2020 Archives - PetroTal Corp.

PetroTal Completes First Oil Export Sale through Brazilian Terminal

Initial shipment of 106,000 barrels of oil into Brazil for export to the Atlantic region

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 30, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") is pleased to announce the first export of Bretana oil into the Atlantic region through Brazil. This provides PetroTal with an additional option to monetize oil sales, beyond the Company's existing important sales arrangements with Petroperu using the Northern Oil Pipeline ("ONP"), and to the Iquitos refinery. This will facilitate future oil production growth when the Company continues development of the Bretana oil field, targeting to reach 20,000 barrels of oil per day in Q1 2022.

This initial shipment of 106,000 barrels was arranged between PetroTal and Novum Energy Trading, a British Virgin Islands registered Corporation ("Novum"), to establish the viability of Bretana oil exports using the Amazon river through Brazil. In early December 2020, a convoy of barges were loaded at Bretana and have now reached the terminal area near Manaus, Brazil for transfer into a tanker that will deliver the oil to the Atlantic region.

The sale was completed FOB at the Bretana field, where the oil was loaded onto the barges, with the invoice based on the February 2021 ICE Brent oil price forecast, net of transportation costs and export-related fees associated with the Brazilian - Atlantic coast route. The net proceeds of US$2.7 million have been received and are not subject to any further price adjustments when this oil is sold to the end user by Novum.

Based on the success of this initial export shipment, PetroTal and Novum have signed a letter of intent to establish long term sales through Brazil to complement the Company's existing sales arrangements with Petroperu's ONP and the Iquitos refinery. Future export cargos through Brazil are expected to be at least 200,000 barrels and, with the volume efficiencies expected, will result in a higher netback per barrel for PetroTal.

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

"We are pleased that all parties worked seamlessly together to manage the logistics associated with this pilot shipment. This represents a milestone achievement for PetroTal, since having the ability to manage oil sales to both the Pacific and Atlantic coasts provides for maximum flexibility and pricing. The ONP will continue to play an important role in the Company's ongoing growth."

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL) (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field.

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

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

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

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

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

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

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

READER ADVISORIES

FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements. Such statements relate to possible future events, including, but not limited to, the members of the board of directors of the Company and the termination of the Relationship Agreement. All statements other than statements of historical fact may be forward‐looking statements. Forward‐ looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward‐looking statements are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which the forward‐looking statements are based are reasonable, undue reliance should not be placed on the forward‐looking statements because the Company can give no assurance that they will prove to be correct. Since forward‐looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

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

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/71158

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PetroTal Recommences Oil Sales into the Pipeline

Peruvian government and Indigenous communities reach agreement ending pipeline disruption

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 29, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") is pleased to announce that social issues affecting the Northern Oil Pipeline ("ONP"), operated by Petroperu, have now been resolved. As a result, PetroTal has now recommenced oil deliveries at Saramuro (Pump Station #1), for sales into the ONP.

The social disruption had impacted the ONP's operations for 85 days and, as a result of continued dialogue between the indigenous communities and the Peruvian government, an agreement was reached that addresses the community's concerns. Petroperu and PetroTal offered support to all parties to help facilitate the settlement.

Petroperu has commenced pumping oil from Pump Station #1 to Pump Station #5, thereby allowing the awaiting barges to start unloading PetroTal's oil. Petroperu is inspecting a section of the pipeline beyond Pump Station #5 for possible repairs resulting from heavy rains and landslides in that area.

In the interim, PetroTal will continue to control output of oil production to manage sales availability through the ONP storage, Iquitos refinery and other options. Upon full commencement of the ONP operations, expected by mid-January 2021, the Company will again increase oil production to approximately 10,000 barrels of oil per day.

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

"We are pleased that the Peruvian government and indigenous communities have reached resolution on the social concerns, and that PetroTal will be able to again rely on continued availability of the ONP by Petroperu. The ONP serves an important role for all oil producers in the jungle area of Peru and having continuous, reliable operations is a necessity for continued production, development and expansion of Peru's oil resources."

