an additional 5,000 BOPD of capacity in mid‐2020. As mentioned above, the CPF‐2 should bring total field oil production capacity to 20,000 BOPD by year end 2020.

Once completed, the 5H well will be the Company’s second horizontal well. Production from the well is expected to help the Company achieve a targeted exit rate of 10,000 BOPD at yearend 2019. The 5H well will also be completed with AICD valves in the lateral section. The well is expected to come online simultaneously with the facilities commissioning at year‐end. The Company plans to drill a second water disposal well in January 2020 as part of a new capital budget once approved by the Board of Directors.

Management expects to fund the 2019 additional capital spending with existing working capital and cash flow from operations. As of September 30, 2019, the Company has cash and cash equivalents of approximately $40.0 million. The Company produced approximately 4,800 BOPD in the fiscal third‐quarter. Management expects average above 6,500 fourth quarter production above 6,500 BOPD, a projected increase of over 35 percent over the third quarter average.

Manolo Zuniga, President and Chief Executive Officer, commented:

“Our drilling campaign continues to yield excellent results. The strong initial production from the 4H well validates our development plan. Our first horizontal well completion will provide significant data and the AICD valve will bring more oil into the wellbore. We are please to announce a number of recent milestones: 500 days of production, more than 1 million barrels of oil produced and new record production of over 8,000 BOPD (from only three wells as the production facilities reached the upper limits of capacity). Our team is doing an outstanding job in its drilling and capital discipline. As a result, we asked the Board for additional capital to continue our development drilling program and make facility upgrades to sustain oil production of over 10,000 BOPD. This additional capital will allow the Company to reach free cash flow generation faster and see our future drilling campaign funded from cash flow.

Capital discipline is key, and having stressed that from day one, we have seen the teams in Houston, Lima, and the field execute at a high level and in a safe and environmentally friendly manner. To save twenty percent on a single well is a very strong achievement. Our Board’s approval of the additional capital to continue the development drilling campaign through year‐end is testament to solid execution and ongoing capital efficiency.

Facilities to enable us to attain the 10,000 BOPD mark are scheduled to be commissioned in December 2019. The 5H well will help sustain oil production through the first quarter of 2020 which is key as our next well will be an additional water disposal well in early 2020 to provide assurance in the field. As part of the capital raise completed in May 2019, we promised to drill the 5H well and to drill a second water disposal well to provide assurance to production at Bretaña, and that is what we are delivering.”


ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐listed (TSX‐V: 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 development asset is the Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, six months after acquisition. 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. More information on the Company can be found at www.PetroTal‐Corp.com.

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

Mark Antelme / Jimmy Lea
Celicourt Communications (Financial PR)
petrotal@celicourt.uk
T: 44 (0) 207 520 9261

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

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

Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 (0) 20 7448 0200

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: PetroTal’s business strategy, objectives, strength and focus; drilling, completion, and workover activities of oil producing and water disposal wells and the results and timing of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production, revenue and cash flow; exit production in 2019; 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 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. 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 months ended March 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.

OIL AND GAS INFORMATION: 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.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, payout, cash flow, budget 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 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 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.


PetroTal Announces Second Quarter Financial Results and Operations Update

PetroTal Announces Second Quarter Financial Results and Operations Update

Calgary, Alberta and Houston, Texas – August 29, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to provide a summary of its financial and operating results as of June 30, 2019.

Selected financial 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 the three and six months ended June 30, 2019, which are available on SEDAR at www.sedar.com and the Company’s website at www.petrotal-corp.com. All figures referred to in this press release are denominated in U.S. dollars.

2019 SECOND QUARTER HIGHLIGHTS and OPERATIONAL UPDATE

• Produced approximately 280,000 barrels of oil (“BO”) during the second quarter

• Production averaged 3,100 barrels of oil per day (“BOPD”) versus 944 BOPD prior quarter

• Successfully drilled and completed two oil development wells

• Received approval of the Environmental Impact Assesssment allowing for full field development

• Completed an upsized and oversubscribed placement of common shares, raising ~$24 million net

THIRD QUARTER SUBSEQUENT EVENTS

• Re-completed water disposal well into producer in August, initial production rate of 2,700 BOPD

• Increased oil production to approximately 5,500 BOPD in August 2019

• July and August (to date) 2019 cumulative production approximated 285,000 BO

OPERATIONS UPDATE

The Company continued the development of the Bretaña oil field and produced an average of 3,100 BOPD during the quarter, compared to 944 BOPD in the 2019 first quarter.

