2022 Archives - PetroTal Corp.

PetroTal Announces Initial Production for Well 12H and Other Corporate Updates

Naturally flowing production of 3,650 bopd (off pump); Social Trust Addendum approved; Production restored to 20,000 bopd

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 28, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the successful testing results of well 12H, the Company's fourteenth producing well at the Bretana oil field.

Well 12H highlights

Well 12H has tested naturally, off pump, at approximately 2,900 barrels of oil per day ("bopd") over its first 10 days of production since December 16, 2022;
Current production of well 12H, under natural flow, has increased to approximately 3,650 bopd as at December 27, 2022, indicating the well continues to clean out completion fluid;
With the field currently producing at approximately 20,000 bopd limited by export capacity, the technical team has delayed starting the already installed electro-submersible pump ("ESP") on well 12H to gather data under natural flow conditions and to prevent production constraints on other wells;
Once the ESP is activated, the 12H well is expected to produce similarly to the neighboring 13H well, which averaged 6,451 bopd during its first 30 days online, and has averaged approximately 4,000 bopd during the past 10 days;
The 12H well confirms the possibility of drilling another line of wells south of the 12H and 13H wells; and,
The total cost of the 12H well is estimated at $15.2 million, slightly higher than budget due to directional drilling tool complications.

Social Trust Addendum Update

PetroTal is pleased to announce that on December 20, 2022, it received board approval to incorporate the 2.5% social trust addendum into the Block 95 License Contract. Perupetro's board have also approved the social trust addendum on December 22, 2022. Now the proposed addendum will go through the process of receiving approval from the Ministry of Energy & Mines and the Economy and Finance Ministry before Peru's President can sign the Supreme Decree authorising Perupetro to amend the Block 95 License Contract. This is expected to be completed by the end of the second quarter 2023. PetroTal will continue to set aside funds in a separate bank account as per the agreed social trust addenda.

Current Production Now At 20,000 bopd

The Company has averaged approximately 20,000 bopd since December 16, 2022, with an estimated production capacity of over 24,000 bopd. With export capacity now reestablished, most of the Brazilian barges are now arriving in Bretana, allowing the Company to increase production. Once filled, they will travel to Manaus, Brazil to unload. It is possible that this travel schedule may create export constraints for the Company early in 2023 while the barging fleet returns to optimal route travel times.

2023 Guidance Release

PetroTal expects to release its 2023 production and capital budget in mid January, 2023, and will present at the Pareto Securities 18^th Annual E&P Independents Conference in London on January 18, 2023.

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

"We are finishing 2022 with 20,000 bopd of production and 24,000 bopd of production capacity, including 12H rates flowing naturally with the ESP yet to be activated. With the Social Trust Fund in its final setup stage, the PetroTal team will focus on enhancing our export capabilities to produce at full capacity."

ABOUT PETROTAL

PetroTal is a publicly traded, tri quoted (TSXV: 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 2020, 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
Tel: +44 (0) 20 7710 7600

Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449

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 inNI 51-101. All references to Brent indicate Intercontinental Exchange ("ICE") Brent.

FORWARD-LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; drilling, completions, workovers and other activities and the anticipated costs and results of such activities; PetroTal's revised 2022 guidance and budget including, but not limited to, estimated or anticipated production levels, capital expenditures and drilling plans; the intention to redeem the outstanding bonds; PetroTal plans to deliver strong operational performance and to generate free cash flow and growth; capital requirements and the Company's ability to access capital on desirable terms and within required timelines; the ability of the Company to achieve drilling success consistent with management's expectations; the ability of the Company to achieve near term production targets and operate at unrestricted levels; anticipated future production and revenue; drilling plans including the timing of drilling, commissioning, and startup and the impact of delays thereon; oil production levels, including average and exit production in 2022; sales expansion through alternative exports routes, including barging and trucking; the Company's proposals for collaboration with local communities; and future development and growth prospects. 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, 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, 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, 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, wars (including Russia's war in Ukraine), 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. The ongoing war between Russia and Ukraine has the potential to threaten the supply of oil and gas from the region. The long-term impacts of the war between these nations remains uncertain. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, increased operating and capital costs due to inflationary pressures, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Corporation's annual information form (filed April 28, 2022) and MD&A (filed August 25, 2022) (the "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.

