PetroTal Announces First Quarter Financial Results and Operations Update

Calgary, Alberta and Houston, TexasMay 28, 2018—PetroTal Corp. (“Petrotal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to provide a summary of its financial and operating results for the three months ended March 31, 2019.

Selected financial and operational information is outlined below and should be read in conjunction with the Company’s unaudited consolidated financial statements (“Financial Statements”) and management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2019, which are available on SEDAR at www.sedar.com and the Company’s website at www.petrotal-corp.com.  Reserves numbers presented herein were derived from an independent reserves report (the “NSAI Report”) prepared by Netherland, Sewell & Associates, Inc. (“NSAI”) effective December 31, 2018. All figures referred to in this press release are denominated in U.S. dollars.

2019 FIRST QUARTER HIGHLIGHTS

  • Produced approximately 85,000 barrels of oil during the first quarter
  • Successfully mobilized the drilling rig to the drilling pad at Bretaña to begin drilling the BN 95-2-2-2XD well in February
  • Increased the net present value discounted to 10 percent (“NPV10”) of the Company’s proved plus probable (“2P”) reserves year over year by 90 percent to $535 million as of December 31, 2018

OPERATIONS UPDATE

The Company continued the initial testing phase at the Bretaña oil field and produced an average of 944 barrels of oil per day (“BOPD”) during the quarter.  The Company mobilized a drilling rig to the Bretaña field to begin development and appraisal.  The Company successfully drilled and completed the BN 95-2XD well in the northern section of the field.  As previously reported, the well came online at 2,250 BOPD and over the past 30 days averaged over 2,300 BOPD.  The follow up well, BN 95-3H was spud on April 21, 2019 and the Company is currently drilling the horizontal section of the well. The BN 95-3H is being drilled to the offset side of the northern portion of the field and will be completed as a horizontal well in the Vivian formation.

Manolo Zuniga, President and Chief Executive Officer stated:

The first quarter was all about execution and the team did an excellent job delivering the first well on time and on budget.  We continue to drill the third oil producer which will be PetroTal’s first horizontal completion.  We have a lot to accomplish this year but we are well on the way to hitting the mid-year production target of 5,000 BOPD.  And finally, the NSAI Report  showed a year over year increase of 90 percent increase in 2P NPV-10 to $535 million; driven mostly by the team recommending using our own produced crude oil for power generation thus reducing operating expenses going forward.  We are pleased with the results to date, and we are prepared for what will be a very active middle and second half of the year.”   

FINANCIAL HIGHLIGHTS

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

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐listed (TSX‐V: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's development asset is the Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018. 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 and exploiting the Bretaña oil field.  More information on the Company can be found at www.PetroTal‐Corp.com.

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

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

Mark Antelme / Henry Lerwill
Celicourt Communications
petrotal@celicourt.uk
T : 44 207 520 9261

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

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

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

READER ADVISORIES 

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to the Company’s objectives; the Company’s proposed drilling, completions and other activities and the anticipated results of such activities; cost controls and savings; anticipated future production and revenue; future development and growth prospects.  In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions.  The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside,  prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s MD&A and annual information form for the year ended December 31, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: The NSAI Report was prepared by NSAI, an independent qualified reserves evaluator, in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and the reserve definitions contained in National Instrument 51‐101 – Standards of Disclosure for Oil and Gas Activities (“NI 51‐101”).

References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, NPV10 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 provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

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


PetroTal Provides Update on Earthquake Affecting Northern Peru

Calgary and HoustonMay 27, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL), a development and production company focused on oil assets in Peru, is providing an update to the earthquake that struck Northern Peru on Sunday May, 26, 2019.

The Company was notified that no injuries were sustained by personnel at the Bretana oil field,  and the drilling and production teams report no impact to the operations.  The Bretana platform was engineered to be able to withstand situations such as this. The Company is currently conducting tests to drilling and production equipment to assure safe and efficient operations.

PetroTal, through its Corporate Social Responsibility (“CSR”) team, is reaching out to the surrounding communities to assess damage.  PetroTal is committed to assuring that our operations are safe and environmentally secure, as well as providing assistance to the local communities.

Manolo Zuniga, President and Chief Executive Officer, said:

“PetroTal’s operations are ongoing as normal.  This includes our drilling of the BN 95-3H well as well as production from the two oil wells at the location.  We are concerned about the local communities and the damage they may have suffered, but I am extremely proud of our CSR team who acted immediately to initiate contact, assess damage, and provide assistance as we can to the local people.”

ABOUT PETROTAL

PetroTal is a publicly-traded independent oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru.  The Company’s management team has significant experience in developing oil fields in Northern Peru and is focused on safely and cost effectively developing and exploiting the Bretaña oil field in Block 95 and to continue to evaluate the Osheki prospect in Block 107.

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

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

Mark Antelme / Henry Lerwill
Celicourt Communications
petrotal@celicourt.uk
T : 44 207 520 9261

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

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

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

READER ADVISORIES 

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to PetroTal’s business strategy, objectives, strength and focus and the impact of the declaration of commerciality in respect of the Bretana oil field. 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. In addition, statements relating to expected production, reserves, resources, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2017 and management’s discussion and analysis for the three and nine months ended September 30, 2018, 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.


PetroTal Announces Fiscal Year-end Financial Results and Operations Update

Calgary, Alberta and Houston, Texas April 24, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to provide a summary of its 2018 year-end financial and operating results.

Selected financial, reserves and operational information is outlined below and should be read in conjunction with the Company’s audited consolidated financial statements (“Financial Statements”), management’s discussion and analysis (“MD&A”) and annual information form (“AIF”) for the year ended December 31, 2018, which are available on SEDAR at www.sedar.com and the Company’s website at www.PetroTal-Corp.com. Reserves numbers presented herein were derived from an independent reserves report (the “NSAI Report”) prepared by Netherland, Sewell & Associates, Inc. (“NSAI”) effective December 31, 2018. All figures referred to in this press release are denominated in U.S. dollars.