The Company drilled and completed the BN 95-2XD and BN 95-3D wells in the northern section of the field. These two development oil wells allowed the Company to increase production to over 5,000 BOPD, as expected by management.

In August, the Company re-completed the existing water disposal well, drilled by the previous operator, and converted it to an oil producer (“BN 95-1”). The initial production rate of the BN 95-1 was approximately 2,700 BOPD.

Currently the Company is producing just over 5,500 BOPD, managing each of the wells at different pump rates due to capacity of facilities which are constrained to between 5,000 and 6,000 BOPD. Due to these capacity limits, since the BN 95-3D was completed, the BN 95-1XD well has been shut in.

The Company’s field production was reduced in July to around 4,000 BOPD due to lack of storage during the recent pipeline downtime. Subsequently, the Company was able to complete the first sale through the northern oil pipeline, a batch of 200,000 BO, allowing the Company to ramp production back to current levels.

With recent drilling the success of the and the operational knowledge of the field engineers, the Company is confident it can reach the projected goal of 5,000 BOPD for this fiscal third quarter.

Also, the Company drilled a new water disposal well, the BN-2W, on the flanks of the field, which was placed into operation following the injectivity test. This well was required prior to re-completing the existing water disposal well. Injectivity tests showed capacity of the water disposal well at 40,000 barrels of water per day.

Additional facilities to grow oil production volumes to 10,000 BOPD by year-end are still on track, and the commissioning of those facilities is expected to begin in December 2019.

Manolo Zuniga, President and Chief Executive Officer, stated:

“The Company continues to meet targets and execute at a high level. The success of our development program has us at the upper limits of our facilities in the field, and our team is committed to optimizing production operations to assure we meet our targets. We continue to experience excellent results from the development program and that should give confidence to stakeholders that the team we have has the knowledge and experience to operate fields like Bretana.

Our successful capital raise has given us the confidence that we can accelerate the production ramp to 10,000 BOPD by year end, months ahead of our original plan. We have already started the procurement process to add facilities in mid-2020 to allow for another step increase in production capacity to 12,000-14,000 BOPD. We have consistently demonstrated capital discipline, and we continue to find ways to optimize field operations to unlock the value to our stakeholders.”

FINANCIAL HIGHLIGHTS

The following table summarizes key financial highlights associated with the Company’s financial performance. See the Financial Statements and the MD&A for further details.

Six months ended June 30,

2019

2018

$ thousands except where defined

Oil revenues (before royalty expense)

12,628

-

Expenses

(13,720)

(2,944)

Net loss

(1,092)

(2,944)

Net loss per weighted average Common share – basic and diluted ($)

0.00

(0.00)

Exploration and evaluation asset expenditures

395

12,939

Property plant and equipment expenditures

34,244

178

Net working capital surplus (deficit)

17,776

42,554

Total assets

145,833

97,363

Total liabilities

45,675

16,864

Shareholders' equity

100,158

80,499

Common Shares outstanding (000's)

672,196

537,741

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐listed (TSX‐V: 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 development asset is the Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018, six months after acquisition. 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. More information on the Company can be found at www.PetroTal‐Corp.com.

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

Mark Antelme / Jimmy Lea
Celicourt Communications (Financial PR)
petrotal@celicourt.uk
T: 44 (0) 207 520 9261

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

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

Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 (0) 20 7448 0200

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: PetroTal’s business strategy, objectives, strength and focus; drilling, completion, and workover activities of oil producing and water disposal wells and the results and timing of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production, revenue and cash flow; exit production in 2019; 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 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. 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 months ended March 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.

OIL AND GAS INFORMATION: 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.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, payout, cash flow, budget 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 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 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.