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/149614

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PetroTal Announces Warrant Exercises, PSU Share Issuance and Total Voting Rights

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 20, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) and (OTCQX: PTALF) ("PetroTal" or the "Company") announces the exercise of Performance Warrants and issuance of Common Shares to employees pursuant to annually vested performance share unit plan ("PSU").

Exercise of Performance Warrants

PetroTal received notices to exercise 389,384 (net basis) Performance Warrants at a price of US$0.1869 per Common Share. Following the warrant exercises, the Company will have no further Performance Warrants outstanding.

PSU Issue

PetroTal also announces that it has issued an aggregate of 2,177,039 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. No Common Shares were issued to Directors or Officers of the Company.

Further details regarding the Company's PSU plan are set out in the management information circular of the Company dated August 3, 2022, which is available on SEDAR at www.sedar.com.

Application will be made for a total admission of 2,566,423 Common Shares to trading on AIM ("Admission"), which will rank pari passu with existing Common Shares, expected to occur on or around December 22, 2022.

Following Admission, PetroTal will have 862,208,996 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.

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSXV: 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 2020, Petrotal became the second 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
Tel: +44 (0) 20 7710 7600

Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449

READER ADVISORIES

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/148777

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PetroTal Issues Corporate Update Regarding River Access

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 15, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the following corporate update.

River Transportation Reopened

On December 14, 2022, the Asociacion Indigena de Desarrollo y Conservacion de Bajo Puinahua ("AIDECOBAP") removed the river blockade to allow oil barge transportation access in and out of the Company's operating area coinciding with positive working table discussions held on December 14, 2022 where the Junta of Authorities of Puinahua, Perupetro, and PetroTal also participated.

Production Ramp Up To Commence Immediately

With the reopening of river access, the Brazilian export route is now available. Production ramp up will commence immediately over the next few days and is expected to again reach approximately 18,000 barrels of oil per day ("bopd") for the remainder of December 2022. Inclusive of social downtime since late November, the Company estimates Q4 2022 oil production levels to average between 8,500 and 9,500 bopd.

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

"We are pleased the Puinahua Channel has reopened and believe the forthcoming addendum incorporating the 2.5% Social Trust Fund to the Block 95 License Contract will provide long term stability and a material quality of life enhancement to the communities of the Puinahua District."

ABOUT PETROTAL
PetroTal is a publicly traded, tri quoted (TSXV: 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 2020, 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
Tel: +44 (0) 20 7710 7600

Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449

READER ADVISORIES

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 cash flow" (non-GAAP financial measure) is calculated as net operating income less G&A less exploration and development capital expenditures and is calculated prior to all debt service, taxes, lease payments, hedge costs, factoring, and lease payments. Management uses free cash 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.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's revised budget and guidance, prospective results of operations, production and production capacity, free cash flow, revenue, adjusted EBITDA, debt repayment, liquidity, 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 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/148116

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PetroTal Issues Various Corporate Updates

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - December 9, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) and (OTCQX: PTALF) ("PetroTal" or the "Company") announces the following corporate updates.

Peruvian political changes

On December 7, 2022, the Peruvian Congress voted to remove Mr. Pedro Castillo as President of Peru. Pursuant to Peruvian constitutional law, the Vice-President, Ms. Dina Boluarte assumes the Presidency. Following this change, there will be a reassessment of all government Ministers before a new cabinet is named. This process is expected to occur smoothly and should not impact PetroTal's operations.

Petroperu Agreement Finalized

PetroTal and Petroperu have finalized an agreement outlining the repayment terms of the $64 million in true up revenue owed to the Company by Petroperu from the Company's July 2022 export of approximately 720,000 barrels of oil to an international refiner. On December 1, 2022, the Company received $10.9 million from Petroperu as part of a schedule of payments, which is expected to be fully repaid by August 1, 2023.

Production Impact from River Blockade

Since the Company's Q3 2022 financial and operating results were released on November 17, 2022, the Company has been producing nearly 14,000 barrels of oil per day ("bopd"), reaching 18,000 bopd recently. As a result of the river blockade, PetroTal has reduced production to between 4,500 bopd and 5,000 bopd since November 30, 2022, to manage storage levels and will need to further reduce production levels should the blockade persist as the Northern Peruvian Pipeline ("ONP") remains unavailable due to ongoing repairs.

