wpengine, Author at PetroTal Corp.

PetroTal Announces PSU Share Issuance and Total Voting Rights

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - September 29, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") announces issuance of Common Shares to employees pursuant to annually vested performance share unit plan ("PSU").

PSU Issue

PetroTal has issued an aggregate of 752,833 Common Shares to employees pursuant to the annual obligation to issue vested performance share units under the Company's performance and restricted share unit plan, as approved by the TSX Venture Exchange on December 12, 2019.

Shares issued to directors or officers of the Company are as follows:

Manolo Zuniga - President and Chief Executive Officer - 348,040 shares

Douglas Urch - Executive Vice President and Chief Financial Officer - 246,388 shares

Further details regarding the Company's PSU plan are set out in the management information circular of the Company dated May 3, 2023, which is available on SEDAR at www.sedar.com.

Application will be made for a total admission of 752,833 Common Shares to trading on AIM ("Admission"), which will rank pari passu with existing Common Shares, expected to occur on or around October 2, 2023.

Following Admission, PetroTal will have 917,453,257 common shares issued and there are no shares held in treasury. This figure may be used by shareholders as the denominator for the calculations to 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.

PDMR Notification Form:

Details of the person discharging managerial responsibilities / person closely associated

Name

Manuel Pablo Zuniga-Pflucker
Douglas Urch

Reason for the Notification

Position/status

President & Chief Executive Officer
Executive Vice President & Chief Financial Officer

Initial notification/amendment

Initial notification

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

Name

PetroTal Corp.

LEI

21380047ER33PRH4XH56

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

Description of the Financial instrument, type of instrument

PetroTal Corp. Common Shares

Identification code

CA71677J1012

Nature of the Transaction

Issue of Common Shares under the Company's performance and restricted share unit plan

Price(s) and volume(s)

Price(s)	Volume(s)
n/a n/a	348,040 246,388

Aggregated information
Aggregated volume Price

n/a

Date of the transaction

29 September 2023

Place of the transaction

n/a

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSX: TAL) (AIM: PTAL) and (OTCQX: PTALF) 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. In early 2022, PetroTal became the largest crude oil producer in Peru. 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. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.

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) 20 7770 6424

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

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

Peel Hunt LLP (Joint Broker)
Richard Crichton / David McKeown / Georgia Langoulant
T: +44 (0) 20 7418 8900

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, oil production levels and guidance, including the ramp up and resumption of shut-in production. 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. Without limitation, this press release contains forward-looking statements pertaining to: the appointment of an additional director during the forthcoming year; expectations surrounding disrupted barge logistics and the consequences in respect thereof, including in relation to the Company's ability to maintain production at about 22,000 bopd; effects of the illegal blockade removal and release of oil convoys in respect of overall safety in the Loreto area; PetroTal's recommendations and expectations surrounding furniture negotiations with AIDECOBAP and future social fund allocation decisions. In addition, statements relating to expected production, reserves, recovery, replacement, 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. 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, the ability of government groups to effectively achieve objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, including pursuant to Acta, 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 impact of inflation on costs, 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, future river water levels, 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; changes in the financial landscape both domestically and abroad, including volatility in the stock market and financial system; and wars (including Russia's war in Ukraine). Please refer to the risk factors identified in the Company's most recent AIF and MD&A 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 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.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/182256

by wpengine

PetroTal Announces Corporate Updates and Dividend Confirmation

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - September 13, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the following corporate updates.

Dividend Payment Confirmation

As announced on August 8, 2023, the Company is pleased to confirm that a total dividend payment of approximately $23 million, representing US$0.025/share, will be paid on September 15, 2023 to shareholders on record at August 31, 2023. This equates to a 4.3% quarterly yield (17.2% annualized) based on the current US$0.58/share trading price. Shareholders should confirm with their brokers to verify their ownership status on August 31, 2023. The upcoming dividend payment will represent approximately $37 million in total dividends paid in 2023 thus far and is an eligible dividend for the purposes of the Income Tax Act (Canada). Shareholders outside of Canada should contact their respective brokers or register agents for the appropriate tax election forms regarding this dividend.

Buyback Status

PetroTal briefly paused its buyback program on August 25, 2023 to allow purchased shares to clear its share registry. Buybacks have resumed on September 5, 2023 with another scheduled brief pause around the quarter end. Repurchased shares for July and August 2023 totaled 3,886,822 which equates to approximately $2.3 million in value to shareholders.

Production Update

Production in July and August 2023 has averaged 11,552 barrels of oil per day ("bopd") and 12,651 bopd respectively as the Company manages reduced barge movement to/from Brazil during the anticipated low river dry season. The Company expects to make up the volume shortfall if river levels revert to normal in the fourth quarter, and reiterates its full year guidance range of between 14,000 bopd and 15,000 bopd.

Currently the contracted PetroTal drilling rig is moving to the west part of the Bretana field where the new L2 West platform is expected to be delivered in September. Crews will work for about a month to complete the installation of the L2 West platform with drilling commencement of well 16H to occur in early November 2023.

Management Marketing Initiatives

The PetroTal management team will be presenting at the upcoming Pareto Conference in Oslo, Norway on September 20, 2023 followed by the Schachter Energy Conference in Calgary, Canada on October 14, 2023 and the TSX International E&P conference in Toronto on October 17, 2023. An updated investor presentation is now available on the Company's website www.petrotal-corp.com.

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) 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. In early 2022, PetroTal became the largest crude oil producer in Peru. 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. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.

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) 20 7770 6424

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

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

Peel Hunt LLP (Joint Broker)
Richard Crichton / David McKeown / Georgia Langoulant
T: +44 (0) 20 7418 8900

READER ADVISORIES

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.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/180428

by wpengine

PetroTal Announces Q2 2023 Financial and Operating Results

Record Q2 2023 production of 19,031 bopd (56% growth over Q1 2023)
Record Q2 2023 sales of 18,483 bopd (46% growth over Q1 2023)
60 days of production above 20,000 bopd in Q2 2023 and a quarter exit rate of 21,700 bopd

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - August 8, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to report its operating and financial results for the three and six months ended June 30, 2023 ("Q2").

Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements and management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2023, which are available on SEDAR at www.sedar.com and on the Company's website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars unless otherwise stated.

Key Selected Highlights

Achieved record average quarterly sales of 18,483 barrels ("bbls") of oil per day ("bopd"), up 46% from the first quarter ("Q1") 2023;
Produced a record 19,031 bopd in the quarter, up 56% from Q1 2023. During the quarter the Company posted 60 days with production over 20,000 bopd;
Exited the quarter in a strong cash position with $92.6 million in total cash ($17.3 million restricted), up 29% from end of Q1 2023;
As a result of excellent Q2 2023 performance, the Company will declare and pay in Q3 2023, a cash dividend of US$0.025 per common share, which includes the recurring US$0.015 per common share amount, plus an amount for a minimum liquidity sweep of US$0.01 per common share;

Exported oil sales through Brazil averaged 513,000 bbls per month. In April 2023 the Company had exported oil sales of approximately 590,000 barrels, that combined with Iquitos refinery deliveries represented total realized oil sales of 630,462 bbls for the month;
Commenced drilling well 15H on April 11, 2023, with first oil production in early June 2023, ahead of schedule. The well produced at an average of 7,920 bopd for the last 19 days in June 2023 and has averaged 7,140 bopd for the 30 day period from June 12, 2023 to July 11, 2023, prior to the start of the dry season;
Generated significant EBITDA and Free Funds Flow of $70.0 million ($41.63/bbl) and $37.7 million ($22.41/bbl) respectively, compared to $47.9 million ($42.22/bbl) and $7.9 million ($6.96/bbl) in Q1 2023;
Achieved Net Income in the quarter of $46.6 million (US$0.05/share) compared to $17.0 million (US$0.02) in Q1 2023; and,
During the quarter, the Company paid a dividend of US$0.015/share and repurchased 582,708 shares representing a total of $14.7 million of capital returned to shareholders (~3.4% of June 30, 2023 market capitalization).