PetroTal Successfully Converts Water Disposal Well to Oil Producer with Uplift of 2,700 Barrels of Oil per Day

PETROTAL SUCCESSFULLY CONVERTS WATER DISPOSAL WELL TO OIL PRODUCER WITH UPLIFT OF 2,700 BARRELS OF OIL PER DAY

Calgary and Houston August 21, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to provide an update in respect of its operations and production at the Bretaña field in Block 95 (PetroTal: 100% Working Interest) in Peru.

HIGHLIGHTS

  • Company has successfully completed the BN 95-2WD well (the “2WD”)
  • Following completion of the 2WD, the Company successfully converted the existing water disposal well (“BN 95-1W”) into an oil producer, renamed the BN 95-1
  • BN 95-1 initial production rate of 2,700 barrels of oil per day (“BOPD”) exceeds management expectations
  • Current production approximates 5,500 BOPD
  • Total field production in August has averaged approximately 5,000 BOPD as expected
  • Company spud the BN 95-4 well, a development oil well planned with a horizontal completion

PetroTal has completed a new water disposal well, BN 95-2WD, and proved injection capacity, thus allowing the Company to recomplete BN 95-1W and make it an oil producer, BN 95-1.  Management expected the BN 95-1 to deliver initial uplift of 1,500-2,000 BOPD.  The initial production rate over the first seven days was 2,700 BOPD.  Management plans to provide more information on the BN 95-1 well at the end of August.  The Company has spud the BN 95-4 well, intended to be a horizontal completion into the Vivian formation.  The BN 95-4 well is expected to take 60 days to drill and complete, with a 500-meter lateral completion scheduled.

Total Bretaña field production is currently at 5,500 BOPD, with the BN 1XD still shut-in, allowing us to reach an August average production of 5,000 BOPD as expected.  The central processing facilities to increase Bretaña’s total oil field production, expected to be commissioned in December, should bring total field production up to 10,000 BOPD by year-end with the successful drilling and completion of two additional oil development wells, the BN 95-4 and BN 95-5.

Manolo Zuniga, President and Chief Executive Officer, commented: 

“Continued execution at Bretaña and stable production above 5,000 BOPD should give confidence to all stakeholders in our ability to unlock value.  The water disposal injectivity test rate of approximately 40,000 barrels of water per day shows just how permeable the Vivian formation is.  It also allows us to optimize our capital budget and push our next water disposal well to next year, allowing us to focus on oil producing wells in next year’s capital budget.  The operations team continue to do an outstanding job.  

The re-completion of BN 95-1W into an oil producer, at a capital cost of approximately $2.3 million, provides a payout in less than 30 days and is an excellent example of capital efficiency.  With current production of 5,500 BOPD, we expect to meet our quarterly target of 5,000 BOPD for the third quarter.  We have spud the BN 95-4 well and we are hopeful that this scheduled horizontal completion, with new technology to keep water cuts at lower levels during the initial months, will add to the existing production base, as well as provide valuable information to evaluate reserves at year-end 2019.”

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

Mark Antelme / Jimmy Lea
Celicourt Communications (Financial PR)
petrotal@celicourt.uk
T: 44 (0) 207 520 9261

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

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

Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 (0) 20 7448 0200

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: PetroTal’s business strategy, objectives, strength and focus; drilling, completion, and workover activities of oil producing and water disposal wells and the results and timing of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production, revenue and cash flow; exit production in 2019; 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 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. 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 months ended March 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.

OIL AND GAS INFORMATION: 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.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, payout, cash flow, budget 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 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 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.


PetroTal Corp. Provides Quarterly Operations Update

PETROTAL BRINGS THIRD BRETAÑA OILWELL, BN 95-3D, ONLINE; TOTAL FIELD PRODUCTION RISES TO OVER 5,000 BOPD

Calgary and Houston July 11, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to provide an update in respect of its operations and production at the Bretaña field in Block 95 (PetroTal: 100% Working Interest) in Peru.