2018 HIGHLIGHTS

  • Commenced operation of Bretaña oil field assets, bringing the field on production in five months;
  • Completed the Long-Term Testing facility installation and initiated production, 25 percent under budget;
  • Full field oil production facilities brought online in October 2018;
  • Declared commercialty in the Bretaña field in November 2018;
  • 176,000 barrels (“bbl”) of oil produced during 2018, and approximately 280,000 barrels to date;
  • Proved (“1P”) Reserves estimated at approximately 17.9 million(1) bbl of oil gross;
  • Proved + Probable (“2P”) Reserves estimated at approximately 39.4 million(1) bbl of oil gross;
  • Proved + Probable + Possible (“3P”) Reserves estimated at approximately 78.7 million(1) bbl of oil gross;
  • Pre-tax NPV-10 of approximately $535 million for 2P Reserves and $1.25 billion for 3P Reserves; and
  • 2P Reserves NPV-10 increase of 90%.

Note:

  1. Reserves include a total of approximately 2,963.6 Mbbl (3P) of oil for surface facility use across all categories (960.7 Mbbl (1P) and 1,818.2 Mbbl (2P)). See “Summary of Oil Reserves and Net Present Values as of December 31, 2018” for a summary of Company reserves, which exclude these amounts.

OPERATIONS UPDATE

The Company’s objective of developing the Bretaña oil field on a modular basis and putting the field online by year-end 2018 was accomplished ahead of schedule and under budget.  Although the Company initially estimated the process to bring the field online would take 10-12 months and approximately $24 million in capital costs, it was accomplished in five months for a total capital cost of approximately $18 million.  In October, the field’s first phase oil production facilities were installed on time and within budget.  The Company was able to declare commerciality in Bretaña with the achievement of sustained production operations.  PetroTal successfully completed a secondary listing on the AIM Market of the London Stock Exchange, with first trading on December 24, 2018.  The year-end oil reserves, which were previously announced on April 11, 2019, are summarized in the charts below.

 

2018 YEAR-END RESERVES SUMMARY

The summary below sets forth PetroTal’s reserves as at December 31, 2018, as presented in the NSAI Report. The figures in the following tables have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and the reserve definitions contained in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). In addition to the summary information disclosed in this press release, more detailed information is included in the AIF.

The reserves estimated by NSAI on the charts below exclude up to three million barrels that are expected to be used for power generation in the field.

Company

Heavy Oil Reserves(2)

(Mbbl)(1)

Future Net Revenue

Before Income Taxes (USM$)(4)(5)(6)

Category Gross Net Discounted at 0% Discounted at 5% Discounted at 10% Discounted at 15% Discounted at 20%
Proved Developed Producing

Proved Undeveloped

1,559.0

15,378.5

1,559.0

15,378.5

75,696.3

202,879.9

61,506.5

143,618.9

51,624.6

99,380.2

44,472.9

66,606.6

39,112.0

42,129.6

Total Proved 16,937.5 16,937.5 278,576.2 205,125.4 151,004.8 111,079.5 81,241.6
Probable Undeveloped 20,597.8 20,597.8 772,240.6 523,525.2 384,528.6 299,631.9 243,749.6
Proved + Probable 37,535.4 37,535.4 1,050,816.8 728,650.6 535,533.4 410,711.4 324,991.2
Possible Undeveloped 38,278.9 38,278.9 1,684,251.1 1,060,626.2 718,814.0 516,783.2 389,791.8
Proved + Probable + Possible 75,814.2 75,814.2 2,735,067.9 1,789,276.8 1,254,347.5 927,494.6 714,783.0

Notes:

  1. Totals may not add because of rounding. Mbbl are thousands of barrels.
  2. PetroTal owns a 100 percent company gross interest and a 100 percent company net interest in these properties. Company reserves exclude a total of approximately 2,963.6 Mbbl (3P) of oil for surface facility use across all categories (960.7 Mbbl (1P) and 1,818.2 Mbbl (2P)).
  3. Net reserves do not include deductions for royalty expenses for net oil volumes; government royalties are included in property and mineral taxes.
  4. Based on NSAI’s December 31, 2018 escalated price forecast. See “Summary of Pricing and Inflation Rate Assumptions – Forecast Prices and Costs”.
  5. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Company’s reserves estimated by NSAI represent the fair market value of those reserves.
  6. All future net revenues are estimated using forecast prices and cost assumptions, arising from the anticipated development and production of reserves, after the deduction of royalties, operating costs, development costs and abandonment and reclamation costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses. There is no assurance that the forecast prices and costs assumptions will be attained, and variances could be material. The recovery and reserve estimates of the Company’s reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.  Actual reserves may be greater than or less than the estimates provided herein.

SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS – FORECAST PRICES AND COSTS

The forecast cost and price assumptions assume increases in wellhead selling prices and include inflation with respect to future operating and capital costs. Crude oil benchmark reference pricing, inflation and exchange rates utilized by NSAI as at December 31, 2018 were as follows:

Period Ending Oil Price (US$/BBL)
12-31-2019 63.88
12-31-2020 68.20
12-31-2021 70.98
12-31-2022 73.35
12-31-2023 75.40
12-31-2024 77.35
12-31-2025 79.40
12-31-2026 81.61

Thereafter, escalated 2 percent on January 1 of each year.

Future Development Costs

The following information sets forth development costs deducted in the estimation of PetroTal’s future net revenue attributable to the reserve categories noted below:

  • Proved $178.0 million
  • Proved + Probable $251.1 million
  • Proved + Probable + Possible $368.8 million

The future development costs are estimates of capital expenditures required in the future for PetroTal to convert the corresponding reserves to proved developed producing reserves.