AIDECOBAP River Blockade

On November 25, 2022, Asociacion Indigena de Desarrollo y Conservacion de Bajo Puinahua ("AIDECOBAP") followers detained a barge traveling to Brazil with crude oil purchased from PetroTal. The crew was taken hostage in an effort to force the Company to sign an addendum related to the social trust prior to formal working table approval. Approximately 48 hours later, the crew of the barge was released, however, territorial control of the river pathway continues, limiting further barge movements to and from the Company's oilfield.

PetroTal strongly condemns the taking of hostages and using force and violence as a negotiating tactic and calls on Peruvian government intervention to prevent further unnecessary escalation. The Company recommends that the terms in the draft addendum, already agreed with Perupetro, be duly agreed upon with the entire working table to ensure a repeatable social trust model in other oil producing districts in the region of Loreto where Block 95 is located. Since January 1, 2022, PetroTal has been contributing 2.5% of the value of its fiscalized oil production, when operating without social disruption, to a dedicated bank account which has now grown to nearly $7 million. This blockade is not only impacting the trust fund, but also our social programs, thereby upsetting the local communities that understand this is an unnecessary protest without any logic.

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

"We are committed to ensuring that the proposed 2.5% Trust Fund is properly implemented so it may provide critical long-term funding to all the Puinahua District communities. We are also pleased to conclude our true up payment agreement with Petroperu and will continue to communicate with them in good faith regarding the additional factoring amounts owed for Q1 2022 oil deliveries into the ONP and the reopening of the pipeline when appropriate repairs are concluded."

ABOUT PETROTAL

PetroTal is a publicly traded, tri quoted (TSXV: 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 2020, 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
Tel: +44 (0) 20 7710 7600

Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449

READER ADVISORIES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/147388

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PetroTal Announces Exercise of Performance Warrants and Total Voting Rights

Calgary, AB and Houston, TX – November 28, 2022 - PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL, AIM: PTAL and OTCQX: PTALF) announces that it received a notice to exercise 230,000 and 88,580 (net basis) Performance Warrants at a price of US$0.1869 per Common Share.

Following this warrant exercise, the Company will have 599,690 Performance Warrants outstanding. Application will be made for admission of the 318,580 common shares, which will rank pari passu with existing Common Shares, to trading on AIM ("Admission"), which is expected to occur on or around November 30, 2022.

Following Admission, the Company will have 859,642,573 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.

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSXV: 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 2020, Petrotal became the second 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
Tel: +44 (0) 20 7710 7600

Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449

READER ADVISORIES

by Erin Vito

PetroTal Announces Q3 2022 Financial and Operating Results

Strong balance sheet position

$150 million of free cash flow delivered in nine months of 2022

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - November 17, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2022 ("Q3 2022").

Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements ("Financial Statements"), and management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2022, 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 ("USD") unless otherwise stated.

Q3 2022 Highlights

Production in the quarter averaged 12,229 barrels of oil per day ("bopd") with sales of 12,186 bopd (1.1 million barrels), despite being constrained as low river levels reduced barge capacity;

Generated net operating income⁽¹⁾ ("NOI") of approximately $62.3 million, EBITDA⁽¹⁾ of $57.6 million, and free cash flow⁽¹⁾ before all debt service of $37.0 million equating to a 44% free cash flow margin⁽²⁾;

Capital investment totaled $20.6 million, primarily to drill well 13H and key infrastructure projects;

Petroperu exported approximately 720,000 barrels of oil to an international refiner, crystalizing for PetroTal over $64 million (including VAT) of true up revenue and reducing the amount of PetroTal's oil in the Northern Peruvian Pipeline ("ONP") to 2.4 million barrels;

Demonstrated continued balance sheet strength with cash of $93 million at September 30, 2022, a net surplus⁽²⁾ balance of $75.5 million. The Company remains in full compliance with all bond covenants as at September 30, 2022; and,

On September 15, 2022, PetroTal welcomed two new Directors, Messrs. Luis Carranza and Jon Harris, and announced the retirement of Messrs. Gary Guidry and Ryan Ellson.