HIGHLIGHTS

  • BN 95-3D well (the “3D”), which came online mid-June 2019 with initial production of 3,500 barrels of oil per day (“BOPD”) and averaged 2,875 BOPD over the first 24 days of production
  • Full field Bretaña production averaged 3,000 BOPD in 2Q2019, ahead of analyst expectations, and averaged 5,350 BOPD since the 3D came online.
  • Company has spud the BN 95-2WD well (the “2WD”) which will be the primary water disposal well
  • Following completion of the 2WD, the Company plans to convert the existing water disposal well into an oil producer
  • Social unrest in the Northern jungle of Peru has had minimal effect on PetroTal’s operations

Further to the Company’s announcement on 19 June 2019, the Company’s third oil well, which came online at an initial rate of approximately 3,500 BOPD, is now being produced at 3,100 BOPD. The well has an electric submersible pump (“ESP”) that will optimize future well productivity. Total production from the field since the 3D came online has averaged 5,350 BOPD and current daily production is approximately 5,000 BOPD.  The Company has begun storing crude oil at Saramuro, Peru to be able to ship the first 50,000 barrel batch through the ONP pipeline, with subsequent batches expected to be of 100,000 barrels each.

Once the 2WD water disposal well is completed, PetroTal will begin a workover of the existing water disposal well, making it the Company’s fourth oil producer.  The next phase of production facilities is being built and is expected to be in the field and begin commissioning by year-end 2019.  This, alongside the drilling and completion of the BN 95-4H well (the next new well in the campaign), will provide the Company with the capacity to produce up to 10,000 BOPD.

Since July 5, the northern jungle region of Peru has been enduring social unrest as the local communities are demanding solution to a series of demands, including a larger share of the Government take towards the local populations where the crude oil is produced.  This is something the Company supports, combined with the training of local officials responsible for deploying the money.  Except for the Bretaña field, all other northern jungle producing fields are either shut or not being able to fiscalize its production.  Pump station No. 5 of the Oil Northern Peru (“ONP”) pipeline was reopened yesterday, which should help normalize operations in the next few days.  Nevertheless, the Company has had to curtail production, which has averaged 4,875 BOPD since the unrest began due to foreseen limits to storage capacity.  The Company will keep investors informed regarding any downtime and production curtailments over the next few weeks.

Manolo Zuniga, President and Chief Executive Officer, commented: 

“We are very pleased to have achieved quarter on quarter production growth of 300 percent, a direct result of the team’s success and experience.  We averaged 3,000 BOPD in the second quarter and exceeded the production milestone of 500,000 total barrels of crude oil in June 2019.  We are making good progress on the water disposal well and are excited to start the workover of the existing water disposal well making it the fourth oil producer in the Company’s brief history. 

Our latest equity raise has allowed PetroTal to have a great deal of financial flexibility, with no debt.  We will continue to optimize the capital structure, providing stakeholders exposure to a truly independent oil company with double digit growth through development drilling alone, complemented by substantial exploration potential at Osheki in Block 107.  We continue to host companies in the data room to review the Osheki opportunity, with the potential of engaging a joint venture partner to drill the prospect in 2020.

It is a testament to PetroTal’s philosophy that the Bretaña field is the only one still producing normally during the protests.  This is a reflection that the local communities believe we are working on behalf of all stakeholders, promoting the fair distribution and proper use of the government take from the Bretaña Project.  Though we cannot guarantee Bretaña will not eventually be shut as a consequence of their demands, we would expect this would be for a relatively short period of time.

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

Mark Antelme / Jimmy Lea
Celicourt Communications (Financial PR)
petrotal@celicourt.uk
T: 44 (0) 207 520 9261

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

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

Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 (0) 20 7448 0200

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: PetroTal’s business strategy, objectives, strength and focus; drilling, completion, and workover activities of oil producing and water disposal wells and the results and timing of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production, revenue and cash flow; exit production in 2019; 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 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. 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 months ended March 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.

OIL AND GAS INFORMATION: 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.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, payout, cash flow, budget 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 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 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.


PetroTal Corp Provides Operations Update

PETROTAL BRINGS THIRD BRETAÑA OILWELL, BN 95-3D, ONLINE; TOTAL FIELD PRODUCTION RISES TO OVER 5,000 BOPD

Calgary and Houston June 18, 2019—PetroTal Corp (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to announce the third oil well in the Bretaña field is online, bringing total field current production to over 5,000 barrels of oil per day (“BOPD”).