In 2019, the Company drilled and completed a second oil producing well at Bretaña, the BN 95-2-2-2XD, on time and within budget.  The well came online at approximately 2,250 bbl of oil per day (“BOPD”) in a vertical completion in the Vivian formation.  The well, which reached total depth on April 9, 2019, was completed as an oil producer in the Vivian formation in the northern portion of the Bretaña structure.  The well was brought online at an initial rate of approximately 2,250 barrels of oil per day (“BOPD”). This is an early production rate and more detailed production data will be announced in due course.  The team also spud a third oil development well, the BN-95-3H, which will be a horizontal producer in the Vivian formation, and which is expected to come online in mid-June.

Manolo Zuniga, PetroTal’s President and Chief Executive Officer, stated:

“We are executing on multiple fronts and in 2018 we accomplished many milestones that will set the Company up for future success and growth.  Our operations team has been hitting on all cylinders, bringing the field online early, either on or under budget, and moving into commercial production at year end.  Our reserves report showed a significant increase in present value across all reserve categories.  With our 2P pre-tax NPV-10 at approximately $535 million, we have grown the value to our stakeholders by 90 percent.”

“To date in 2019 we have drilled and completed the second producing oil well at Bretaña, having come online only one week ago at 2,250 BOPD.  This rate was over the course of five days and we will provide more detail on the well and its production when we have sustained production data, to allow for a better stabilized rate.  We have moved on with the spud of the third oil producing well which we expect to be online in mid-June.  The original producer is still producing approximately 800 BOPD, in line with our internal expectations due to normal declines expected as water is produced from the aquifer that is the main drive mechanism for the Vivian formation.”

NEAR AND MEDIUM-TERM OBJECTIVES

  • Drill and complete up to four wells to materially contribute to production totals in 2019;
  • Install phase two production facilities in the field with oil production capacity of 10,000 BOPD;
  • Secure farm-out partner and drill high impact Osheki exploration well on Block 107;
  • Continue Bretaña development drilling and install future phases of production facilities; and
  • Look for strategic and synergistic acquisitions to expand the Company’s asset base in Peru.

FINANCIAL HIGHLIGHTS

The following table summarizes key financial highlights associated with the Company’s financial performance for the years ended December 31, 2018 and 2017. See the Financial Statements and MD&A for further details.

December 31, 2018
US$000s
December 31, 2017 US$000s
Net Revenues 9,994 -
Net Loss (4,621) (2,754)
Total Assets 96,097 98,766
Total Liabilities 18,570 16,723
Total Shareholders’ Equity 77,527 82,043

OTHER COMPANY UPDATES

Charles Fetzner, VP of Asset Development, resigned from the Company for personal family reasons effective as of April 18, 2019.  Mr. Fetzner was a founder of PetroTal LLC, the original private company, in December 2015 and was part of the new management team following the completion of PetroTal’s go-public transaction on December 18, 2017.

Mr. Zuniga commented “We wish Chuck and his family the best and we fully understand his desire to spend time with his family at this time.  Chuck was an integral part of our transition from a private company to public entity.  Mr. Estuardo Alvarez-Calderon, VP of Exploration and Production, will assume Chuck’s responsibilities which include the important Osheki farm-in process.  Again, we wish the Fetzner family the best.”

As previously announced on September 14, 2018 and October 31, 2018, the Corporation has issued an aggregate of 4,008,333 performance share units (“PSUs”) to certain officers of the Company.  The original terms of the PSUs provided for vested in equal tranches over three years. The Board of Directors has amended the terms of the PSUs to provide that the PSUs awarded to executives will vest three years from the date of issuance.  The Board believes the change to the vesting terms will strengthen the link between executive compensation and long-term shareholder value.

ABOUT PETROTAL

PetroTal is a publicly-traded, dual-listed (TSX-V: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's development asset is the Bretaña oil field in Peru's Block 95 where oil production was initiated in June 2018. 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 and exploiting the Bretaña oil field.  More information on the Company can be found at www.PetroTal-Corp.com.

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com

T: (713) 609-9101

Manolo Zuniga
President and Chief Executive Officer
Mzuniga@Petrotal-Corp.com

T: (713) 609-9101

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

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

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

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

 

READER ADVISORIES 

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal’s business strategy, objectives, strength and focus, including developing the Bretaña oil field on a modular basis; drilling and completion activities and the results of such activities; construction of production facilities; securing a farm-out partner in Osheki; future acquisitions; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production and revenue; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future.

Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside,  prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in AIF and MD&A, which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, NPV-10, future net revenue, future development costs and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

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


PetroTal Brings Second Oil Well Online and Spuds Third Well in Bretaña Field

Calgary, Alberta and Houston, TexasApril 23, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to announce that the Company has placed a second oil well, the BN 95-2-2-2XD oil development well, on production through long term test facilities at the Bretaña field and spud a third well, the BN 95-3H oil well.

The Company’s second well, which reached total depth on April 9, 2019, was completed as an oil producer in the Vivian formation in the northern portion of the Bretaña structure.  The well was brought online at an initial rate of approximately 2,250 barrels of oil per day (“BOPD”). This is an early production rate and more detailed production data will be announced in due course.

The Company has also spud the BN 95-3H well the northern portion of the Bretaña field, which will be completed as a horizontal producer in the Vivian formation.  This well is expected to take 60 days to drill, complete and be brought online.

The Company’s first discovery well, which came online in mid-2018, is producing an average of 800 BOPD.