(1) Free cash flow defined as EBITDA less capital expenditures. Free cash flow margin defined as free cash flow divided by crude oil revenues. See "Selected Financial Measures"
(2) Net debt / surplus defined as (total cash + total trade and VAT receivables + total derivative assets) - (trade and VAT payables + total bond debt + total derivative obligations + total lease obligations)

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

"Having produced over 10.5 million barrels of oil since inception, we are on track to deliver average production growth of approximately 40% and almost $200 million in free cash flow in 2022. Although the Company encountered external transportation challenges, we expect to deliver double digit yearly production growth with potentially 40% plus free cash flow yields under current Brent oil forward strip pricing conditions. The high margin nature of our business should be at the forefront of investors' sentiment, alongside our proven ability to execute technically."

Selected Financial and Operational Highlights

	Three Months Ended		Nine Months Ended
(in thousands USD)	Sept 30, 2022	Sept 30, 2021	Sept 30, 2022	Sept 30, 2021
Financial
Crude oil revenues	84,164	44,781	295,350	119,946
Royalties ⁽³⁾	(11,689)	(2,604)	(26,166)	(6,658)
Net operating income ⁽¹⁾	62,333	29,587	225,114	79,234
Commodity price derivative (gain)/loss	32,686	(293)	5,139	(18,658)
Net income	2,594	14,970	151,351	57,129
Diluted net income (US$/share)	0.00	0.02	0.18	0.07
Capital expenditures	20,625	26,114	62,178	55,590
Operating
Average production (bopd)	12,229	9,508	12,816	8,567
Average sales (bopd)	12,186	9,142	14,095	8,856
Average Brent price ($/bbl)	97.89	73.21	102.39	67.76
Contracted sales price, gross ($/bbl)	97.21	71.06	98.78	65.67
Netback ($/bbl)⁽²⁾	55.60	35.18	58.50	32.77
Funds flow provided by operations	46,205	18,648	112,636	42,742
Balance sheet
Cash and restricted cash			93,018	57,655
Working capital			136,338	56,455
Total assets			549,838	373,261
Current liabilities			110,160	69,785
Equity			361,367	195,572
1. Net operating income ("NOI") and Netback represent revenues less royalties, operating expenses, and direct transportation. 2. Netback per barrel ("bbl") and funds flow provided by operations do not have standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures for other entities. See "Selected Financial Measures" section. 3. Royalties in Q3 2022 include the value since January 1, 2022 inception for the 2.5% social trust initiative.

Q3 2022 Financial Highlights

Strong revenue profile. Oil revenue in Q3 2022 was $84.2 million ($75.07/bbl) compared to Q2 2022 of $118.4 million ($89.04/bbl) and Q3 2021 of $44.8 million ($53.24/bbl).

High margin operational cash flow. Generated NOI and EBITDA of $62.3 million ($55.60/bbl) and $57.6 million ($51.42/bbl), respectively, compared to $98.6 million ($74.12/bbl) and $93.4 million ($70.26/bbl), respectively, in Q2 2022 and $29.6 million ($35.18/bbl) and $26.1 million ($31.07/bbl), respectively, in Q3 2021.

Efficient capital deployment. Capital expenditures in the quarter totalled $20.6 million and were focused on drilling and completing well 13H. During the nine months ended September 30, 2022, the Company invested a total of $62.2 million, demonstrating capital flexibility under sales constraint conditions.

Robust free cash flow. Generated free cash flow before changes in non-cash working capital and debt service of $37.0 million ($33.03/bbl) in the quarter. Total free cash flow before changes in non-cash working capital and debt service for the nine months ended September 30, 2022 is nearly $150 million significantly strengthening the Company's net surplus position by nearly $130 million.

Total operating costs under $10/bbl. The Company had lower gross total operating cost expense in the quarter of $10.1 million ($9.06/bbl) from $11.7 million ($8.82/bbl) in Q2 2022. Total quarterly lifting costs were $7.4 million ($6.62/bbl), a decrease from Q2 2022 of $8.4 million ($6.28/bbl) and an increase from Q3 2021 of $5.4 million ($6.47/bbl). Total transportation costs were $2.7 million ($2.44/bbl) a slight decrease from $3.4 million ($2.54/bbl) in Q2 2022 and a substantial decrease from $7.1 million ($8.50/bbl) in Q3 2021.