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 contact:

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

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

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

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

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

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

READER ADVISORIES

FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements. Such statements relate to possible future events, including, but not limited to, the members of the board of directors of the Company and the termination of the Relationship Agreement. All statements other than statements of historical fact may be forward‐looking statements. Forward‐ looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward‐looking statements are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which the forward‐looking statements are based are reasonable, undue reliance should not be placed on the forward‐looking statements because the Company can give no assurance that they will prove to be correct. Since forward‐looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/71100

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PetroTal Announces Secondary Sale of Shares

Remus Horizons replaces Gran Tierra as PetroTal's largest shareholder

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 14, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") announces that it has been informed by Gran Tierra Resources Ltd. ("GTRL"), a control person of PetroTal, that GTRL has entered into a private agreement with Remus Horizons PCC Limited ("Remus") in respect of the purchase by Remus of 218,012,500 common shares ("PetroTal Shares") of PetroTal (the "Purchased Shares") at a price of GBP0.099385 per Purchased Share, for an aggregate purchase price of approximately GBP21,667,172 (the "Transaction"). Completion of the Transaction is expected to occur on or about December 18, 2020, subject to a number of conditions being satisfied or waived by one or both of GTRL and Remus. PetroTal is not a party to the agreement and will not receive any proceeds from the Transaction. GTRL has indicated it is disposing of the Purchased Shares for investment purposes.

The Purchased Shares represent approximately 26.7% of the issued and outstanding PetroTal Shares as of the date hereof and Remus will become a new control person of PetroTal following completion of the Transaction. GTRL, a wholly owned subsidiary of Gran Tierra Energy Inc., currently owns 246,100,000 PetroTal Shares, representing approximately 30.15% of the issued and outstanding PetroTal Shares as of the date hereof. Upon closing the Transaction, GTRL will own 28,087,500 PetroTal Shares, representing approximately 3.44% of the issued and outstanding PetroTal Shares as of the date hereof. The remaining 28,087,500 PetroTal Shares are subject to escrow pursuant to the TSX Venture Exchange escrow requirements imposed in connection with the Company's reverse take-over transaction completed in December 2017.

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

"We are very appreciative of the guidance and support provided by Gran Tierra and certainly wish them success in their continued corporate growth. The Peruvian assets and start-up funding provided by Gran Tierra when PetroTal was created in late 2017, formed the nucleus for PetroTal's growth.

"Additionally, we are excited to welcome Remus as PetroTal's largest shareholder. The long term investment focus, along with sound business and social principles of the fund, will provide solid backing for PetroTal. All stakeholders in the Company will benefit from knowing our shareholder base is strong and committed to PetroTal's ongoing growth."

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented:

"As part of our ongoing commitment to a disciplined financial strategy, with a focus on balance sheet protection and long-term value preservation, we decided to sell the majority of our PetroTal Shares.

"Manolo Zuniga and the entire team at PetroTal have done an excellent job developing the Bretana oil field in Peru and navigating through these very challenging and volatile times in the industry. With a strong board and executive management team in place, PetroTal is positioned to add value for many years to come."

Sath Kanagarajah, Chief Executive Officer of Remus Corporation commented:

"We are delighted to achieve this significant strategic milestone for Remus and our investors. Our deeply experienced management team looks forward to working with PetroTal and the Peruvian national authorities to support further development of PetroTal, in full cooperation with all their stakeholders. We are especially keen to foster local employment opportunities and partnerships with the communities in which PetroTal operates."

About Remus

Remus is a privately owned and managed investor in energy assets and companies, with a long-term investment horizon and a dedication to unlocking the full potential of energy opportunities. Remus actively seeks economic and social value creation for all stakeholders, including local employees, their families and communities. Its management and advisors bring many decades of investment and operational expertise to project scouting, development and management.

Remus is incorporated under Guernsey law, and is managed by Remus Horizons Management Company Limited, a licensee of The Guernsey Financial Services Commission. For further information about Remus, please visit https://remus-petroleum.com.