Manolo Zuniga, President and Chief Executive Officer, commented:

“We are pleased that the second oil well has come online as planned.  The initial rate is an early production rate, however. Once the well has had time to stabilize, we will provide additional information to stakeholders.  With the first two wells online the field has exceeded 3,000 BOPD.  The Company’s third oil well was spud on April 20, 2019.  This well will also target the northern part of the field which will give us additional data points to continue defining the reservoir.”

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

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

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

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

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

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

READER ADVISORIES 

 

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal’s business strategy, objectives, strength and focus; drilling and completion activities and the results and timing of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production and revenue; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2017 and management’s discussion and analysis for the three and nine months ended September 30, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

 

OIL AND GAS INFORMATION: References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary.

 

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including Canadian Securities Administrators’ National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.

 

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


PetroTal Announces Year-end 2018 Oil Reserves

New report shows NPV-10 growth of 90% to $535 million for 2P Reserves and $1.25 billion for 3P Reserves

Calgary, Alberta and Houston, Texas – April 11, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to provide a summary of the Company’s 2018 year-end reserves in the Bretaña field in Northern Peru.  Reserves numbers presented herein were derived from an independent reserves report (the “NSAI Report”) prepared by Netherland, Sewell & Associates, Inc. (“NSAI”) effective December 31, 2018. Unless otherwise noted, all figures referred to in this press release are denominated in U.S. Dollars.

2018 Year-end Reserve Highlights

  • Proved (“1P”) Reserves estimated at approximately 17.9 million(1) barrels (“bbl”) of oil gross;
  • Proved + Probable (“2P”) Reserves estimated at approximately 39.4 million(1) bbl of oil gross;
  • Proved + Probable + Possible (“3P”) Reserves estimated at approximately 78.7 million(1) bbl of oil gross;
  • NPV-10 of approximately $535 million for 2P Reserves and $1.25 billion for 3P Reserves; and
  • 2P Reserves NPV-10 increase of 70%.
Note:
1. Reserves include a total of approximately 2,963.6 Mbbl (3P) of oil for surface facility use across all categories (960.7 Mbbl (1P) and 1,818.2 Mbbl (2P)). See “Summary of Oil Reserves and Net Present Values as of December 31, 2018” for a summary of Company reserves, which exclude these amounts.

The Company has certified total 2P reserves of 39.4 million barrels of recoverable oil at the Bretaña field. The net present value of before tax future net revenues discounted at 10 percent (“NPV-10”) of 2P oil reserves is approximately $535 million.  On a 1P Reserves basis, reserves increased by 22% to 17.9 million bbl from 14.7 million bbl gross, with an associated NPV-10 increasing three-fold to $151 million from $38 million.  Additionally, the NPV-10 of the 3P Reserves increased by 58%.

Manolo Zuniga, PetroTal’s President and Chief Executive Officer, stated:

“The increased NPV-10 is a result of lower than expected development costs, partly as a result of using produced oil to power the field.  The lower development costs truly drive the NPV-10 of the project, where we see a major increase from $282 million to $535 million.   Even more important is the NPV-10 of the 3P reserves, estimated at $1.25 billion, which underpins our future value, which could primarily be obtained by increasing the field’s recovery factor.”

2018 Year-end Reserves Summary

The summary below sets forth PetroTal’s reserves as at December 31, 2018, as presented in the NSAI Report.  The figures in the following tables have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and the reserve definitions contained in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). In addition to the summary information disclosed in this press release, more detailed information will be included in PetroTal’s annual information form for the year ended December 31, 2018 (the “AIF”) to be filed on SEDAR (www.sedar.com) and posted on PetroTal’s website (www.Petrotal-corp.com) in April 2019.

The reserves estimated by NSAI on the charts below exclude up to three million barrels that are expected to be used for power generation in the field.

Summary of Oil Reserves and Net Present Values as of December 31, 2018

Company

Heavy Oil Reserves(2)

(Mbbl)(1)

Future Net Revenue

Before Income Taxes (USM$)(4)(5)(6)

Category Gross Net Discounted at 0% Discounted at 5% Discounted at 10% Discounted at 15% Discounted at 20%
Proved Developed Producing

Proved Undeveloped

1,559.0

15,378.5

1,559.0

15,378.5

75,696.3

202,879.9

61,506.5

143,618.9

51,624.6

99,380.2

44,472.9

66,606.6

39,112.0

42,129.6

Total Proved 16,937.5 16,937.5 278,576.2 205,125.4 151,004.8 111,079.5 81,241.6
Probable Undeveloped 20,597.8 20,597.8 772,240.6 523,525.2 384,528.6 299,631.9 243,749.6
Proved + Probable 37,535.4 37,535.4 1,050,816.8 728,650.6 535,533.4 410,711.4 324,991.2
Possible Undeveloped 38,278.9 38,278.9 1,684,251.1 1,060,626.2 718,814.0 516,783.2 389,791.8
Proved + Probable + Possible 75,814.2 75,814.2 2,735,067.9 1,789,276.8 1,254,347.5 927,494.6 714,783.0
Notes:
  1. Totals may not add because of rounding. Mbbl are thousands of barrels.
  2. PetroTal owns a 100 percent company gross interest and a 100 percent company net interest in these properties. Company reserves exclude a total of approximately 2,963.6 Mbbl (3P) of oil for surface facility use across all categories (960.7 Mbbl (1P) and 1,818.2 Mbbl (2P)).
  3. Net reserves do not include deductions for royalty expenses for net oil volumes; government royalties are included in property and mineral taxes.
  4. Based on NSAI’s December 31, 2018 escalated price forecast. See “Summary of Pricing and Inflation Rate Assumptions – Forecast Prices and Costs”.
  5. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Company’s reserves estimated by NSAI represent the fair market value of those reserves.
  6. All future net revenues are estimated using forecast prices and cost assumptions, arising from the anticipated development and production of reserves, after the deduction of royalties, operating costs, development costs and abandonment and reclamation costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of the Company’s reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.  Actual reserves may be greater than or less than the estimates provided herein.
Period Ending Oil Price (US$/BBL)
12-31-2019 63.88
12-31-2020 68.20
12-31-2021 70.98
12-31-2022 73.35
12-31-2023 75.40
12-31-2024 77.35
12-31-2025 79.40
12-31-2026 81.61

Thereafter, escalated 2 percent on January 1 of each year.

