PetroTal Announces Third Quarter Financial Results and Provides Operations Update

Calgary, Alberta and Houston, Texas – November 29, 2018—PetroTal Corp. (“Petrotal” or the “Company”) (TSXV: TAL) is pleased to provide a summary of its financial and operating results as of September 30, 2018.

Selected financial and operational information is outlined below and should be read in conjunction with the Company’s unaudited consolidated financial statements (“Financial Statements”) and management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2018, which are available on SEDAR at www.sedar.com and the Company’s website at www.petrotalcorp.wpengine.com. All figures referred to in this press release are denominated in U.S. dollars.

2018 THIRD QUARTER HIGHLIGHTS

  • Produced approximately 72,000 barrels of oil (“Bbls”) during the third quarter and over 135,000 Bbls to date

  • Recorded revenue and net income of $4.1 million and $0.5 million, respectively, in first period of revenue recognition in the Company’s nine month history, significantly ahead of schedule

OPERATIONS UPDATE

The Company placed the Bretaña oil field online at approximately 1,000 barrels of oil per day (“BOPD”) during the initial testing and commissioning phase. In the third-quarter, production averaged 757 BOPD. To date, the well has accumulated approximately 135,000 Bbls and the Company has been able to increase production as of November 8, 2018 to approximately 2,000 BOPD. The Company expects to average between 1,250 and 1,450 BOPD for the quarter ending December 31, 2018.

Current facilities are designed to manage approximately 6,000 BOPD and 10,000 barrels of formation water per day. The discovery well is also producing aquifer water, as expected, at current rates of approximately 3,000 barrels of water per day for a total fluid production of approximately 5,000 barrels per day. The Company has in place and operating water injection pumps and a water disposal well which was drilled by the previous operator.

In addition, the Company has completed refurbishment and construction on the existing drilling pad and is now able to drill additional wells in 2019 without causing material interruptions to production. Mobilization of a drilling rig has commenced and, once fully tested, will be taken to Bretaña to begin drilling the Company’s second oil well. The expected spud date is February 2019 with first production expected in late March 2019. This second oil well will be drilled down to the Chonta Formation to comply with the current exploration commitment and investigate the potential for light oil. It will be completed as an oil producer at the top of the target Vivian Formation. The Company has received a drilling permit to drill a follow up oil well at Bretaña which would be the Company’s third oil producer. The Company has also received an extension for the ongoing long-term testing at Bretaña until May 31, 2019 providing the Company sufficient time to obtain approval of the already submitted full field development EIA study.

During the quarter, the Company executed an initial oil sales contract with PetroPeru, Peru’s state oil company and owner of the Iquitos refinery, pursuant to which the Company is entitled to sell up to 1,000 BOPD to the refinery during the initial long-term testing phase. The Company successfully negotiated a discount equivalent to 14 percent from Brent; however, the Company does not pay pipeline tariffs during the contract term, as all oil is barged directly to the refinery. The crude oil is currently picked up at the Bretaña field and transported to the refinery by PetroPeru. Crude oil produced in excess of the contracted 1,000 BOPD is being sent to the Iquitos refinery as well as to the Conchan refinery near Lima, also owned by PetroPeru, with less diluent for evaluation under separate agreements. The Company believes the use of the refinery in Lima, as well as other nearby markets, is key to establishing new and competitive markets for its crude oil.

Manolo Zuniga, President and Chief Executive Officer stated:

“Our team continues to deliver positive operational results and we are pleased with the initial well test and early production results thus far. Strong realized oil prices for the September quarter of over $61.00 per barrel plus our ability to barge directly to the refinery, which saves on pipeline tariffs, provides key cash to the Company at this stage. First revenue and first net income are all key milestones for PetroTal and have been achieved ahead of schedule. We continue to monitor oil prices, however we remain fully funded to drill our second oil producer in the first quarter of 2019. As mentioned above, we have begun to mobilize the rig to Bretaña to continue development of the oil field. We will enter 2019 with ample cash to drill the follow up well and grow production with no current debt on the balance sheet. Our initiative to list on the London Stock Exchange’s AIM market is ongoing and we continue to investigate that opportunity.”

FINANCIAL HIGHLIGHTS

The following table summarizes key financial highlights associated with the Company’s financial performance.

Three Months Ended September 30

Three Months Ended June 30

($US thousands)

2018

2017

2018

2017

Revenues

4,144

- - -

Expenses

3,637

-

1,400

-

Net income (loss)

507

-

(1,400)

-

Total assets

91,322

-

98,918

-

Total liabilites

11,655

-

19,819

-

Shareholders' equity

79,667

-

79,099

-

ABOUT BRETAÑA FIELD

Oil in the Bretaña field was first discovered in the 1970’s and was subsequently re-discovered by Gran Tierra Energy Inc. (“Gran Tierra”). Several wells have been drilled to delineate the field and recent seismic has de-risked the structure. The rediscovery well drilled by Gran Tierra in 2014 tested 18.5 degrees API oil from the Vivian formation. The Northern oil fields in Peru have produced over one billion barrels of oil, mostly from the Vivian formation. The Company acquired the assets in Peru on December 18, 2017 from Gran Tierra. The well currently under long-term testing initially tested at a rate of 3,095 BOPD of 18.5 API oil from the horizontal sidetrack in 2013. The well had been shut-in since that time until the Company put the well on production in June of this year.