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

"PetroTal delivered its strongest quarter to date in Q2 2023. Underpinned by unconstrained Brazilian export sales, the Company was able to produce over 20,000 bopd for 60 days which allowed the Company to achieve records in almost all major cash flow metrics including generating over $70 million of EBITDA. In addition, our Q2 2023 operating and direct transportation cost was $5.80/bbl versus $7.70/bbl in Q1 2023, showing the benefit of larger volumes on fixed unit costs, and demonstrating how hard the team has worked to keep field costs in check, despite an inflationary environment.

The Board and Management are pleased with the additions of Mr. Jose Contreras (Senior VP Operations) and Mr. Felipe Arbelaez Hoyos (independent non-executive director). These individuals are fitting in extremely well and adding significant value to the Company.

Looking ahead to Q3 2023, the Amazon River water level is currently low near Iquitos and is consequently forecast to be low on the Brazilian side near the end of Q3 2023, leading to a lighter barge fill requirement projected for most of the quarter. As a result, the Company is reiterating its full year oil production guidance of 14,000 - 15,000 bopd. This showcases the importance of securing other oil export routes and promoting the full and consistent operation of the ONP pipeline, both of which the Company are committed to advancing."

Selected Three and Six Month Ended June 30, 2023 Highlights

The table below summarizes PetroTal's comparative financial position.

		Three Months Ended										Six Months Ended
		Q2-2023					Q1-2023					Q2-2023					Q2-2022
($ thousands US)		$/bbl			$ 000		$/bbl			$ 000		$/bbl			$ 000		$/bbl			$ 000
Average Production (bopd)					19,031					12,193					15,631					13,114
Average sales (bopd)					18,483					12,618					15,567					15,065
Total sales (bbls)					1,681,962					1,135,611					2,817,573					2,726,675
Average Brent price	$	77.29				$	82.51				$	79.73				$	101.54
Contracted sales price, gross	$	77.88				$	80.32				$	78.86				$	99.42
Tariffs, fees and differentials		($21.26	)				($20.01	)				($20.75	)				($21.97	)
Realized sales price, net	$	56.61				$	60.31				$	58.11				$	77.44
Oil revenue⁽¹⁾	$	56.61		$	95,229	$	60.31		$	68,494	$	58.11		$	163,723	$	77.44		$	211,187
Royalties⁽²⁾	$	5.29		$	8,899	$	5.49		$	6,238	$	5.37		$	15,137	$	5.31		$	14,477
Operating expense	$	4.22		$	7,100	$	5.60		$	6,354	$	4.78		$	13,454	$	6.75		$	18,416
Direct Transportation:
Diluent	$	0.98		$	1,641	$	1.20		$	1,368	$	1.07		$	3,009	$	2.49		$	6,794
Barging	$	0.53		$	896	$	0.80		$	906	$	0.64		$	1,802	$	1.63		$	4,436
Diesel	$	0.07		$	120	$	0.10		$	113	$	0.08		$	233	$	0.30		$	828
Storage	$	0.00		$	0	$	0.00		$	0	$	0.00		$	0	$	1.27		$	3,453
Total Transportation	$	1.58		$	2,657	$	2.10		$	2,387	$	1.79		$	5,044	$	5.69		$	15,511
Net Operating Income⁽⁴⁾	$	45.53		$	76,573	$	47.12		$	53,515	$	46.17		$	130,088	$	59.70		$	162,783
G&A	$	3.89		$	6,548	$	4.90		$	5,559	$	4.30		$	12,107	$	3.62		$	9,861
EBITDA⁽³⁾	$	41.63		$	70,025	$	42.22		$	47,956	$	41.87		$	117,981	$	56.08		$	152,922
Adjusted EBITDA⁽³⁾	$	38.09		$	64,064	$	35.95		$	40,825	$	37.23		$	104,889	$	49.69		$	135,495
Net Income	$	27.73		$	46,635	$	14.95		$	16,979	$	22.58		$	63,614	$	54.56		$	148,759
Basic Shares Outstanding					922,306					883,800					922,306					844,721
Market Capitalization⁽⁶⁾				$	433,484				$	521,046				$	433,484				$	450,490
Net Income/Share				$	0.051				$	0.019				$	0.069				$	0.176
Capex				$	26,367				$	32,919				$	59,286				$	41,553
Free Funds Flow^{(3) (7)}	$	22.41		$	37,697	$	6.96		$	7,906	$	16.19		$	45,604	$	34.45		$	93,941
% of Market Capitalization⁽⁶⁾					8.7%					1.5%					10.5%					20.9%
Total Cash⁽⁸⁾				$	92,552				$	71,635				$	92,552				$	77,016
Net Surplus (Debt)^{(3) (9)}				$	97,523				$	71,117				$	97,523				$	79,401

Approximately 91% of sales over Q2 2023 were through the Brazilian route vs 86% in Q1 2023.
Royalties in Q2 2023 include the impact of the 2.5% community social trust.
Non-GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See "Selected Financial Measures" section.
Net operating income represents revenues less royalties, operating expenses, and direct transportation; See "Selected Financial Measures" section.
Adjusted EBITDA is net operating income less general and administrative ("G&A") and plus/minus realized derivative impacts. See "Selected Financial Measures" section.
Market capitalization for Q2 2023, Q1 2023, and Q2 2022 assume share prices of US$0.47, US$0.59, and US$0.53, respectively.
Free funds flow is defined as adjusted EBITDA less capital expenditures. See "Selected Financial Measures" section.
Includes restricted cash balances.
Net Surplus/(Debt) = Total cash + all trade and VAT receivables + short and long term net derivative balances - total current liabilities - long term debt - non current lease liabilities - net deferred tax - other long term obligations.

Q2 2023 Financial Commentary and Variance Summary:

Record oil sales in the quarter driving considerable Net Operating Income ("NOI")⁽¹⁾, EBITDA, and Net Income;
Solid per barrel OPEX and run rate G&A metrics of $5.80/bbl and $3.89/bbl respectively, compared to $7.70/bbl and $4.90/bbl in the prior quarter; and,
Strong liquidity demonstrated with the Company's net surplus⁽¹⁾ growing to over $97 million from $71 million in the prior quarter.

⁽¹⁾^{See "Selected Financial Measures"}

		Three months ended							Six months ended
US$/bbl Variance Summary		Q2 2023		Q1 2023		Variance			Q2 2023		Q2 2022		Variance
Oil Sales (in thousands of barrels)		1,682		1,136		545			2,818		2,727		91
Contracted Brent Price	$	77.88	$	80.32		($2.44	)	$	78.86	$	99.42		($20.56	)
Realized Sales Price	$	56.61	$	60.31		($3.70	)	$	58.11	$	77.44		($19.33	)
Royalties	$	5.29	$	5.49		($0.20	)	$	5.37	$	5.31	$	0.06
Total OPEX	$	5.80	$	7.70		($1.90	)	$	6.57	$	12.44		($5.87	)
Net Operating Income⁽¹⁾	$	45.53	$	47.12		($1.59	)	$	46.17	$	59.70		($13.53	)
G&A	$	3.89	$	4.90		($1.01	)	$	4.30	$	3.62	$	0.68
EBITDA	$	41.63	$	42.22		($0.59	)	$	41.87	$	56.08		($14.21	)
Net Income	$	27.73	$	14.82	$	12.91		$	22.58	$	54.56		($31.98	)
Free Funds Flow⁽²⁾	$	22.41	$	6.96	$	15.45		$	16.19	$	34.45		($18.26	)

Net operating income represents revenues less royalties, operating expenses, and direct transportation; See "Selected Financial Measures" section.
Free funds flow is defined as adjusted EBITDA less capital expenditures. See "Selected Financial Measures" section.