Future Development Costs

The following information sets forth development costs deducted in the estimation of PetroTal’s future net revenue attributable to the reserve categories noted below:

Proved                                                      $178.0 million

Proved + Probable                                  $251.1 million

Proved + Probable + Possible              $368.8 million

The future development costs are estimates of capital expenditures required in the future for PetroTal to convert the corresponding reserves to proved developed producing reserves.

About PetroTal

PetroTal is a publicly-traded, dual-listed (TSX-V: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's development asset is the Bretaña field in Peru's Block 95 where oil production was initiated in June 2018. 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 and exploiting the Bretaña oil field.

Qualified Person Review

Manuel Pablo Zúñiga-Pflücker, President and CEO, has approved the technical disclosure in this regulatory announcement in his capacity as a qualified person under the AIM Rules. Mr. Zúñiga is a petroleum engineer with over 30 years of industry experience. Mr. Zúñiga holds a Bachelor of Science degree in Mechanical Engineering from the University of Maryland and a Masters of Science degree in Petroleum Engineering from Texas A&M University. Mr. Zúñiga is a member of the Society of Petroleum Engineers.

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

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

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

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

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

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

READER ADVISORIES 

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal’s business strategy, objectives, strength and focus; drilling and completion activities and the results of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production and revenue; future development and growth prospects; and the timing of release of the AIF. All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside,  prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2017 and management’s discussion and analysis for the three and nine months ended September 30, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: This press release contains oil and gas metrics, including “future development costs”, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies. Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods. Future development costs are calculated as the sum of development capital plus the change in future development costs for the period. 

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, NPV-10, future net revenue, future development costs, and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

 

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


PetroTal Reaches Total Depth on Second Bretaña Oil Well

Calgary,
Alberta and Houston, Texas
April
9, 2019
—PetroTal Corp. (“PetroTal
or the “Company”) (TSX-V: TAL and
AIM: PTAL) is pleased to announce that the BN 95-2-2-2XD oil
development well (the “well”) which commenced drilling operations on February
26, 2019, has reach total depth. 

The well is being completed as a producer
in the Vivian formation in the northern portion of the Bretaña structure. 
This is the second oil well in the first phase of development of the Bretaña oilfield.  The well was directionally drilled to approximately 3,040 meters total
depth.  Initial logs indicate a total
gross oil column of 24 meters with estimated net oil pay of 18.7 meters, in
line with the Company’s expectations. 
The indicated oil water contact in the well was in direct correlation to
the other four wells previously drilled in the field.

Once completed the well will be placed online, expected in
approximately one week.  The Company will
provide details on flow rates with the fourth quarter and year-end earnings
release scheduled for the week of April 22, 2019.

The discovery well, which came online in mid-2018, is producing in line
with management’s expectations at an average of 950 - 1,000 barrels per day and
has accumulated over 260,000 barrels of oil produced to date.

Manolo Zuniga, President and Chief Executive Officer, commented:“We are pleased that the operations team was able to drill this well on time and on budget.  This is a testament to the entire team from drillers, to contractors, to our corporate social responsibility team who worked tirelessly to ensure safe and efficient operations.  The well logs provide an early indication that the reservoir is as we expected, with good oil shows in the mud logs and good indications from the full suite of logs obtained.  We expect this well to be online within the week and then we will proceed with drilling the BN-95-3H development oil well.”

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

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

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

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

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

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

READER ADVISORIES 

FORWARD-LOOKING STATEMENTS: This press release may
contain certain statements that may be deemed to be forward-looking statements.
Such statements relate to possible future events, including, but not limited
to: PetroTal’s business strategy, objectives, strength and focus; drilling and
completion activities and the results and timing of such activities; the
ability of the Company to achieve drilling success consistent with management’s
expectations; anticipated future production and revenue; future development and
growth prospects; and the timing of the Company’s year-end earnings press
release. . All statements other than statements of historical fact may be
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as “anticipate”, “believe”,
"expect", “plan”, “estimate”, “potential”, “will”, “should”,
“continue”, “may”, “objective” and similar expressions. The forward-looking
statements are based on certain key expectations and assumptions made by the
Company, including, but not limited to, expectations and assumptions concerning
the ability of existing infrastructure to deliver production and the
anticipated capital expenditures associated therewith, reservoir
characteristics, recovery factor, exploration upside,  prevailing commodity prices and the actual
prices received for PetroTal’s products, the availability and performance of
drilling rigs, facilities, pipelines, other oilfield services and skilled
labour, royalty regimes and exchange rates, the application of regulatory and
licensing requirements, the accuracy of PetroTal’s geological interpretation of
its drilling and land opportunities, current legislation, receipt of required
regulatory approval, the success of future drilling and development activities,
the performance of new wells, the Company’s growth strategy, general economic
conditions and availability of required equipment and services. Although the
Company believes that the expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be placed on the
forward-looking statements because the Company can give no assurance that they
will prove to be correct. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not
limited to, risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production; delays or changes
in plans with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty of estimates
and projections relating to production, costs and expenses; and health, safety
and environmental risks), commodity price and exchange rate fluctuations,
legal, political and economic instability in Peru, access to transportation
routes and markets for the Company’s production, changes in legislation
affecting the oil and gas industry and uncertainties resulting from potential
delays or changes in plans with respect to exploration or development projects
or capital expenditures. Please refer to the risk factors identified in the
Company’s annual information form for the year ended December 31, 2017 and
management’s discussion and analysis for the three and nine months ended September
30, 2018 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,
and components thereof, all of which are subject to the same assumptions, risk
factors, limitations and qualifications as set forth in the above paragraphs.
FOFI contained in this press release was made as of the date of this press
release and was provided for the purpose of providing further information about
PetroTal’s anticipated future business operations. PetroTal disclaims any
intention or obligation to update or revise any FOFI contained in this press
release, whether as a result of new information, future events or otherwise,
unless required pursuant to applicable law. Readers are cautioned that the FOFI
contained in this press release should not be used for purposes other than for
which it is disclosed herein. All FOFI contained in this press release complies
with the requirements of Canadian securities legislation, including Canadian
Securities Administrators’ National Instrument 51-101 Standards  of Disclosure for Oil and Gas Activities..