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 contact:

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

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

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

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

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

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

READER ADVISORIES

FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements. Such statements relate to possible future events, including, but not limited to, the completion of the Transaction. All statements other than statements of historical fact may be forward‐looking statements. Forward‐ looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward‐looking statements are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which the forward‐looking statements are based are reasonable, undue reliance should not be placed on the forward‐looking statements because the Company can give no assurance that they will prove to be correct. Since forward‐looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/70162

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PetroTal Announces Third Quarter 2020 Financial and Operating Results

Following social unrest, production has been restricted to 5,000 bopd to manage oil inventory

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - November 19, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2020 ("Q3 2020").

Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements ("Financial Statements") and management's discussion and analysis ("MD&A") for Q3 2020, which are available on SEDAR at www.sedar.com and the Company's website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars ("US$") unless otherwise stated.

Q3 2020 HIGHLIGHTS

RESULTS AT A GLANCE

	Nine Months Ended			Three Months Ended
	September 30			September 30 2020	June 30 2020	March 31 2020
	2020		2019	September 30 2020	June 30 2020	March 31 2020
Financial
Crude oil revenues	$59,218	$32,307		$7,611	$9,839	$41,768
Royalties	(2,177)	(1,581)		(248)	(123)	(1,806)
Net operating income	22,889	13,364		2,324	2,756	17,809
Commodity price derivatives income (loss) (1)	(17,757)	580		4,399	18,264	(40,420)
Net income (loss)	(12,199)	1,925		3,224	16,029	(31,452)
Basic and diluted net income (loss) (US$/share)	(0.02)	0.00		0.00	0.02	(0.05)
Capital expenditures	35,982	62,490		3,354	8,756	23,872
Operating
Average production (bopd) (2)(3)	5,428	2,905		2,444	4,185	9,686
Average sales (bopd)	5,777	2,188		2,327	4,729	10,313
Average Brent oil price (US$/barrel)	42.69	64.67		44.32	29.19	50.14
Average realized price (US$/barrel)	37.41	54.09		35.56	22.87	44.51
Netback (US$/barrel)	14.46	22.38		10.86	6.40	18.98
Funds flow provided by (used in) operations	15,375	8,198		(548)	862	15,061
Balance sheet
Cash				9,788	20,379	7,373
Working Capital				(30,407)	(31,845)	(61,025)
Total assets				205,531	216,899	194,274
Current liabilities				62,355	76,932	89,914
Equity				126,253	122,789	90,029

(1) Contingent liability will be paid over a three-year period.
(2) The field was shut in on May 7, 2020; for the 37 producing days in Q2 2020, production averaged 11,500 bopd.
(3) The field was shut in from July 1 to July 14 and from August 9 to September 27; for the 28 producing days in Q3 2020 constrained production averaged 8,000 bopd.

Q3 2020 Operational Highlights

On July 15, 2020, PetroTal recommenced oil field operations after the COVID-19 government-imposed shut down on May 7, 2020, and production returned to 11,500 bopd shortly thereafter;
As a preemptive measure, the Bretana oil field was shut down on August 9, 2020 due to social unrest against the government outside the field camp that resulted in a violent confrontation between protestors (intending to occupy the Bretana facilities) and the police. The social unrest was conducted by protestors seeking government assistance against the COVID-19 crisis; and,
As a result of the indigenous communities and government bodies reaching an agreement that will see increased funding for the local communities, on September 28, 2020, PetroTal recommenced oil field operations, and production again was restored to the pre-shut down level of 11,500 bopd.