Financial and Operating Updates Subsequent to June 30, 2023

Workovers and Rig Move. PetroTal moved its contracted drilling rig to service three of its older Bretana oil wells. The three workovers were all completed in July for an average cost of approximately $1.6 million per well including rig mobilization costs. At approximately $85/bbl Brent and netbacks of $46/bbl, the wells need to generate an estimated 35,000 barrels of oil each to payout which is estimated to take two to three months based on internal forecasted oil rates. Initial daily rates seen thus far on each of the three wells have been positive and have initially ranged between 600 to 845 bopd. The new west drilling platform ("L2 West Platform") is expected to be ready by mid September at which time the rig will be moved to drill the 16H well with expected spud by mid October 2023. In the interim, the rig is ongoing preventive maintenance.

Current Oil Production. July 2023 average production was 11,552 bopd and was impacted by low river levels and barging sales constraints with August 2023 expected to average at approximately 13,000 bopd. These rates have been intentionally constrained to manage barge river logistics during the current dry season.

ONP Update. As announced in May 2023, the Northern Peruvian Pipeline ("ONP") briefly resumed pipeline operations on April 12, 2023, after over a year of being shut down for maintenance and social unrest related reasons. Currently, the pipeline is operational, however, the Company is not delivering any oil into this route, due to Petroperu's credit line not being available. If their credit facility was available, the Company could continue producing in the order of 20,000 bopd during the ongoing dry season. The Company is also pleased to announce it has received the final payment from Petroperu of last year's outstanding $64 million revenue true-up. Outstanding receivables from Petroperu now total $22 million which relate to oil delivered to the ONP in early 2022.

Return of Capital Policy. In Q1 2023, the Company formalized its dividend and share buyback policy stating, subject to maintaining a minimum liquidity level of $60 million including a portion of unused credit facility capacity, the Company will (a) pursue a share buyback program of approximately $3 million per quarter and (b) pay eligible dividends in 2023 equal to the sum of US$0.015 per share per quarter and incremental amounts from available cash, consistent with maintaining the minimum liquidity level.

Q2 2023 Dividend Declaration. Based on the Company's current excess liquidity above $60 million and the described return of capital policy above, PetroTal confirms that a cash dividend of US$0.025 per common share will be declared and paid in Q3 2023. This represents a 4.7% quarterly dividend yield (18.7% annualized) based on current share price and includes the recurring US$0.015 per common share amount that was paid in the prior quarter, plus an amount for a minimum liquidity sweep equal to approximately US$0.01 per common share. The total dividend of US$0.025 per common share will be paid according to the following timetable:

Ex dividend date: August 30, 2023
Record date: August 31, 2023
Payment date: September 15, 2023

The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada) and investors should note that the excess liquidity sweep portion of all future dividends may be subject to fluctuations up or down in accordance with the Company's return of capital policy. Shareholders outside of Canada should contact their respective brokers or registrar agents for the appropriate tax election forms regarding this dividend.

Mr. Felipe Arbelaez Hoyos Appointed to PetroTal's Board. As announced on July 6, 2023, the Company welcomed Mr. Felipe Arbelaez Hoyos, who was recently appointed to PetroTal's board as an independent non-executive director. Mr. Arbelaez Hoyos is currently the Senior Vice President Hydrogen and Carbon Capture Systems for BP Energy in London and brings an in depth commercial and ESG knowledge base to the Company.

H2 2023 Outlook and Full Year Guidance

Based on emerging seasonably low river levels through the Amazon River from Iquitos to Manaus, and temporary longer than normal border barge permitting times, the Company is re-iterating its 2023 guidance. Based on river system data, the Company estimates the dry season will now be similar to the 2022 level, however, has factored this into its guidance as previously stated. From a full year cash flow perspective, the Company also estimates having similar free cash flow to previous guidance.

Updated Corporate Presentation

The Company has updated its Corporate Presentation, which is available for download or viewing at www.petrotal-corp.com.

Enercom Conference in Denver

The Company will be presenting at the upcoming Enercom Energy Conference in Denver, Colorado on August 14, 2023 and will be posting a replay of the presentation on its website shortly after.

Q2 2023 webcast link

Please join the Company for its Q2 2023 webcast on August 8, 2023 at 9am CT and 3PM London Time.

https://stream.brrmedia.co.uk/broadcast/646f74f3c0e842f4c6ea72ed

ABOUT PETROTAL

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) 20 7770 6424

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

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

Peel Hunt LLP (Joint Broker)
Richard Crichton / David McKeown / Georgia Langoulant
T: +44 (0) 20 7418 8900

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, oil production levels and guidance, including the ramp up and resumption of shut-in production. 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. Without limitation, this press release contains forward-looking statements pertaining to: PetroTal's drilling, completions, workovers and other activities; the Company's expectation that workovers of Bretana oil wells will provide strong economics; anticipated future production and revenue; drilling plans including the timing of drilling, commissioning, and startup (including in respect of well 16H, well 17H and the L2 West Platform); expectations surrounding disrupted barge logistics and the consequences in respect thereof, including in relation to the Company's H2 2023 production guidance; forecasted conditions for the remainder of 2023 and consequences thereof including the forecast that the Amazon River's elevation will be low on the Brazilian side near the end of the third quarter of 2023 leading to lighter barge fill requirement projections and lessening PetroTal's H2 2023 production levels; expectation that construction of the L2 West Platform will be completed in September 2023 and corresponding effect on the timing of well 16H drilling and development; expectations relating to the ONP reopening including in respect of exportation volumes; expectations surrounding oil production rates throughout the remainder of 2023 including that it will average approximately 13,000 bopd in August 2023; plans to commence drilling well 17H in December 2023 and anticipated costs in respect of the same; intentions with respect to return of capital, including quarterly eligible dividend payments equal to the sum of US$0.015 per share per quarter (and incremental amounts from available cash, consistent with maintaining the minimum liquidity level) and share buybacks of approximately $3 million per quarter; the Company's Q2 2023 declaration of cash dividends in respect of Q2 2023 operations and timing thereof. In addition, statements relating to expected production, reserves, recovery, replacement, 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. 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, the ability of government groups to effectively achieve objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, 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 impact of inflation on costs, 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, future river water levels, 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; changes in the financial landscape both domestically and abroad, including volatility in the stock market and financial system; and wars (including Russia's war in Ukraine). Please refer to the risk factors identified in the Company's most recent AIF and MD&A 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 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.

SPECIFIED FINANCIAL MEASURES: This press release includes various specified financial measures, including non-GAAP financial measures, non-GAAP financial ratios and capital management measures as further described herein. These measures do not have a standardized meaning prescribed by generally accepted accounting principles ("GAAP") and, therefore, may not be comparable with the calculation of similar measures 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. "Adjusted EBITDA" (non-GAAP financial measure) is calculated as consolidated net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortization and adjusted for G&A impacts and certain non-cash, extraordinary and non-recurring items primarily relating to unrealized gains and losses on financial instruments and impairment losses, including derivative true-up settlements. PetroTal utilizes adjusted EBITDA as a measure of operational performance and cash flow generating capability. Adjusted EBITDA impacts the level and extent of funding for capital projects investments. Reference to EBITDA is calculated as net operating income less G&A. "Net Operating Income" (non-GAAP financial measure) is calculated as revenues less royalties, operating expenses, and direct transportation. The Company considers Net Operating Income measure as they demonstrate Company's profitability relative to current commodity prices. "Net surplus (debt)" is calculated by adding together total cash, trade and VAT receivables, and short and long-term net derivative balances less total current liabilities, long-term debt, non-current lease liabilities, deferred tax, and other long-term obligations. Net surplus (debt) is used by management to provide a more complete understanding of the Company's capital structure and provides a key measure to assess the Company's liquidity. "Free funds flow" (non-GAAP financial measure) is calculated as net operating income less G&A less exploration and development capital expenditures less realized derivative gains/losses and is calculated prior to all debt service, taxes, lease payments, hedge costs, factoring, and lease payments. Management uses free funds flow to determine the amount of funds available to the Company for future capital allocation decisions. Please refer to the MD&A for additional information relating to specified financial measures. "Funds flow provided by operations" (non-GAAP financial measure) includes all cash generated from operating activities and is calculated before changes in non-cash working capital. "Free cash flow" (non-GAAP financial measure) is calculated as EBITDA less G&A less Capex prior to the realization of any derivative impacts.