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


PetroTal Announces Spud of Second Bretaña Oil Well

Calgary, Alberta and Houston, Texas – February 28, 2019—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to announce that the BN 95-2-2-2XD oil development well (the “well”) commenced drilling operations on February 26, 2019.

The well is to be completed as a producer in the Vivian formation in the northern portion of the Bretaña structure, progressing the first phase of development of the Bretaña oilfield. The well will be directionally drilled to 3,040 meters total depth and will take up to 45 days to drill and complete. The well is the first in a program of three new producers designed to boost production to over 5,000 barrels of oil per day by mid-year 2019.

In addition to the primary objective of completing the well as an oil producer in the Vivian Formation, the drilling plan includes a deeper exploration section to test a secondary objective in the underlying Chonta formation. The Chonta formation has been a secondary producer of oil in the fields north of Bretaña.

Subsequent to the evaluation of the Chonta formation, the well will be completed as a vertical producer in the Vivian formation and later sidetracked as a horizontal producer when appropriate. This will also allow us to compare this well’s performance with the existing horizontal producer and the two remaining horizontal completions to be drilled in 2019.

Manolo Zuniga, President and Chief Executive Officer, commented:

“Drilling the second oil producer at the Bretaña oil field is an important step forward as the field development gathers momentum. The main focus of the drilling campaign is the Vivian formation, which has a gross thickness of approximately 300 feet with 100 feet of oil column at the crest of the structure. The production and pressure data from the initial vertical completion, complemented with the follow up two horizontal oil wells planned for the field in 2019, will aid Netherland Sewell & Associates, Inc., our independent reserves evaluators, to properly determine the size of the oil pool and potential recovery factor. While the Chonta formation is a deeper pool exploration target, any commercial discovery there will be impactful to the Company. The Chonta formation has produced commercial quantities of light oil from fields to the north of Bretaña, and a discovery would add synergistic reserves to the Bretaña field.”

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

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

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

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

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

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

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal’s business strategy, objectives, strength and focus; drilling and completion activities and the results of such activities; the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production and revenue; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2017 and management’s discussion and analysis for the three and nine months ended September 30, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: Estimates of production included in this press release are based upon an independent assessment completed by Netherland Sewell & Associates, Inc., a qualified independent reserves evaluator as defined in Canadian Securities Administrators’ National Instrument 51 101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), with an effective date of June 30, 2018 and prepared in accordance with the Canadian Oil and Gas Evaluation Handbook and the standards established by NI 51-101.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

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


PetroTal Announces 2019 Capital Budget and Provides Operations Update

Calgary, Alberta and Houston, TexasFebruary 13, 2019—PetroTal Corp. (“PetroTal or the “Company”) (TSX-V: TAL and AIM: PTAL) is pleased to announce its capital budget for 2019 and provide an operations update. All amounts in this release are quoted in U.S. Dollars.

2019 Capital Budget – Increasing Bretaña Field Production

  • Investment aimed at increasing production to approximately 5,000 barrels of oil per day (“BOPD”) in mid-2019
  • Drilling campaign to include targeting three new oil producing wells
  • Drilling rig mobilized to Bretaña with the first well expected to spud in February 2019
  • Second phase of facilities to further increase oil production capacity to be installed in September/October 2019

Operational Highlights

  • Ongoing commissioning of oil production facilities throughout Q4 2018 as expected
  • Production from first producer stabilized at approximately 1,100 BOPD with over 200,000 barrels of crude oil produced to date
  • Independent evaluation of oil sample demonstrates lighter 19.4 degree API oil and lower oil viscosity

Capital Budget Expenditure

The Board of Directors has approved PetroTal’s capital budget for 2019, with key spending at Block 95 as follows:

  • Drilling of three wells expected to produce oil at an average cost of $12.1 million each
  • Additional processing facilities to be installed in Q3 2019, with an expected total spend in 2019 to approximate $16.0 million, increasing capacity to 10,000 BOPD
  • One water disposal well for approximately $7.0 million
  • Abandonment costs of approximately $2.0 million associated with legacy drilling site approximately 4.5 miles south of the Bretaña drill and production pad

The Company does not intend to spend material amounts of capital in Block 107 as the primary effort there is to secure a joint interest partner, with assistance from GMP FirstEnergy in London.

Manuel Zuniga, President and Chief Executive Officer, commented:

“This capital budget is expected to allow the Company to ramp up production to approximately 5,000 BOPD in mid-2019, in line with expectations.  We have negotiated excellent terms with our rig contractor and other service providers, giving the Company additional operational flexibility as we go into this three well drilling program.

With an expected total of four wells online by the end of 2019, PetroTal will have reached an important inflection point in the development of the Bretaña Field. This will provide the momentum to further increase production to our target of over 10,000 BOPD in 2020.  We continue to monitor commodity prices and retain the flexibility to adjust our budget if required. 