Q3 2020 Financial Highlights

Revenue decreased to $7.6 million ($35.56/bbl) compared to $9.8 million ($22.87/bbl) in Q2 2020, due to lower oil production as a result of social unrest in Q3 2020. However, this was in part, offset by higher oil prices, with the average Brent oil price increasing to $44.32/bbl from $29.19/bbl for Q2 2020;
Royalties to the Peruvian government were $0.2 million (3.2% of revenue) compared to $0.1 million (1.3% of revenue) for Q2 2020;
Operating costs were $2.5 million ($11.64/bbl) compared to $2.4 million ($5.67/bbl) for Q2 2020, reflecting consistent quarterly costs not directly impacted by lower production;
Transportation costs were $2.5 million ($11.90/bbl) compared to $4.5 million ($10.50/bbl) for Q2 2020, reflecting the variable cost nature associated with lower production;
Cash flow used by operations was $0.5 million compared to $0.9 million generated by operations in Q2 2020;
Net operating income was $2.3 million ($10.86/bbl) compared to net operating income of $2.8 million ($6.40/bbl) in Q2 2020;
The Company had cash of $9.8 million at the end of Q3 2020 compared to $20.4 million at the end of Q2 2020. The majority of the cash reduction is attributed to a $9.4 million reduction in accounts payable during Q3 2020;
The Company's contingent derivative liability relating to oil sold to Petroperu was reduced to $17.0 million at September 30, 2020 from $22.3 million at June 30, 2020, as a result of higher oil prices in Q3 2020. This contingent liability relates to the timing difference between when Petroperu provides an initial payment for the oil and when the final settlement price is calculated. The amount of the ultimate liability will be crystallized when the oil is actually sold by Petroperu, which is expected to commence in December 2020 and continue into 2021; and,
The contingent liability pertaining to the Brent oil price reduction has been structured into a three-year payment arrangement ("Arrangement") with Petroperu (the "Parties"):
- The amount of this contingent liability to Petroperu will be definitively determined when the security arrangements for PetroTal's obligations are finalized;
- The Arrangement allows PetroTal to settle the obligations to Petroperu now while still allowing the Company to benefit from higher oil prices forecasted by the Brent forward strip pricing curve, when the physical oil sales occur;
- The Parties have agreed to extend the one-year Oil Sales Contract to three years upon expiry of the current term in December 2020;
- The Parties established a framework to ensure that future oil sales under the Oil Sales Contract have adequate hedge protection to avoid future downside losses; and,
- The Parties have agreed to further amendments to the Oil Sales Contract for lower pipeline tariffs and fees during periods of low oil prices.

Events subsequent to September 30, 2020

After PetroTal recommenced oil field operations on September 28, 2020, the wells were quickly brought into full operation at the pre shut-down level of 11,500 bopd. The indigenous communities and government bodies have reached an agreement that will see increased funding for the local communities. Oil deliveries have commenced to the Iquitos refinery and, on a limited basis, to the Northern Oil Pipeline ("ONP") until social issues affecting the ONP are fully resolved. In order to manage oil inventory levels, production is currently intentionally constrained to 5,000 bopd, until such time as the ONP is operational. The Company's stringent COVID-19 protocols continue to ensure that the camp remains safe;
In October 2020, the Company sold 192,000 barrels of oil to the Iquitos refinery and the ONP at pump station #1, thereby generating revenues of $5.5 million (net of transportation and fees), which has been paid to the Company;
Discussions with Petroperu are continuing with respect to finalizing the contingent liability Arrangement, and the agreement is expected to be completed in the coming weeks;
The Company continues to diligently pursue a robust credit facility that will enhance liquidity and enable the Company to continue investment in the Bretana oil field for development growth; and,
PetroTal has been assessing other oil export options and has signed a contract with an international oil trader for a pilot shipment to export 120,000 barrels into the Atlantic region using the Amazon river through Brazil. The shipment will be sold FOB Bretana, priced at the forward month Brent ICE price, and paid within two weeks of loading at Bretana. There are no subsequent oil price adjustments.

Liquidity Update

At November 19, 2020, PetroTal has cash resources of $9.8 million, with accounts payable and accrued liabilities of approximately $39.3 million, a reduction of $1 million from September 30, 2020. Ongoing payments will be managed from expected oil field revenues and internal cash resources. Pursuant to contractual terms with our suppliers, approximately 46% of the amount are not due until into 2021.