Eligible Dividend: An eligible dividend is one which is characterized as such by the dividend-paying corporation for Canadian residents. The primary benefit of an eligible dividend is that it benefits from an enhanced gross-up and credit regime at the shareholder level (i.e., the shareholder pays less tax on eligible dividends than non-eligible dividends). This is meant to compensate for the higher general corporate tax rate paid by non-CCPC's on their income and generally preserve integration of Canada's tax rates. As an example, for federal income tax purposes the gross-up rate for eligible dividends is 38% (as compared to 15% for non-eligible dividends) such that the amount of the dividend is multiplied by 1.38 to determine the taxable income to the shareholder. The dividend tax credit for eligible dividends is additionally increased to 6/11 (or 15.02%), as compared to 9/13 (9%) for non-eligible dividends, to offset the greater income inclusion to the taxpayer. Each province provides similar relief on the tax they would otherwise levy on the dividends, although the effective gross-up and credit differs by province.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's H2 2023 guidance and components thereof, prospective results of operations and production, infrastructure costs, free funds1 flow and components thereof (including total EBITDA, tax and Capex), revenue, margins, net operating income and shareholder returns 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 and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in PetroTal's guidance. The Company's actual results may differ materially from these estimates.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/176421

by wpengine

PetroTal Announces Record Production in Q2 2023, New Director and Other Updates

Record quarterly production of 19,031 bopd in Q2 2023
The Company welcomes Mr. Felipe Arbelaez Hoyos as an independent director

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - July 6, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the following operational and corporate updates, including the appointment of Mr. Felipe Arbelaez Hoyos to PetroTal's Board as an independent non-executive director.

Record Q2 2023 Production

PetroTal achieved a record production of 19,031 barrels of oil per day ("bopd") in Q2 2023. This was underpinned by robust production from the Company's newly drilled 15H well and by delivering maximum sales volume through the Brazilian route for most of the quarter. During its first 25 days of production, the 15H well has averaged approximately 7,300 bopd, with its most recent rate reported at 6,040 bopd after accumulating 182,500 barrels of crude oil. Early in Q2 2023, the Company also brought online well 14H with its most recent rate reported at approximately 2,300 bopd.

During the second quarter, PetroTal constrained approximately 25% of its production capacity due to the ongoing Northern Peruvian Pipeline ("ONP") closure and six days of planned maintenance, which coincided with a brief period of social disruption.

2023 Production Guidance

The Company is now moving its contracted drilling rig to service two of the initial Bretana oil wells. As initially forecast, the next location (well 16H) will commence drilling in late Q3 2023, once the new L2 West drilling platform has been fully tied in. PetroTal continues to monitor the Amazon River levels on the Brazilian side as the peak dry season settles in, and by next month the Company should be able to either reaffirm or upgrade its current 2023 guidance.

PetroTal will continue to drill new wells while oil prices allow for quick capital recovery, ensuring the Company builds a steady base of oil producing wells that will extend Bretana's free cash flow proposition for the long term.

Cash and Liquidity Update

PetroTal exited Q2 2023 with approximately $75 million of unrestricted cash and $17 million of restricted cash for a total of $92 million. Restricted cash includes amounts reserved for the social trust funds to be deposited at a later date. The robust cash position supports future return of capital efforts to shareholders in the form of regular dividends, special dividends and share buybacks. During Q2 2023, the Company purchased 582,708 shares at an average price of US$0.56/share pursuant to the share buyback program. Accounts receivable of approximately $100 million are contractually current, with accounts payable of approximately $59 million, primarily due within the next 50 days.

Felipe Arbelaez Hoyos Appointed to PetroTal's Board

The Company welcomes Mr. Felipe Arbelaez Hoyos, who was recently appointed to PetroTal's Board. Mr. Arbelaez Hoyos is joining as an independent non-executive director and brings in depth ESG and commercial experience. Mr. Arbelaez Hoyos is currently the Senior Vice President Hydrogen and Carbon Capture Systems ("CCS") for BP Energy in London. Mr. Arbelaez Hoyos is a Mechanical Engineer with a Masters in both Mechanical Engineering and Finance.

The following additional information is provided in accordance with paragraph (g) of schedule Two of the AIM Rules for Companies.

Mr. Felipe Arbelaez Hoyos (aged 53)

Current Directorships	Directorships held over the past 5 years
BP Alternative Energy Investments Limited	Morgan Offshore Wind Limited
Areh Top Co Pty Ltd	Mona Offshore Wind Limited
NW Interconnected Power Pty Ltd	Mona Offshore Wind Holdings Limited
Arbeval LLC (US)	Morgan Offshore Wind Holdings Limited
	Morven Offshore Wind Limited
	BP Exploration Peru Limited
	BP Exploration Orinoco Limited
	Morven Offshore Wind Holdings Limited
	Lightsource BP Renewable Energy Investments Limited
	BP Exploration Argentina Limited

Other than the information contained within this announcement, there is no further information required to be disclosed pursuant to paragraph (g) of Schedule Two of the AIM Rules.

Social Updates

The Company continues to experience normal operations and river activities. In addition, there have been many positive meetings between The Indigenous Association for Development and Conservation of Bajo Puinahua ("AIDECOBAP"), Perupetro, Junta Autonoma del Puinahua ("JAP"), Gobierno Regional de Loreto ("GOREL"), and the Puinahua District Municipality outlining executive committee roles and controls, with the latest meetings aiming to adjust the funds bylaws. PetroTal is not part of the executive committee and does not feel this will impact the quality of the fund's internal controls imposed by the other members, provided the selected Project Management Office ("PMO") is a recognized firm so proper audit and project management occurs within the social trust.

Peru's congress recently approved a new Canon distribution law that will allow producing districts to receive a greater share of resource profits back from the Peruvian government by up to 20x previous amounts. The new Canon distribution should promote peace and alignment as the entire Puinahua district and the Requena province where it is located will benefit, as well as other oil producing districts and the provinces where they are located.

Q2 2023 webcast link

Please join the Company for its Q2 2023 webcast on August 8, 2023 at 9am CT and 3PM London Time.

https://stream.brrmedia.co.uk/broadcast/646f74f3c0e842f4c6ea72ed

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

"The Company was extremely focused on outperforming expectations in Q2 2023 to try and recapture shut in volumes from barging travel time normalization in Q1 2023. With Q2 2023's average production at 19,031 bopd, we are now slightly ahead of cumulative first half 2023 guidance. We are also very excited that Mr. Felipe Arbelaez Hoyos has joined our Board of Directors. He brings an advanced ESG knowledge base to the Company, in addition to extensive commercial and crude trading experience."