Overall, 2019 is set to be an exciting year for PetroTal and its shareholders. We enter the year with a net liquidity position of approximately $22.0 million, and with the cash flow being generated from our operations, we are well placed for the year ahead.”

Operations Update

As stated above, the well the Company inherited from the previous operator was placed on production in mid-2018 and has accumulated over 200,000 barrels of crude oil production to date.  Current rates, following expected declines, approximate 1,100 BOPD.  Total production and sales in the fourth quarter of 2018, while the well was under Long Term Test, was 106,500 and 110,285 barrels of oil, respectively.  At the request of the local refinery, a second oil sample since acquisition was sent to Bureau Veritas, an international certification agency, for evaluation with the results showing the same 19.4 degree API, an improvement over the 18.5 degree API estimated at acquisition in December 2017, and also lower oil viscosity.

The next expected Bretaña oil producer, which will be the first oil well drilled by the Company, is expected to spud later this month.  The rig and accompanying equipment have been mobilized to the Bretaña oil field and is currently being rigged up.  The well is expected to be online in late March 2019

PetroTal has engaged GMP FirstEnergy’s team in London to assist in the farm-out of Block 107.  Significant interest has been shown in the asset and the Company’s intention is to sign a joint-interest partner in mid-2019 and to begin drilling the Osheki prospect in 2020.  More information on the Osheki prospect can be found in the Company’s December 2018 AIM Admission Document, which is
available on the Company’s website at www.petrotal-corp.com.

ABOUT PETROTAL

PetroTal is a publicly-traded, dual-listed (TSX-V: TAL and AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s development asset is the Bretaña field in Peru’s Block 95 where oil production was initiated in June 2018. 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 and exploiting the Bretaña oil field.

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

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

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

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

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

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

 

READER ADVISORIES 

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal’s business strategy, objectives, strength and focus; rig mobilization, drilling, water and other activities and the anticipated costs and results of such activities the ability of the Company to achieve drilling success consistent with management’s expectations; anticipated future production and revenue; drilling plans including the timing of drilling; oil production levels, including average production, exit production in 2019 and estimated ultimate recovery; decline rates; the 2019 drilling program and capital budget; securing a joint partner in respect of the development of Block 107; arrangements with rig contractor and other service providers; future development and growth prospects; and shareholder returns. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside,  prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2017 and management’s discussion and analysis for the three and nine months ended September 30, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: Estimates of production and cost of production included in this press release are based upon an independent assessment completed by Netherland Sewell & Associates, Inc., a qualified independent reserves evaluator as defined in Canadian Securities Administrators’ National Instrument 51‑101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), with an effective date of June 30, 2018 and prepared in accordance with the Canadian Oil and Gas Evaluation Handbook and the standards established by NI 51-101.

This press release contains metrics commonly used in the oil and natural gas industry. These terms have been calculated by management and do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare PetroTal’s operations over time. All oil and gas disclosure contained in this press release complies with the requirements of NI 51-101.

References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary. 

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about PetroTal’s prospective results of operations, production, operating costs and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

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.


First Day of Dealing on AIM

PetroTal Corp.

(“PetroTal” or the “Company”)

First Day of Dealings on AIM

  • Near term production growth and high impact exploration
  • Focused on accelerating Bretaña oil development
  • Debt free balance sheet and a focus on capital discipline

Calgary, Alberta and Houston, Texas24 December 2018 — PetroTal Corp. (TSX-V: TAL; AIM: PTAL), the Peru focused exploration and production company, is pleased to announce that admission to trading of its common shares on the AIM Market of the London Stock Exchange ("AIM") will commence today at 8:00 a.m. (London time) under the ticker symbol PTAL.

The Company's common shares will continue to trade on the TSX Venture Exchange ("TSXV").  For the purposes of the Disclosure Guidance and Transparency Rules, the total number of voting rights in the Company will be 452,963,288. 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.

PetroTal, the only exclusively Peru focused oil producing company listed in London, has successfully completed admission to AIM, alongside its current listing on the TSX Venture Exchange, in order to take advantage of AIM's liquidity, as well as to access a broader range of institutional investors. The Board believes that this will help expedite unlocking the value of PetroTal’s Peruvian assets as it enters a phase of significant development at its Bretaña assets, aimed at materially increasing production.

Manolo Zuniga, President and Chief Executive Officer, commented:

“We believe the AIM market will give us access to a broader investor base as we enter a period where we are looking to significantly increase our production profile. When PetroTal completed the reverse takeover of Sterling Resources last year and listed the business in Canada, we set forth on a path to put Bretaña on production, and begin growing production in Peru in a material way. With Bretaña now online and having declared commerciality, there should be no doubt about our commitment to building value for shareholders, as well as the country of Peru. We continue to maintain a disciplined approach to capital allocation and currently have approximately $25 million of cash on hand with no debt on the balance sheet, which is sufficient to allow us to maximize value and increase production in the near term. 

Since taking over operations in December 2017, we have put the Bretaña oil field online ahead of schedule, installed and commissioned facilities on time and under budget, and have mobilized a drilling rig to spud the Company’s second oil producer in February.  I would like to take this opportunity to thank our extraordinary team of experienced and hardworking professionals who have been instrumental in the Company’s achievements to date.”

Strand Hanson Limited is acting as Nominated & Financial Adviser on the admission to AIM. Numis Securities Limited and GMP FirstEnergy have been appointed to act as Joint Brokers to the Company going forward.

Please refer to the Company’s AIM Admission Document dated 21 December 2018, which is available on the Company’s website www.petrotal-corp.com, for further information on the Company.

About PetroTal

PetroTal currently has controlling interests in three Peru license blocks: Block 95, which includes the Bretaña oil field, and two exploration blocks, namely Block 107 and Block 133.