G&A on budget. Q3 2022 G&A was $4.7 million ($4.18/bbl) compared to $5.1 million ($3.87/bbl) in Q2 2022 and $3.4 million ($4.11/bbl) in Q3 2021.

Net income/loss. PetroTal posted net income of $2.6 million, a decrease from Q2 2022 net income of approximately $84 million, primarily from lower sales in the quarter, a non cash commodity price derivative loss of approximately $33 million, and royalty provision for the social trust.

Balance sheet in a cash surplus position. Net surplus was approximately $75.5 million as at September 30, 2022, consistent with the prior quarter and up substantially from Q3 2021, as defined internally by the Company.

Net derivative asset balance. The total net derivative asset on the balance sheet as at September 30, 2022 was $3.5 million, a decrease of $53.3 million from Q2 2022, as a result of reclassified true up revenue of $64 million realized in July 2022, along with other mark to market changes in the value of oil in the ONP. As at September 30, 2022 approximately 2.4 million barrels remained in the ONP.

Operational and Financial Highlights Subsequent to September 30, 2022

Excellent well 13H results. Well 13H successfully tested at over 8,000 bopd during its first week of production and has averaged approximately 6,200 bopd month to date ending November 14, 2022, which was slightly constrained during this period. At its current trend and assuming a $55/bbl netback, the well is on track to payout within 60 days. In addition, the technical team encountered the producing formation five meters higher near the end of the horizontal section of the well possibly increasing future oil in place and reserve estimates.

Commenced drilling well 12H. On October 16, 2022, the Company commenced drilling well 12H with a budgeted cost of $14 million and estimated completion in mid December 2022.

Slowly rising river levels in November. During the month of October, river levels in Brazil continued to be at record low levels, in some cases, exposing sand bars above the water level. This significantly impacted the Company's ability to sell oil in the month of October limiting production to approximately 6,500 bopd. The Company expects to sell nearly 900 thousand barrels over November and December as river levels return to normal.

On November 10 and 11th, 2022 the Company was able to produce over 20,000 bopd.

2021 ESG report being finalized. Over the coming weeks PetroTal will release its second annual Sustainability Report covering the 2021 year. The Company is now calibrated to Sustainability Accounting Standards ("SASB"), Global Reporting Initiatives ("GRI"), and Sustainable Development Goal standards and is committed to being a sustainable energy leader in Peru. In 2021, the Company had zero hydrocarbon spills, delivered a scope 1 emissions intensity metric of 11.4 kg/bbl, and invested millions in various ESG projects as outlined in the report, showcasing the modest operational footprint that the Company has managed in the Loreto region.

Petroperu update. The Company continues to work with Petroperu's management team to assess and negotiate payment of approximately $90 million of receivable value. On October 10, 2022 the government of Peru agreed to make a capital contribution to Petroperu of $1 billion in order to strengthen its financial capacity for continued operations, and provide $500 million of credit facility support. The priority of allocation is immediate fuel and energy needs in Peru, and the Company expects that the $64 million outstanding amount owed to the Company will be paid on a negotiated payment schedule.

Guidance Update

The Company is adjusting Q4 2022, and therefore 2022 guidance based on October 2022 and early November river conditions into Brazil. Final 2022 guidance is now between 12,000 and 13,000 bopd for Q4 2022 and 2022 full year.

Adjusted Guidance	Q1 (actual)	Q2 (actual)	Q3 (actual)	Q4	2022
Oil wells completed	1 (10H)	1 (11H)	0	2	4
Average Production (bopd)	11,746	14,467	12,229	12,000 - 13,000	12,000-13,000
CAPEX (millions)	$18	$24	$21	$37	$100

USD millions, unless stated otherwise	Guidance
Realized Brent (USD/bbl)	~$80
Average Production (bopd)	12,000 - 13,000
Net operating income	$292
G&A	($21)
Net derivative settlements	$27
Adjusted EBITDA	$298
CAPEX	($100)
Free cash flow	$198

PetroTal Rebranding

PetroTal is excited to announce a corporate rebranding which includes a new vision, color scheme and logo design. Over the coming weeks we will be rolling out a new website with many new and exciting features for investors and or interested stakeholders. Further updates on this will be made when available.