ABOUT PETROTAL

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) 20 7770 6424

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

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

Peel Hunt LLP (Joint Broker)
Richard Crichton / David McKeown / Georgia Langoulant
T: +44 (0) 20 7418 8900

READER ADVISORIES

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.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/172486

by wpengine

PetroTal Announces Voting Results of Shareholders' Meeting and Operational Updates

Illegal River Blockade Lifted and Oil Production at 22,000 bopd

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - June 20, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the following operational updates, voting results from the annual shareholder's meeting, director resignation and appointment of a new joint broker.

Illegal River Blockade Removed

On June 10, 2023, The Indigenous Association for Development and Conservation of Bajo Puinahua ("AIDECOBAP") removed the illegal river blockade that commenced on June 3, 2023. The blockade removal also included releasing both the Peruvian and Brazilian oil convoys seized early in the demonstration. No injuries to crew members were reported after their release and no oil spills or operational accidents occurred through the transition.

AIDECOBAP agreed to remove the illegal blockade after an alliance act ("Acta") promoted by the Regional Governor of Loreto was signed by the Regional Governor, Perupetro, Puinahua's District Municipality ("PDM") and AIDECOBAP; but was not signed by the Junta Autonoma del Puinahua ("JAP") that represents the majority of the population, nor by PetroTal. The Acta also reconstituted the 2.5% Fund's Executive Committee by removing PetroTal's representation, and adding the Regional Government of Loreto, in its place. The other four members remained, which include AIDECOBAP, the JAP, Perupetro, and the PDM. The Company does not recognize the Acta or consider it a binding legal document. Given the lack of alignment, we are encouraged that the Prime Minister's Governance Office has taken the lead in ensuring a peaceful and long-lasting resolution.

Removal of the illegal blockade and release of the oil convoys is a positive step for the overall safety in the Loreto area, however, per the above, the Company remains cautious, yet hopeful, that democracy will prevail in deciding who best manages the social fund and the best allocation of its resources in the future.

Operations Update

With river access reopened, the Peruvian and Brazilian oil convoys have resumed their travel to Iquitos and Bretana, respectively. PetroTal's field had been shut in since June 6, 2023 for planned technical maintenance/installation work as previously announced, which the Company completed on June 11, 2023, initiating line fill operations concurrently. PetroTal quickly ramped up production averaging nearly 22,000 barrels of oil per day ("bopd") for the past seven days. Though the river blockade disrupted operational logistics, the Company anticipates being able to maintain production near 22,000 bopd, subject to barge availability, over the coming weeks. At these levels, the Company estimates that average production during Q2 2023 would be 5% higher than the 17,000 bopd production guidance previously given.

Robust Production From Well 15H

Well 15H, formally commenced full daily production on June 12, 2023 after the river blockade was lifted and the well could be completely opened. The well was completed on schedule and at a cost of approximately $14.9 million, which included a sidetrack caused by drilling tool challenges. Over the past seven days the well has produced at an average rate of 8,700 bopd, ranking it near the top of initial producers drilled to date.

Completed Dividend Payment

PetroTal is pleased to announce the first successful funding of its reinitiated dividend on June 15, 2023 of approximately $14.5 million based on Q1 2023 results. The Company plans to set and approve its Q2 2023 dividend level at its upcoming early August 2023 board meeting.

AGM Voting Results

The Company is pleased to announce that all resolutions at the annual general and special meeting of shareholders held on June 15, 2023 were fully authorized and approved. A total of 376,662,086 common shares representing approximately 42.6% of PetroTal's issued and outstanding common shares were represented by shareholders present in person or by proxy at the meeting.

At the meeting, by ordinary resolution, shareholders approved setting the number of directors to be elected at the meeting at seven. However, management only designated six nominees, with one space left vacant for an additional director to be added as may be advisable during the forthcoming year. Votes For (Percentage): 376,040,727 (99.84%)

At the meeting, all of the nominees proposed as directors by management were duly elected as directors of PetroTal. The results of the vote were as follows:

	Votes For		Votes Withheld
Director	#	%	#	%
Manuel Pablo Zúñiga-Pflücker	334,953,723	99.55	1,503,690	0.45
Mark McComiskey	327,594,704	97.37	8,862,709	2.63
Gavin Wilson	328,621,681	97.67	7,835,732	2.33
Eleanor J. Barker	334,900,764	99.55	1,515,774	0.45
Roger M. Tucker	334,925,873	99.54	1,531,540	0.46
Jon Harris	334,952,646	99.55	1,504,767	0.45

The Company also announces the retirement of Mr. Luis Carranza from the PetroTal board, effective June 15, 2023. Mr. Carranza did not seek re-election at the annual shareholder's meeting. PetroTal thanks Mr. Carranza for his service to the Company since September 2022.

In addition, shareholders approved by ordinary resolution the appointment of Deloitte LLP as auditors of the Company to hold office until the next annual meeting, and the directors were authorized to fix their remuneration. Votes For (Percentage): 375,890,561 (99.80%)

At the meeting, shareholders approved by ordinary resolution the Company's new stock option plan as set forth and described in PetroTal's management information circular dated May 3, 2023 (the "Circular") and the grant of unallocated stock options issuable under this stock option plan. Votes For (Percentage): 274,804,261 (81.68%)

At the meeting, shareholders approved by ordinary resolution the Company's new performance and restricted share unit plan as set forth and described in the Circular and the grant of unallocated share units issuable thereunder. Votes For (Percentage): 268,494,613 (79.80%)

PetroTal Welcomes Peel Hunt LLP as Joint Broker

PetroTal is please to announce the appointment of Peel Hunt LLP ("Peel Hunt") as joint broker with immediate effect, alongside Stifel Nicolaus Europe Limited. The Company would like to welcome Peel Hunt and thank Auctus Advisors for their contribution since inception of the Company.

Updated Investor Presentation

The Company has posted an updated corporate presentation on its website for all interested parties to access. Please see the new version at www.petrotal-corp.com to download a copy.

ABOUT PETROTAL

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)
Ritchie Balmer / James Spinney / Robert Collins
T: 44 (0) 207 409 3494

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

Peel Hunt LLP (Joint Broker)
Richard Crichton / David McKeown / Georgia Langoulant
T: +44 (0) 20 7418 8900

READER ADVISORIES

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.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/170650

by wpengine

PetroTal Announces Update to the AIDECOBAP Illegal River Blockade

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - June 9, 2023) - -PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") announces the following updates related to the illegal river blockade.

Illegal River Blockade Update

As of June 8, 2023, The Indigenous Association for Development and Conservation of Bajo Puinahua ("AIDECOBAP") seized and are holding two oil transport convoys. The first is an empty Brazilian convoy, with a crew of six and a total capacity of 70,000 barrels of oil that was traveling to the Bretana field. The second was a Peruvian convoy which contained approximately 40,000 barrels of oil and was destined for the Iquitos refinery. It has a crew of eight Peruvian nationals, none of whom are PetroTal employees. The Company does not own or operate either convoy, both of which are being held near the town of 7 de Junio. During the hostile takeover of the convoys, a Navy sailor was injured in the head with a spear requiring minor medical attention. The Peruvian navy has been activated and will remain nearby to monitor the integrity of the vessels and health of the crew.

AIDECOBAP continues to prevent the transit of ships in the Puinahua channel with a group of approximately sixty people and ten boats. The residents of Bretana have expressed their strong opposition to the blockade of the river system which has halted PetroTal's operations. On June 8, 2023, The Presidency of the Council of Ministers ("PCM") and the Ministry of Energy and Mines held a meeting with AIDECOBAP to better understand their claims and reasons for engagement. PetroTal was also invited to this meeting and a de-escalation plan has been actioned which is a positive step towards reaching resolution.