The Company has a clear and immediate focus on the development of the Bretaña oil field, where first oil was achieved in June 2018, ahead of schedule, and a full field development programme is envisaged over the next 36 months. The oil field has significant proved and probable (2P) reserves of 39.8 mmbl, based on the independent evaluation completed by Netherland Sewell & Associates, Inc. (“NSAI”) effective as of 30 June 2018.  The Company has established routes to market with current production being barged to, and sold at, the Iquitos Refinery.  Significant exploration potential also exists on this large license block and the Company will be pursuing this upside, along with prospectivity on the two other exploration licenses, namely Block 107 and Block 133. 

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9026

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

Mark Antelme / Henry Lerwill
Celicourt Communications
petrotal@celicourt.uk
T : 44 207 520 9261

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

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

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

www.petrotal-corp.com

Presentation of Oil & Gas Information

Estimates of reserves included in this press release are based upon an independent assessment completed by NSAI, a qualified independent reserves evaluator as defined in Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), with an effective date of 30 June 2018, and prepared in accordance with: (a) the Canadian Oil and Gas Evaluation Handbook and the standards established by NI 51-101; and (b) the classification and reporting requirements set forth in the 2018 Petroleum Resources Management System approved by the Society of Petroleum Engineers. For additional information about the Company’s reserves, see the Company’s press release dated 25 October 2018.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements.  More particularly and without limitation, this press release contains forward looking statements and information concerning the PetroTal’s business strategy, objectives, strength and focus, the admission to trading of the Company’s common shares on AIM, the AIM Admission Document and expectations regarding existing and future wells, drilling, production, export routes and revenue in the Bretaña oil field. Statements related to reserves are deemed to be forward-looking statements and forward-looking information as they involve the implied assessment, based on certain estimates and assumptions, that the reserves can be profitably produced in the future. Specifically, forward-looking information contained herein regarding reserves may include estimated volumes of reserves.

The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices.

Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended 31 December 2017 and management’s discussion and analysis for the three and nine months ended 30 September 2018 which are available on the System for Electronic Document Analysis and Retrieval 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, future production, balance sheet and cash flow which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about PetroTal’s anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

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.

This announcement is not an admission document, a document prepared in accordance with the Supplement to Schedule One of the AIM Rules for Companies or a prospectus. It does not constitute or form part of, and should not be construed as, an offer to sell or issue, or a solicitation of any offer to buy or subscribe for, any securities in any jurisdiction where such offering or solicitation is prohibited by law, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information in the admission document prepared in accordance with the AIM Rules for Companies (the "Admission Document") to be published by PetroTal Corp in connection with the proposed admission of the common shares in the capital of the Company (the "Common Shares") to trading on AIM, a market operated by the London Stock Exchange plc and the public documents that the Company has filed with the various securities commissions or similar authorities in each of the provinces and territories of Canada on SEDAR at www.sedar.com.  

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, JAPAN, SOUTH AFRICA, THE U.S. OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL TO DO SO. THE DISTRIBUTION OF THIS ANNOUNCEMENT IN OTHER JURISDICTIONS INCLUDING (WITHOUT LIMITATION) JAPAN, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR THE U.S. (OR TO ANY RESIDENT THEREOF) MAY BE RESTRICTED BY LAW AND THEREFORE PERSONS INTO WHOSE POSSESSION THIS ANNOUNCEMENT COMES SHOULD INFORM THEMSELVES OF AND OBSERVE ANY SUCH RESTRICTIONS. ANY FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF THE SECURITIES LAWS OF ANY SUCH JURISDICTION.


PetroTal Announces Declaration of Commerciality in Respect of the Bretaña Oil Field

Calgary, Alberta and Houston, Texas – December 13, 2018—PetroTal Corp. (“Petrotal” or the “Company”) (TSXV: TAL) an exploration and production company focused on oil assets in Peru, is pleased to announce the Company has notified Perupetro of a declaration of commerciality in respect of the Bretana oil field in Block 95, an important event for the Company as it has focused significant effort and capital to bring this area into commercial production.

The declaration of commerciality in Bretana was a result of the successful ongoing long-term testing and the stability of production. The notification allows the Company’s Peruvian subsidiary to formally record revenue and operating costs on the statement of income, rather than a capital cost reduction.

Manolo Zuniga, President and Chief Executive Officer said:

“This is yet another milestone for PetroTal and is a result of the success of our team. This is both a positive for PetroTal as well as the country of Peru. The declaration of commerciality has positive financial implications for the company, and Peru benefits from having yet another producing company in country that reduces the reliance on oil imports. We have positioned PetroTal to make an even greater impact for the country as we grow production in Peru.”

ABOUT PETROTAL

PetroTal is a publicly-traded independent oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. The Company’s management team has significant experience in developing oil fields in Northern Peru and is focused on safely and cost effectively developing and exploiting the Bretaña oil field in Block 95 and to continue to evaluate the Osheki prospect in Block 107.

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

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

http://petrotalcorp.wpengine.com

Mark Antelme / Henry Lerwill
Celicourt Communications
petrotal@celicourt.uk
T : 44 207 520 9261

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: the Company’s objectives; drilling, reactivation, water and other activities and the anticipated costs and results of such activities, including with respect to the Discovery Well; cost controls and savings; anticipated future production and revenue; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, "expect", “plan”, “estimate”, “potential”, “will”, “should”, “continue”, “may”, “objective” and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal’s geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company’s production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2017 and management’s discussion and analysis for the three and six months ended June 30, 2018 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: This press release contains metrics commonly used in the oil and natural gas industry, such as netbacks. These terms have been calculated by management and do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare PetroTal’s operations over time. All oil and gas disclosure contained in this press release complies with the requirements of NI 51-101.

References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary.

References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary.

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