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

"Whilst the last few months have been challenging, from both a COVID-19 and a social unrest perspective, we believe we have now turned the corner. Although we continue to restrict current production to 5,000 bopd, in order to manage our inventory levels, we are confident that we can increase production back to 11,500 bopd once the ONP reopens.

"We are pleased that the indigenous communities and government bodies have reached an agreement that will see increased funding for the local communities, and we look forward to continuing our strong working relationship with national, regional & local governments and the communities nearby Bretana as well as their indigenous leaders.

"We are pleased to sign an agreement with an international oil trader for the pilot export sale of 120,000 barrels of oil into the Atlantic region, diversifying our oil export options. We also aim to secure a credit facility in due course, which has the potential to enhance the Company's liquidity, so we can continue investment in the Bretana oil field for development growth. In closing, I would like to thank all our stakeholders for their continued support, during what has been a challenging period for the Company. We remain upbeat about the potential of the Bretana field and are firmly focused on delivering value for all those involved in the Company."

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL) and (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field.

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

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

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

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

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

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

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

READER ADVISORIES

FORWARD‐LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward‐looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; increased oil production volumes due to the reopening of the Bretana oil field, intentional production constraints to manage oil inventory and plans to return to full of production at such time as ONP is operational; the Arrangement with Petroperu, including the intention to enter into a final agreement in respect of contingent liabilities; the Company's ability to secure a credit facility; export alternatives; future development and growth prospects; and the ongoing effects of Covid-19 and social unrest and violence in Peru on the Company and its employees. All statements other than statements of historical fact may be forward‐looking statements. Forward‐ looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward‐looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, the availability and performance of drilling rigs, facilities, pipelines, inventory and barge storage capacity, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company's growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward‐looking statements are based are reasonable, undue reliance should not be placed on the forward‐looking statements because the Company can give no assurance that they will prove to be correct. Since forward‐looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e. g. , operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru (including recent social unrest and violence), access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may continue to have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2019 and management's discussion and analysis for the three and nine months ended September 30, 2020 which are available on SEDAR at www.sedar.com. The forward‐looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

FOFI DISCLOSURE: This press release contains future‐oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production, revenue, cash resources, liquidity, a future credit facility and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was approved by management as of the date of this press release and was included for the purpose of providing further information about PetroTal's anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/68620

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PetroTal Issues Equity Vested Through PSU Plan

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - October 9, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") announces that the Company has issued an aggregate of 1,611,678 Common Shares to employees (not designated as officers or directors ("Insiders") or persons discharging managerial responsibilities ("PDMR's") pursuant to the obligation to annually issue vested performance share units ("PSUs") to acquire Common Shares under the Company's performance and restricted share unit plan, as approved by the TSX Venture Exchange on December 12, 2019.

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

Admission to Trading on AIM/TSXV and Total Voting Rights

Application will be made to the London Stock Exchange for the admission of 1,611,678 Common Shares to trading on AIM ("Admission") and to the TSXV for listing of 1,611,678 Common Shares for trading on the facilities of the TSXV. It is expected that Admission will become effective at 8.00 a.m. on October 16, 2020.

Following Admission, the Company will have 816,167,379 Common Shares issued and there are no shares held in treasury. For purposes of the Disclosure Guidance and Transparency Rules, the total number of voting rights in the Company is calculated as the number of outstanding Common Shares, less the Common Shares not able to be voted due to restrictions applicable to certain holders which results in a total voting rights figure of 814,917,593 Common Shares. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL) and (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru with more than 10,000 bopd of production. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oilfield.

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

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

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

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

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

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

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

READER ADVISORIES

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65554

by wpengine

PetroTal Recommences Oil Production at the Bretana Field

The Peruvian government and communities agree to funding plan

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - September 30, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") is pleased to announce the recommencement of oil production and operations at the Bretana oil field. The recommencement of oil production follows agreements between the indigenous communities in the northeastern region of Peru (inclusive of Loreto, where Bretana is located), Regional governments and the Central Government of Peru, that will see enhanced funding available for these regions to aid community projects.