The Company has, and always will, strive for full alignment between all working table and social fund members to achieve the social fund's objectives. PetroTal is working with all parties to help the Government of Peru generate a rapid, peaceful, and safe resolution to the blockade. The Company's 2023 oil production forecast included planned downtime and a 5% social downtime contingency in its 2023 guidance to allow for social disruption.

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSX: TAL, AIM: PTAL and OTCQX: PTALF) 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. In early 2022, PetroTal became the largest crude oil producer in Peru. 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. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.

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)
Ritchie Balmer / James Spinney / Robert Collins
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
T: +44 (0) 7711 627449

READER ADVISORIES

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

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/169413

by wpengine

PetroTal Announces AIDECOBAP Illegal River Blockade

PetroTal urges a peaceful and immediate end to demonstrations
Field production slowdown coincides with planned infrastructure tie-ins

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - June 8, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") announces an illegal and violent river blockade against vessels that provide services to PetroTal.

Illegal River Blockade

As of June 3, 2023, The Indigenous Association for Development and Conservation of Bajo Puinahua ("AIDECOBAP") has engaged in carrying out an illegal blockade in the Puinahua Canal against all ships providing services to the Company, including barges that transport oil, and vessels carrying critical camp supplies.

AIDECOBAP is using aggressive actions which are endangering the lives of vessel crew and local residents. The blockade ignores the recently signed agreements which adopt a transparent, fair, and participatory approach to allocating social fund resources where over US$8 million has already been accumulated from PetroTal into a restricted bank account. During social related downtime, over US$50,000 per day is forfeited from future trust allocations. PetroTal has called for an immediate and peaceful end to the blockade so that safe river transportation operations can resume, as previously formalized by the working table committee participants and announced on May 30, 2023.

This river access disruption coincides with planned production reductions that will allow the Company to tie in previously installed infrastructure and modify production operations that will economically benefit future oil production. June 2023 month to date oil production has averaged approximately 10,000 barrels of oil per day ("bopd') prior to the field installation work, commencing June 8, 2023, where the field will be shut in for approximately five days. The Company's 2023 oil production forecast included this planned downtime and a 5% social downtime contingency in its 2023 guidance to allow for social disruption.

ABOUT PETROTAL

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)
Ritchie Balmer / James Spinney / Robert Collins
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
T: +44 (0) 7711 627449

READER ADVISORIES

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/169217

by wpengine

PetroTal Announces Social Fund By-Laws Approved by Working Table Committee

Community social fund, led by PetroTal, achieves next step in formalization process

Redistribution of the Canon to Loreto increased by approximately six times

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - May 30, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to report the technical working table committee for the 2.5% Block 95 community social trust fund ("social trust") has approved bylaws governing and regulating the social trust. This was a required follow up step from the March 9, 2023 announced publication of the Supreme Decree, signed by Peru's President authorizing Petroperu to execute the amendment incorporating the 2.5% social trust to the Block 95 license contract.

The approval of the by-law regulations was a result of constant and coordinated efforts between members of the working table committee and the population of Puinahua with its regional governance members. Outlined in the regulation is the establishment of a formal Board of Directors led by representatives from the Government of Peru, PetroTal, and groups representing the local population near the Bretana oil field.

Canon¹ Redistribution

The Peruvian Economic Commission of Congress has approved the redistribution of the Canon for the Loreto region. If approved by the Executive, as expected, the share of the Canon going to the Loreto producing district should increase approximately six times starting in 2024. This would allow the Puinahua Municipality to increase its budget and, together with the 2.5% social trust fund, make a significant impact on the lives of the Puinahua district population.

¹ Canon is the method used by the central government to allocate funds back to various producing regions and communities in Peru.

ABOUT PETROTAL

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)
Ritchie Balmer / James Spinney / Robert Collins
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
T: +44 (0) 7711 627449

READER ADVISORIES

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/167944

by wpengine

Commencement of Share Buyback and Dividend Timetable

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - May 16, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the commencement of its previously announced share buyback plan, following approval by the Toronto Stock Exchange ("TSX") of its normal course issuer bid ("NCIB").

PetroTal further announces today that the Q1 2023 dividend of US$0.015/share will be paid on June 15, 2023.

Q1 2023 Dividend Timetable

PetroTal is pleased to confirm that its cash dividend of US$0.015 per common share in respect of Q1 2023 operations will paid according to the following timetable:

Ex-dividend date: May 30, 2023
Record date: May 31, 2023
Payment date: June 15, 2023

The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada). Shareholders outside of Canada should contact their respective brokers or registar agents for the appropriate tax election forms regarding this dividend.

Commencement of the Share Buyback Plan

PetroTal is pleased to commence a share buyback plan of approximately US$3 million per quarter (up to a maximum of US$12 million in the current program), following approval by the TSX of the Company's NCIB program ("Program"). The Company has entered into a buyback agreement with Stifel Nicolaus Europe Limited ("Stifel"), who will conduct the Program on PetroTal's behalf.

PetroTal expects that the NCIB will provide an additional tool to enhance total long-term shareholder returns. The Company believes that, at times, the prevailing share price does not reflect the underlying value of the common shares and the repurchase of its common shares for cancellation represents an attractive opportunity to improve PetroTal's per share metrics and thereby increase the value of the common shares.

The NCIB allows PetroTal to purchase up to 44,230,205 common shares, representing approximately 5% of its issued and outstanding common shares as at May 12, 2023, over a 12-month period commencing on May 18, 2023 and ending no later than May 17, 2024. Under the NCIB, purchases of common shares may be made through the facilities of the TSX, alternative trading systems in Canada (if eligible), and AIM, a market operated by the London Stock Exchange in accordance with applicable regulatory requirements. Purchases under the NCIB will be made through open market transactions at market price, as well as by other means as may be permitted under applicable securities laws. The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by the PetroTal's management. All common shares purchased under the NCIB will be cancelled.

Under the TSX rules, the total number of common shares PetroTal is permitted to purchase on the TSX is subject to a daily purchase limit of 190,542 common shares (representing 25% of the average daily trading volume of 762,168 common shares on the TSX, calculated from the initial date of listing on the TSX, being February 16, 2023 to the calender month ended April 30, 2023); provided that PetroTal may make one block purchase per calendar week that exceeds such limits.

In connection with the NCIB, PetroTal will enter into an automatic purchase plan ("ASPP") with Stifel. The ASPP is intended to allow for the purchase of common shares under the NCIB at times when PetroTal would ordinarily not be permitted to purchase common shares due to regulatory restrictions and self-imposed blackout periods. Under the ASPP, before entering into a blackout period, PetroTal may, but is not required to, instruct Stifel to make purchases under the NCIB within specified parameters. Such purchases would be at the discretion of Stifel based on parameters provided by the Company prior to the blackout period in accordance with the terms of the ASPP and in compliance with the rules and regulations of the TSX, AIM and applicable securities laws. Any purchase of common shares on the TSX or alternate trading systems in Canada will be completed by Stifel Nicolaus Canada Inc. acting as agent for Stifel. The ASPP has been pre-cleared by the TSX and will be implemented concurrently with the commencement of the NCIB. All purchases made pursuant to the terms of the ASPP will be included in computing the number of common shares purchased under the NCIB. Outside any blackout period, common shares may be purchased under the NCIB based on the discretion of the Company's management in compliance with applicable exchange rules and securities laws.

ABOUT PETROTAL

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)
Ritchie Balmer / James Spinney / Robert Collins
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
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 relating to the NCIB and the ASPP, including, but not limited to: the duration of the NCIB and potential purchases thereunder (including those made under the ASPP); anticipated advantages of the NCIB to the Company's shareholders including in respect of the Company's expectations of enhanced total long-term shareholder returns, increased common shares value correlating with improved per share metrics and positive impact on shareholder sentiment. 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", "intend" and similar expressions. The forward-looking statements provided in this press release are based on management's current belief, based on currently available information, as to the outcome and timing of future events.