Updated Corporate Presentation and investor webcast

Please see the Company's newly designed investor presentation now posted at www.petrotal-corp.com.

Webcast link for November 17, 2022 at 8am MDT

https://stream.brrmedia.co.uk/broadcast/63590b2298f6352ab0eba9cc

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

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.

FORWARD-LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; drilling, completions, workovers and other activities and the anticipated costs and results of such activities; PetroTal's revised 2022 guidance and budget including, but not limited to, estimated or anticipated production levels, capital expenditures and drilling plans; the intention to redeem the outstanding bonds and become debt free; a future robust capital return program; PetroTal's plans to deliver strong operational performance and to generate free cash flow and growth; capital requirements and the Company's ability to access capital on desirable terms and within required timelines; the ability of the Company to achieve drilling success consistent with management's expectations; the ability of the Company to achieve near term production targets and operate at unrestricted levels; anticipated future production and revenue; drilling plans including the timing of drilling, commissioning, and startup and the impact of delays thereon; revised 2022 guidance; oil production levels and production growth, including average and exit production in 2022; future oil sales and sales expansion through alternative exports routes, including barging and trucking; the Company's proposals for collaboration with local communities; future river water levels and their impacts on transportation systems; and future development and growth prospects. 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, 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, 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, wars (including Russia's war in Ukraine), 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. The ongoing war between Russia and Ukraine has the potential to threaten the supply of oil and gas from the region. The long-term impacts of the war between these nations remains uncertain. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, increased operating and capital costs due to inflationary pressures, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Corporation's annual information form (filed April 28, 2022) and MD&A (filed November 17, 2022) (the "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.

SHORT-TERM PRODUCTION RATES: References in this press release to the initial week of production of well 13H 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. "Netback" (non-GAAP financial ratio) equals total petroleum sales less quality discount, lifting costs, transportation costs and royalty payments calculated on a bbl basis. The Company considers netbacks to be a key measure as they demonstrate Company's profitability relative to current commodity prices. "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. "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 cash flow" (non-GAAP financial measure) is calculated as net operating income less G&A less exploration and development capital expenditures and is calculated prior to all debt service, taxes, lease payments, hedge costs, factoring, and lease payments. Management uses free cash 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.

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/144556

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PetroTal Announces Robust Initial Production For Well 13H

Average production over 8,000 bopd during first week

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - November 3, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the successful testing results of well 13H, the Company's thirteenth producing well.

Well 13H highlights

Well 13H has successfully tested at approximately 8,000 barrels of oil per day ("bopd") over its first week of production, placing it in the top horizonal producers drilled by the Company, with the November 2, 2022 rate at 7,825 bopd;

To optimize operations, well 13H was drilled ahead of well 12H to save time and cost related to skidding the rig to the corresponding cellar;

The well was drilled to a total measured depth of 4,864 meters, including a 1,152 meter lateral section making it the longest reach horizontal well the Company has drilled;

The total cost of the well was $14.4 million, within budget and completed on time without any operational issues;

Well 13H was successfully completed on October 13, 2022, however, it could not be fully tested until October 27, 2022 when internal storage capacity became available. Barging logistics continue to improve with the Company now expecting to raise production levels by mid-November;

Current field production capacity is over 20,000 bopd; and,

Well 13H encountered the target producing formation approximately three meters higher than prognosis and approximately five meters higher at the end of the horizontal section which could have a positive impact on the oil-in-place estimates and reserves.

Well 12H

PetroTal continues its active drilling program to further increase its low cost, high margin production at Bretana. On October 16, 2022, the Company commenced drilling well 12H with an approximate cost of $14.0 million and an estimated completion in mid-December 2022.

Q3 2022 Financial and Operating Results

The Company will release its Q3 2022 financial and operating results on November 17, 2022 and will host a live webcast at 9am CDT time. Please see the webcast link below:

https://stream.brrmedia.co.uk/broadcast/63590b2298f6352ab0eba9cc

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

"We are pleased to announce the successful and productive 13H oil well, our longest horizontal well to date. We look forward to seeing the 12H well deliver similar results. We will continue to operate and develop our assets with prudent and safe operational practices that deliver best in class productivity for employees and shareholders."