Highlights

PetroTal recommenced operations at the Bretana oil field on September 28, 2020, and as all seven wells continue to be gradually brought into full operation, current production is approximately 11,000 barrels of oil per day ("bopd"), approaching the pre shut down level of 11,500 bopd;
The indigenous communities and government bodies have reached an agreement that will see increased funding for the local communities;
Oil deliveries will commence to the Iquitos refinery immediately, and the Northern Oil Pipeline ("ONP") at the Saramuro Pump Station will be ready to receive deliveries of Bretana oil when the barges arrive; and,
The Company's stringent Covid-19 protocols continue to ensure that the camp remains safe and operates with minimal downtime.

Resolution between Communities and Governments

The Central Government has made three important announcements tackling the social unrest, which was exacerbated by the Covid-19 crisis. These measures will provide a long-term solution to these issues.

The first was Supreme Decree Nº 145-2020-PCM1 signed by the President (published August 28, 2020) establishing an investment plan to bridge the income gap among the poor indigenous communities, known in Spanish as the Plan de Cierres de Brechas ("PCB"). PetroTal strongly supports this initiative, which provides a six-year financial commitment of approximately US $1.7 billion2 to support development of the communities, of which US $28 million will be designated for economic development of the local communities over the next four months.

The second announcement was Ministerial Resolution Nº 268-2020-PCM3 signed by the Prime Minister (published September 20, 2020) establishing a working group called "The Management Committee for monitoring interventions and outcomes for the development of the native communities and localities of the provinces under the sphere of hydrocarbon activities in the provinces of Maynas, Loreto, Datem del Maranon, Requena and Alto Amazonas, of the department of Loreto", that will decide the projects under the PCB and who would manage them.

The third announcement was a Decree of Urgency Nº 114-20204 signed by the President (published September 23, 2020) allocating approximately US $250 million5 to a list of infrastructure projects throughout the country, with US $20 million5 allocated to the Loreto Region where Bretana is located. This decree expedites the procurement process to ensure all the allocated funds are properly deployed to maximize employment throughout all the communities.

1) https://cdn.www.gob.pe/uploads/document/file/1268888/DS%20N%C2%B0%20145-2020-PCM.pdf
2) Related news article found at https://andina.pe/agencia/noticia-gobierno-destinara-6-mil-millones-soles-para-cerrar-brechas-la-amazonia-811705.aspx
3) https://cdn.www.gob.pe/uploads/document/file/1308319/RM%20N%C2%B0268-2020-PCM.pdf
4) https://cdn.www.gob.pe/uploads/document/file/1317730/DECRETO%20DE%20URGENCIA%20N°%20114-2020.pdf
5) https://cdn.www.gob.pe/uploads/document/file/1317749/ANEXOS%20DU%20N%C2%B0114-2020.pdf

PetroTal acknowledges the efforts made by the indigenous communities and all levels of the Peruvian government to resolve the recent social disruption and to ensure a long-term solution is in place to minimize future disruptions. Going forward, PetroTal will continue its dedication to community support, along with focusing on sound environmental and corporate governance policies as well as maintaining stringent Covid-19 protocols to ensure that the camp remains safe and is operated with minimal downtime.

Bretana Oil Field Recommencement

With the full support from the local indigenous communities and governments, PetroTal has recommenced operations at the Bretana oil field. All seven wells have now commenced operation and are being gradually optimized for effective reservoir management. Production is currently at approximately 11,000 bopd, and expected to reach the pre shut down level of 11,500 bopd, shortly.

While production was shut in at Bretana, Petroperu used that time to carry out some maintenance work on the pipeline, which is expected to be completed on time without affecting Bretana's oil deliveries. Similarly, with the social unrest at Bretana that originated at the pipeline now resolved, the Government expects to have the pipeline social issues also resolved in time for the pipeline to receive Bretana's oil production. In the meantime, the Iquitos refinery operated continuously throughout the recent social unrest, thereby allowing PetroTal to deliver oil from inventory over the last month.