HIGHLIGHTS

  • BN 95-3D well had initial production of 3,500 BOPD
  • Full field Bretaña production is now over 5,000 BOPD, in line with guidance
  • Deviated completion to optimize cash flow, with option to sidetrack horizontally in 2020
  • BN 95-3D is Company’s first well completed with an electric submersible pump
  • BN 95-3D expected to come in under budget
  • Company will immediately begin drilling BN 95-2WD water disposal well
  • Following the 2WD, recompletion of the existing water disposal well as an oil producer will commence

The Company’s third oil well, which reached total depth in early June, was completed as an oil producer in the Vivian formation in the northern portion of the Bretaña structure.  The well was brought online at an initial rate of approximately 3,500 BOPD. This is an early production rate and more detailed production data will be announced in due course.  The well has an electric submersible pump (“ESP”) that will optimize future well productivity. The well, which originally scheduled to be completed horizontally, was brought online through a deviated completion.  While drilling the section above the target Vivian formation, the service provider’s directional drilling tools, needed to drill the horizontal section, had a mechanical failure that resulted in the need to sidetrack the well and complete it directionally. Even with the sidetrack, the well is expected to come in under the estimated US$13 million pre-drill budget.

The Company will now move forward to drill the BN 95-2WD, a water disposal well.  The Company’s water wells are expected to be able to handle reinjection rates of 30,000 barrels of water per day.  Following the 2WD water injection well, management intends to undertake a workover of the existing 1WD water disposal well and complete it as an oil producer;  the current 1WD water disposal well, drilled by the previous operator, was completed with limitations on injection capacity, and was drilled at the crest of the structure making it a candidate to become an oil producer.  Estimated cost of the workover of this well is $2 million, and management believes this is the most effective use of capital.  If successful, payout of the well could be faster than any other oil well in the field. The Company’s future water wells will be drilled on the flanks of the field to optimize production.

Production from the Bretaña field, currently restricted to between 5,000 and 6,000 BOPD with existing processing facilities, is now over 5,000 BOPD, consistent with management’s projections. The Company’s second oil producer the 2XD, is producing at 2,400 BOPD, slightly ahead of rates announced at the end of May 2019.  The two wells drilled by the Company, the 2XD and 3D, are supplying the field’s oil capacity, and the 1XD discovery well, drilled by a previous operator, has been shut in to manage constraints in the field. The drilling and recompletion work addressed above are designed to ready the field for production to increase up to 10,000 BOPD later in the year, once phase two of oil processing equipment is installed and commissioned, and the BN 95-4H well (the next new well in the campaign) is drilled and completed.

Manolo Zuniga, President and Chief Executive Officer, commented: 

“The mid-year objective of reaching total field production of over 5,000 BOPD is yet another key milestone that has been reached by the team.  The BN 95-3D well came online at impressive rates, and although in its early days, is producing 3,500 BOPD.  The team made a decision to complete the well vertically and deliver key cash flow, knowing that we can sidetrack the well into a horizontal completion at a later date, likely in 2020. We will now drill a water disposal well that will allow us to follow that work with a recompletion of the existing water well, turning it into an oil producer.  The reservoir team believes the productive sands in the water well are as good, if not better, than the wells drilled to date.  Our water disposal wells will be drilled on the flanks of the field rather than at the crest, where logs of the Vivian formation in the existing water disposal well look impressive.”

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

Mark Antelme / Jimmy Lea
Celicourt Communications (Financial PR)
petrotal@celicourt.uk
T: 44 (0) 207 520 9261

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

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

Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 (0) 20 7448 0200

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: PetroTal’s business strategy, objectives, strength and focus; drilling, completion, and workover activities of oil producing and water disposal wells and the results and timing of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production, revenue and cash flow; exit production in 2019; 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 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. 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 months ended March 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.

OIL AND GAS INFORMATION: 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.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, payout, cash flow, budget 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 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 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.