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

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/142907

by wpengine

PetroTal Announces Q3 2022 Operations and Liquidity Update

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - October 13, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce the following operational and corporate updates.

Q3 2022 Production

PetroTal's Q3 oil production was approximately 1.12 million barrels, representing 12,229 barrels of oil per day ("bopd"), which was the Company's second best producing quarter to date. The current technical production capacity of the Bretana oilfield is approximately 18,000 bopd, prior to the upcoming completion of well 13H. The third quarter is a seasonally dry quarter, but this year the river water levels were unusually low, so PetroTal took the precaution of loading barges to a reduced capacity to ensure their safe operation while traveling. As a result, production was constrained during this period to match reduced export capacity, which has been impacted from the continued closure of the Northern Peruvian Pipeline ("ONP"). As the dry period passes and water levels rise, the Company expects to return to increased levels of barge capacity.

Well 13H Update

On October 4, 2022, well 13H reached its total depth and is now being completed. At an unconstrained level, the Company expects to again have production capacity of over 20,000 bopd that can be quickly activated once river levels normalize, and additional barges are made available.

ONP and Barging Update

The ONP remains down as Petroperu continues to work through maintenance activities related to damage at various points on the pipeline. The Company is working with the new management of Petroperu to develop a view on when it may be able to resume exports through the ONP, but currently assumes this will not happen in 2022.

The Company is also working actively to expand the capacity of its export route to Brazil, both through expansions of the barge fleet and optimization of the round trip time with the eventual goal of reaching 1 million barrels of capacity. The Company expects to continue increasing its monthly Brazilian export capacity from the initial 120,000 barrels exported in December 2020 to an average of 600,000 barrels per month in 2023, without reliance on the ONP. In May and August 2022, the Company exported 470,000 and 450,000 barrels respectively, to Brazil, prior to being impacted by low river levels.

Liquidity Update

As at September 30, 2022 the Company had approximately $93 million in total cash with $18 million being restricted. At the end of Q3 2022, accounts payable were approximately $50.6 million, and estimated accounts receivable were $123.7 million. Subsequent to the quarter end, $12 million was received related to Brazilian export sales. The majority of remaining receivables are amounts owing from Petroperu related to June's sales export at Bayovar and for oil that entered the ONP in February 2022. The overdue amount owing from Petroperu, related to the July sales export is $64 million (including VAT). PetroTal has been working diligently with the finance group at Petroperu to establish a repayment schedule for the $64 million and to ensure the February invoice amount is a priority once their credit is reactivated.

Adjusted 2022 Guidance - Assuming no ONP availability

Adjusted Guidance	Q1 (actual)	Q2 (actual)	Q3 (actual)	Q4 (constrained)	2022
Oil wells completed	1 (10H)	1 (11H)	0	2 (13H + 12H)	4
Average Production (bopd)	11,746	14,467	12,229	16,500	13,500 - 14,000

USD millions, unless otherwise stated	Guidance
Realized Brent (USD/bbl)	$80
Average Production (bopd)	13,500 - 14,000
Net operating income	$309
G&A	($22)
Net derivative settlements	$22
Adjusted EBITDA	$309
CAPEX	($98)
Free cash flow	$211

Debt Reduction Strategy

The Company now expects the full bond settlement to be made by the end of Q1 2023, at which time, there will be a reduction of the call premium, saving approximately $2.6 million in buyout costs. Thereafter, as previously indicated and liquidity permitting, the Company expects to begin a capital return program to shareholders. PetroTal is currently in compliance with all bond covenants and expects to remain so prior to the expected retirement date.

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

"We continue to work with our trader to increase their overall available contracted barging fleet size to alleviate oil export constraints, which have been compounded by the unavailability of the ONP since early 2022. We are adjusting our 2022 guidance to reflect a conservative sales scenario, which we hope to exceed should the ONP become a viable sales option in Q4 2022. Under this conservative scenario, cash flow is still very strong allowing the Company to deliver on its promised shareholder return program in 2023. Additionally, we are looking forward to finalizing the ongoing successful working table discussions related to the social trust."