Liquidity Update

At September 29, 2020, PetroTal had cash resources of US $12 million, with accounts payable and accrued liabilities of approximately US $36 million, a reduction of US $14 million from the end of Q2 2020. Ongoing payments will be managed from expected oil field revenues and internal cash resources. Pursuant to contractual terms with our suppliers, approximately 30% of the amount is not due until into 2021.

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

"PetroTal commends the efforts of all parties in reaching a negotiated settlement that will ultimately benefit the indigenous communities, the Peruvian government, and all operating companies, including PetroTal. On behalf of PetroTal, I would like to sincerely thank the PetroTal team for their continued dedication during this period and for their contribution towards this long-term community funding solution. Our corporate commitment is to ensure all stakeholders benefit from the Bretana project, including the local communities that support our Company."

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru with more than 10,000 bopd of production. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field.

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

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

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

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

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

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

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

READER ADVISORIES

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/64920

by wpengine

PetroTal Announces Voting Results of Shareholders' Meeting

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - September 10, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") announces that all resolutions were duly passed by Shareholders at the Company's Annual General and Special Meeting held on September 9, 2020.

Resolution 9 related to authorizing the Board of Directors, at its discretion, to proceed with a potential consolidation of the Common Shares on the basis of a ratio of between four and eight pre-consolidation Common Shares for each one post-consolidation Common Share (the "Consolidation"). The Consolidation is subject to approval of the TSX Venture Exchange (the "TSXV"), which if received and the Board of Directors determines to proceed, the Consolidation will occur at a time determined by the Board and announced by a press release of the Company. The Company believes that the Consolidation, if implemented, will promote increased liquidity and reduced volatility in the trading of the Shares.

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL) (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018, and in early 2020 became the second largest crude oil producer in Peru with more than 10,000 bopd of production. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field.

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

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

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

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

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

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

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

READER ADVISORIES

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/63521

by wpengine

PetroTal Provides Update on the Bretana Oil Field

Peruvian government announces Supreme Decree to increase funding to communities

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - September 9, 2020) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) ("PetroTal" or the "Company") expects and is ready to reopen the Bretana oil field as soon as the ongoing discussions between the communities and the Government of Peru have been ratified, which is expected in the next few days as reported by Government officials. PetroTal commends the efforts of all parties to reach a negotiated settlement that will ultimately benefit the communities, the Peruvian government, and all operating companies, including PetroTal.

On August 28, 2020, the Government of Peru announced a Supreme Decree ("Decree") approving the financial Gap Closure Plan within a number of provinces in northeast Peru, including Loreto, the area where PetroTal operates the Bretana oil field. PetroTal welcomes the announcement that the Decree provides for a six year financial commitment of approximately US$1.7 billion (6 billion soles) to the communities, of which US$46 million (162 million soles) will be designated for economic development of the localities over the next four months, by the Peruvian government. The Decree specifically addresses the local community participation criteria and takes steps to ensure that the funding process is properly monitored to ensure maximum benefit to the communities. The published Decree can be found at https://www.gob.pe/institucion/pcm/normas-legales/1124063-145-2020-pcm.

Since the announcement of the Decree, which PetroTal strongly supports, government and municipality representatives have been consulting with the community representatives on the Decree. After meeting with the Bretana community in the coming days, it is expected that PetroTal will restart oil production shortly thereafter.

In order to fully support the collective efforts of the communities and the government to reach an acceptable funding solution, PetroTal remains awaiting government agreements. PetroTal acknowledges the efforts at all levels of the Peruvian government to resolve the recent social disruption and to ensure a long term solution is in place to minimize future disruptions. Equally, the Company acknowledges the support received from the Bretana community.

Further updates on the reopening of the Bretana field and export of oil into the pipeline will be provided as and when appropriate.