PetroTal cautions that its intention to proceed with the NCIB and other forward-looking statements relating to PetroTal are subject to all of the risks, uncertainties and other factors, which may cause the actual results, performance, capital expenditures or achievements of the Company to differ materially from anticipated future results, performance, capital expenditures or achievement expressed or implied by such forward-looking statements, including the Company's intentions regarding the NCIB and its ability to achieve related anticipated benefits. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, business performance, legal and legislative developments including changes in tax laws and legislation affecting the oil and gas industry, credit ratings and risks, fluctuations in interest rates and currency values, changes in the financial landscape both domestically and abroad, including volatility in the stock market and financial system, wars (including Russia's war in Ukraine), regulatory developments, 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 and the occurrence of weather-related and other natural catastrophes. Readers are cautioned that the foregoing list of factors is not exhaustive. Please refer to the annual information form for the year ended December 31, 2022 and the management's discussion and analysis for the year ended December 31, 2022 for additional risk factors relating to PetroTal, which can be accessed either on PetroTal's website at www.petrotal-corp.com or under the Company's profile on 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.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/166169

by wpengine

PetroTal Announces Q1 2023 Financial and Operating Results

Delivered Q1 2023 production of 12,193 bopd representing 17.5% growth over Q4 2022
Achieved record sales volumes of 21,500 bopd in March 2023 through Brazil exports and Iquitos
Fully repaid the Company's corporate bonds
Formalized the shareholder return policy and minimum liquidity requirement

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - May 11, 2023) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to report its operating and financial results for the three months ("Q1") ended March 31, 2023.

Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements and management's discussion and analysis ("MD&A") for the three months ended March 31, 2023, which are available on SEDAR at www.sedar.com and on the Company's website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars unless otherwise stated.

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

"I am pleased to report that the Company has achieved production in excess of 20,000 bopd for over 74 days since late February 2023. Q1 2023 was a transformational quarter for our business, as we repaid our corporate bonds in full, reinitiated a material and rewarding return of capital program, and upsized the barging fleet. With the recent permit approval of the L2 West Platform, the Company can now drill for more than two years ahead, allowing for increasing production levels to be achieved. Our value proposition is very clear; we can deliver both material production growth per share and a significant free cash flow yield, instead of having to prioritize one over the other."

Q1 2023 Selected Highlights

Achieved average quarterly sales of 12,618 barrels ("bbls") of oil per day ("bopd"), up 21% from the fourth quarter ("Q4") of 2022;
Delivered monthly record sales in March 2023, with over 660,000 bbls of oil sold through Brazil and to the Iquitos refinery;
Fully repaid the remaining $80 million in corporate bonds in the first quarter of 2023, paving the way for a significant dividend and share buyback program to commence in the second quarter of 2023;
Reinstated a return of capital program, including a USD$0.015 per share quarterly eligible dividendpayable in June 2023, representing an annualized yield of 10% based on a US$0.60/share trading price and intends to commence a normal course issuer bid ("NCIB") share buyback program in the second quarter of 2023, subject to approval by the Toronto Stock Exchange ("TSX");
Generated $53.5 million ($47.12/bbl) and $47.9 million ($42.23/bbl) of net operating income and EBITDA, respectively over Q1 2023, an average 10.5% increase from the Q4 2022 net operating income and EBITDA, as a result of higher sales volumes in Q1 2023 compared to Q4 2022;
In conjunction with the oil trading company handling Bretana oil exports through Brazil, negotiated an upsized barging fleet, thereby allowing the Company to have access to over 1.5 million bbls of barging capacity, an increase of approximately 25% from the previous capacity of 1.2 million bbls;
Completed well 14H on March 27, 2023. The well has produced at a constrained average rate of 2,880 bopd during May 2023 to date, in line with expectations;
Completed a fourth water disposal well in late January 2023, increasing the Company's disposal capacity to over 150,000 bbls of water per day ("bwpd") when fully tied into the Company's field disposal system; and,
Exited Q1 2023 with $71.6 million in total cash and a $71.1 million net surplus. (see note 9 below).

Selected Q1 2023 Financial and Operational Highlights

Q1-2023

Q4-2022

($ thousands)

$/bbl

$ thousands

$/bbl

$ thousands

Average Production (bopd) ⁽¹⁾

12,193

10,374

Average sales (bopd)

12,618

10,420

Total sales (bbls)

1,135,611

958,624

Average Brent price

82.51

88.61

Contracted sales price, gross⁽¹⁾

80.32

88.22

Tariffs, fees and differentials

($20.01

)

($21.71

)

Realized sales price, net

60.31

66.51

Oil revenue

60.31

68,494

66.51

63,755

Royalties⁽²⁾

5.49

6,238

6.08

5,824

Operating expense

5.60

6,354

7.42

7,115

Direct Transportation:

Diluent

1.20

1,368

1.33

1,274

Barging

0.80

906

0.86

824

Diesel

0.10

113

0.15

144

Storage

0.00

0.16

152

Total Transportation

2.10

2,387

2.50

2,394

Net Operating Income⁽⁴⁾

47.12

53,515

50.51

48,422

G&A

4.90

5,559

5.57

5,339

EBITDA⁽³⁾

42.22

47,956

38.78

43,083

Adjusted EBITDA⁽³⁾

35.92

40,825

37.91

36,338

Net Income

14.82

16,979

38.78

37,176

Basic Shares Outstanding

883,800

862,209

Market Capitalization⁽⁶⁾

521,046

431,104

Net Income/Share

0.019

0.043

Capex

32,919

32,024

Free Funds Flow⁽³^{) (}⁷⁾

8.13

7,906

3.80

4,314

% of Market Capitalization⁽⁶⁾

Total Cash⁽⁸⁾

71,635

119,969

Net Surplus (Debt)⁽³⁾⁽⁹⁾

71,117

74,225

Approximately 86% of sales over Q1 2023 were through the Brazilian route vs 84% in Q4 2022.
Royalties in Q1 2023 include the impact of the 2.5% community social trust.
Non-GAAP (defined below) measure that does not have any standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures presented by other entities. See "Selected Financial Measures" section.
Net operating income represents revenues less royalties, operating expenses, and direct transportation; See "Selected Financial Measures" section.
Adjusted EBITDA is net operating income less general and administrative ("G&A") and plus/minus realized derivative impacts. See "Selected Financial Measures" section.
Market capitalization for Q1 2023 and Q4 2022 assume share prices of US$0.59 and US$0.50, respectively.
Free funds flow is defined as adjusted EBITDA less capital expenditures. See "Selected Financial Measures" section.
Includes restricted cash balances.
Net Surplus/Debt = Total cash + all trade and VAT receivables + short and long term net derivative balances - total current liabilities - long term debt - non current lease liabilities - deferred tax - other long term obligations.

Financial and Operating Highlights Subsequent to March 31, 2023

Drilling Commencement of Well 15H. The Company commenced drilling well 15H on April 11, 2023. The well is expected to cost approximately $15 million with completion anticipated in mid June 2023. The well will reach approximately 4,550 meters in total depth with an expected 1,100 meter lateral section.

Approval of the L2 West Platform. On April 15, 2023, PetroTal received approval from Perupetro to install and finalize construction of a new west drilling platform ("L2 West Platform") at Bretana. This project is budgeted at approximately $11 million and will allow Q3 and Q4 2023 drilling locations to commence as scheduled in addition to locations in the 2024 and 2025 long range plan.

Robust Current Oil Production. Production was approximately 21,000 bopd for the month of April 2023 and has averaged 21,140 bopd in May 2023, to date. Near the end of April 2023, the Company fully recovered constrained production volumes from January and February 2023 and now is slightly ahead of plan year to date.