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

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

Corporate Logo

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/140338

by wpengine

PetroTal Announces Exercise of Performance Warrants and Total Voting Rights

Calgary, AB and Houston, TX – October 10, 2022 - PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL, AIM: PTAL and OTCQX: PTALF) announces that it received a notice to exercise 402,806 Performance Warrants at a price of US$0.1869 (in a net basis) per Common Share.

Following this warrant exercise, the Company will have 963,440 Performance Warrants outstanding. Application will be made for admission of the 402,806 common shares, which will rank pari passu with existing Common Shares, to trading on AIM ("Admission"), which is expected to occur on or around October 13, 2022.

Following Admission, the Company will have 859,323,993 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.

ABOUT PETROTAL
PetroTal is a publicly traded, tri‐quoted (TSXV: 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 2020, Petrotal became the second 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
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, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; and the impact of social disruption on the Company's operations, including a potential field shutdown at Bretana. 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. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2020 and management's discussion and analysis for the three and nine months ended September 30, 2021 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.

by Erin Vito

PetroTal Announces Results of Shareholders' Meeting, Director Dealing, TVR and Other Corporate Items

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - September 20, 2022) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") is pleased to announce that all matters presented for approval at the annual special meeting of shareholders held on September 15, 2022 have been fully authorized and approved.

Annual General and Special Meeting on September 15, 2022

The Company welcomes two new directors (Messrs. Carranza and Harris), and thanks retiring directors (Messrs. Guidry and Ellson). The following are PetroTal's duly elected Directors:

Mark McComiskey - Chair
Manuel Pablo Zuniga-Pflucker - President and CEO
Eleanor Barker - Non-Executive Director
Luis Carranza - Non-Executive Director
Jon Harris - Non-Executive Director
Roger Tucker - Non-Executive Director
Gavin Wilson - Non-Executive Director

PSU Issue

The Company also announces that it has issued an aggregate of 5,547,808 Common Shares to employees 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. Of the 5,547,808 Common Shares issued, 4,442,890 Common Shares were issued to Officers.

Further details regarding the Company's PSU plan are set out in the management information circular of the Company dated August 3, 2022 which is available on SEDAR at www.sedar.com.

Exercise of Investor Warrants

The Company has received a notice to exercise 878,220 Investor Warrants at a price of 16 pence per Common Share from an investor in relation to the Investor Warrants issued on June 12, 2020. The Company received proceeds of £140,515 from the Investor Warrants exercised and has issued 878,220 new Common Shares.

Exercise of Performance Warrants

The Company has received a notice to exercise 300,000 Performance Warrants at a price of $0.1869 per Common Share from a warrant holder. The Company received $56,070 USD from the Performance Warrants exercised and has issued 300,000 new Common Shares.

Following the abovementioned warrant exercises, the Company will have 59,875,687 and 1,603,440 Investor Warrants and Performance Warrants, respectively, outstanding.

Admission to Trading and TVR

For the above issuances, application will be made to the London Stock Exchange for the admission of, in aggregate, 6,726,028 Common Shares to trading on AIM ("Admission") and to the TSXV for listing of 6,726,028 Common Shares for trading on the facilities of the TSXV. It is expected that Admission will become effective at 8:00 am London time on or around September 23, 2022.

Following Admission, the Company will have 858,921,187 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 858,921,187 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.

PDMR Notification Form

1	Details of the person discharging managerial responsibilities / person closely associated
a)	Name	Manuel Pablo Zuniga-Pflucker Douglas Urch
2	Reason for the notification
a)	Position/status	President & Chief Executive Officer Executive Vice President & Chief Financial Officer
b)	Initial notification /Amendment	Initial notification
3	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	PetroTal Corp.
b)	LEI	21380047ER33PRH4XH56
4	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the financial instrument, type of instrument	PetroTal Corp. Common Shares

	Identification code	CA71677J1012

b)	Nature of the transaction	Issue of Common Shares under the Company's performance and restricted share unit plan
c)	Price(s) and volume(s)
			Price	Volume
			n/a n/a	3,310,577 1,132,313

d)	Aggregated information	n/a

	- Aggregated volume

	- Price

e)	Date of the transaction	15 September 2022
f)	Place of the transaction	TSX-V Exchange

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

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/137748

by wpengine

2022

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