ONP Reopening. The Northern Peruvian Pipeline ("ONP") resumed pipeline operations on April 12, 2023, after over a year of being shut down for maintenance and social unrest related reasons. The Company expects that an estimated 270,000 bbls of oil already in the pipeline will be exported in late Q2 2023 at the Bayovar port by Petroperu, generating between $5 and $6 million in net revenue for the Company at current oil prices. PetroTal has not re-commenced shipping oil through the ONP. It will consider that option once Petroperu's full credit lines are reopened and functioning normally.

Return of Capital Policy. The Company has formalized its dividend and share buyback policy. Subject to maintaining a minimum liquidity level of $60 million, including unused credit facility capacity, the Company will a). pursue a share buyback program of approximately $3 million per quarter and b). pay eligible dividends in 2023 equal to the sum of USD$0.015 per share per quarter and incremental amounts from available cash consistent with maintaining the minimum liquidity level.

Strong Liquidity. The Company continues to receive regular scheduled payments from Petroperu and Brazil export revenue payments are current. Following payment of the June 2023 dividend, the Company anticipates having approximately $60 to $70 million of total cash.

2023 Virtual and in Person AGM

The Company is pleased to announce its 2023 annual general and special meeting of shareholders ("AGM") will be held on June 15, 2023 (10:00am MT/15:00 UK) at the offices of Stikeman Elliott LLP in Calgary, Alberta. The Company's Management Information Circular and Proxy Statement in respect of the AGM is available on SEDAR (www.sedar.com) and the Company's website (www.petrotal-corp.com).

Updated Corporate Presentation and Investor Webcast

PetroTal will host a virtual investor webcast meeting on May 15, 2023 beginning at 9:00am Central Time (3:00pm London time). See the link below to join the webcast. The Company has also provided an updated corporate presentation, with the Q1 2023 results, on its website.

https://stream.brrmedia.co.uk/broadcast/6436734e09685ed9886963e9

ABOUT PETROTAL

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)
Ritchie Balmer / James Spinney / Robert Collins
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
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: drilling, completions, workovers and other activities and the anticipated costs and results of such activities, including but not limited to costs relating to well 15H and estimated Q2 2023 net revenue generation relating to the ONP reopening; anticipated future production and revenue; drilling plans including the timing of drilling, commissioning, and startup (including in relation to the ONP, well 15H and the L2 West Platform); oil production levels; expectations relating to well 15H including in respect of its expected depth, completion and timing thereof; PetroTal's liquidity following payment of the June 2023 dividend; the Company's return of capital program including regular dividends and share buybacks under the NCIB; commencement and receipt of TSX approval for the NCIB and timing thereof; expectations relating to the ONP reopening including in respect of exportation volumes expected to be delivered by Petroperu at the Bayovar port through Q2 2023, resulting revenue generation and possibility of shipping oil through ONP (upon the reopening and normal functioning of Petroperu's full credit lines) and PetroTal's consideration of the same; expectations surrounding the installation and construction of the L2 West Platform including in respect of impact to commencement of Q3 and Q4 2023 drilling locations as well as locations in the 2024 and 2025 long range plan and timing thereof and the effect of PetroTal's engagement of Zeus Capital on international and UK investor exposure. All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, replacement, 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. More particularly, this press release contains statements concerning the future declaration and payment of dividends and the timing and amount thereof. Future dividend payments, if any, and the level thereof, is uncertain, as the Company's dividend policy and the funds available for the payment of dividends from time to time is dependent upon, among other things, free funds flow financial requirements for the Company's operations and the execution of its growth strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors beyond the Company's control. Further, the ability of PetroTal to pay dividends will be subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness. 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, the ability of the Ministry of Energy to effectively achieve its objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, 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 impact of inflation on costs, 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 including well 15H, future river water levels, 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; changes in the financial landscape both domestically and abroad, including volatility in the stock market and financial system; and wars (including Russia's war in Ukraine). In addition, the Company cautions that uncertainty regarding the full impact of the COVID-19 virus on global economies and oil demand and commodity prices, including the effects of recent outbreaks of COVID-19 in China, may have a negative effect on the Company's business, financial condition and results of operations. Please refer to the risk factors identified in the Company's AIF and MD&A 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 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. Recovery factor percentages include historical production.

DRILLING LOCATIONS: This press release discloses drilling inventory in three categories: (a) proved locations; (b) probable locations; and (c) possible locations, all of which are derived from the independent reserves report ("NSAI Report") prepared by Netherland, Sewell & Associates, Inc. ("NSAI") effective December 31, 2022 and account for drilling locations that have associated proved, probable and/or possible reserves, as applicable. There is no certainty that PetroTal will drill all booked drilling locations and if drilled there is no certainty that such locations will result in additional oil reserves or production. The drilling locations considered for future development will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the possible drilling locations have been de-risked by drilling existing wells in relative close proximity to such drilling locations, other possible drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil reserves or production.

SHORT-TERM PRODUCTION RATES: References in this press release to the peak rates and other short term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rate 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 such results should be considered to be preliminary.

SPECIFIED FINANCIAL MEASURES: This press release includes various specified financial measures, including non-GAAP financial measures, non-GAAP financial ratios and capital management measures as further described herein. These measures do not have a standardized meaning prescribed by generally accepted accounting principles ("GAAP") and, therefore, may not be comparable with the calculation of similar measures 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. "Adjusted EBITDA" (non-GAAP financial measure) is calculated as consolidated net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortization and adjusted for G&A impacts and certain non-cash, extraordinary and non-recurring items primarily relating to unrealized gains and losses on financial instruments and impairment losses, including derivative true-up settlements. PetroTal utilizes adjusted EBITDA as a measure of operational performance and cash flow generating capability. Adjusted EBITDA impacts the level and extent of funding for capital projects investments. Reference to "EBITDA" is calculated as net operating income less G&A. "Free funds flow" (non-GAAP financial measure) is calculated as net operating income less G&A less exploration and development capital expenditures less realized derivative gains/losses and is calculated prior to all debt service, taxes, lease payments, hedge costs, factoring, and lease payments. Management uses free funds flow to determine the amount of funds available to the Company for future capital allocation decisions. "Net Surplus/Debt" is calculated as total cash + all trade and VAT receivables + short and long term net derivative balances - total current liabilities - long term debt - non current lease liabilities - deferred tax - other long term obligations. Please refer to the MD&A for additional information relating to specified financial measures.

ELIGIBLE DIVIDEND: An eligible dividend is one which is characterized as such by the dividend-paying corporation for Canadian residents. The primary benefit of an eligible dividend is that it benefits from an enhanced gross-up and credit regime at the shareholder level (i.e., the shareholder pays less tax on eligible dividends than non-eligible dividends). This is meant to compensate for the higher general corporate tax rate paid by non-CCPC's on their income and generally preserve integration of Canada's tax rates. As an example, for federal income tax purposes the gross-up rate for eligible dividends is 38% (as compared to 15% for non-eligible dividends) such that the amount of the dividend is multiplied by 1.38 to determine the taxable income to the shareholder. The dividend tax credit for eligible dividends is additionally increased to 6/11 (or 15.02%), as compared to 9/13 (9%) for non-eligible dividends, to offset the greater income inclusion to the taxpayer. Each province provides similar relief on the tax they would otherwise levy on the dividends, although the effective gross-up and credit differs by province.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about NPV-10, future development and abandonment costs, prospective results of operations, production and production capacity, free funds flow, revenue, margins, net operating income, shareholder returns 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 and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in PetroTal's guidance. The Company's actual results may differ materially from these estimates.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/165656

by wpengine

wpengine

About

Corporate Info

Investors

US Corporate Office – Houston

Office – Calgary