ABOUT PETROTAL

PetroTal is a publicly-traded oil and gas development and production company 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 led by an experienced Board of Directors, focused on safely and cost effectively developing and exploiting the Bretaña oil field.PetroTal is a publicly-traded oil and gas development and production company 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 led by an experienced Board of Directors, 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

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.

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 Increased Production from Bretaña Field and Provides Operations Update

Calgary, Alberta and Houston, Texas – November 15, 2018—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL) is pleased to announce that it has successfully increased oil production from the Bretaña Norte discovery well (the “Discovery Well” or the “Well”) at the Bretaña field in Block 95, Peru. The Company is also pleased to provide a further update on operations at Bretaña as well as selected financial information as of September 30, 2018. All figures referred to in this press release are denominated in U.S. dollars.

OPERATIONS HIGHLIGHTS

  • Successful installation and commissioning of oil production and water handling facilities, completed on schedule and under budget

  • Production from the Discovery Well increased to over 2,000 barrels of oil per day (“BOPD”), with over 100,000 barrels of crude oil produced to date

  • Bureau Veritas’ evaluation of oil sample demonstrates lighter 19.2 degree API oil and lower viscosity

  • Mobilizing drilling rig to Bretaña with the expectation of spudding the first of a three well program in February 2019

  • Approximately $27 million in liquidity as of September 30, 2018, with no debt

PRODUCTION UPDATE

The Company initially provided guidance that the Discovery Well, which had been tested but not put on production, could commence production in 10 to 12 months from PetroTal taking over operational control of the field in late December 2017. The Company subsequently announced that, on June 1, 2018, the well was placed on production through long-term testing, allowing for the start of the well test under natural flow and the commissioning of the newly installed oil production facilities, five months earlier than anticipated. As previously announced, the Company restricted the well flow rates to avoid water production until the required water injection facilities were installed and commissioned. The first phase of water handling equipment and reinjection pumps were installed on schedule, commissioned and currently functioning to allow the well to produce 2,000 BOPD.

Manolo Zuniga, President and Chief Executive Officer of PetroTal, stated:

“The Discovery Well is producing over 2,000 barrels of oil per day. Commissioning of the water re-injection facilities was seamless and now we are engineering the next phase that will be installed in the fourth quarter of 2019, allowing us to accelerate the production ramp up.”

“Last week the team celebrated a significant milestone as the Discovery Well surpassed 100,000 barrels of crude oil production, much sooner than expected. Additionally, we sent a crude oil sample to Bureau Veritas for evaluation and we are pleased with the resulting lighter crude quality and lower viscosity. This is important for two reasons: first it should allow PetroTal to improve netbacks per barrel by using less diluent than budgeted; and secondly we will now have more reliable data when updating our reserves with our third party reserve engineers. We are currently mobilizing a rig to drill Bretaña’s second oil well, expected to spud in February and be placed on production in late March 2019.”

ABOUT PETROTAL

PetroTal is a publicly-traded 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. The Company’s management team has significant experience in developing oil fields 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
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.

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 Grant of Performance Share Units

Calgary, Alberta and Houston, Texas – October 31, 2018—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL) announces the grant of performance share units (“PSUs”) to an officer of the Company.

The Company granted 106,667 PSUs to an officer of the Company in accordance of the provisions of the Company’s PSU plan. The PSUs will vest annually over three years and each PSU will entitle the holder to acquire between zero and two common shares of the Company (“Common Shares”), subject to the achievement of performance conditions relating to the Company’s total shareholder return, net asset value and certain production and operational milestones.

Further details regarding the PSU plan are set out in the management information circular of the Company dated April 30, 2018, which is available on SEDAR at www.sedar.com.

ABOUT PETROTAL

PetroTal is a publicly-traded 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 evaluating the promising 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) 609-9026

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

http://petrotalcorp.wpengine.com/

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


Petrotal Corp. Reports Reserves and Prospective Resources in Respect of the Bretana Field as of June 30, 2018

Petrotal Corp. Reports Reserves and Prospective Resources in Respect of the Bretana Field as of June 30, 2018

Calgary, Alberta and Houston, TexasOctober 25, 2018—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL) is pleased to provide a summary of the Company’s reserves and prospective resources in the Bretaña field in Northern Peru as of June 30, 2018. Reserves and prospective resources numbers presented herein were derived from an independent assessment (the “NSAI Report”) prepared by Netherland, Sewell & Associates, Inc. (“NSAI”), a qualified reserves evaluator as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”), effective June 30, 2018. Unless otherwise noted, all figures referred to in this press release are denominated in U.S. Dollars. 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 NI 51-101.

Key Highlights for the Bretaña Field

  • Proved + probable (“2P”) reserves of 39.8 million barrels of oil
  • Proved + probable + possible (“3P”) reserves of 79.3 million barrels of oil
  • Net present value discounted ten percent (“NPV-10”) of approximately $405 million for 2P reserves and $996 million for 3P reserves

Summary of Reserves

  • The Company owns a 100% working interest in Block 95 and a 100% net revenue interest in these properties.
  • Net reserves do not include deductions for royalty expense for net oil volumes. Government royalties are included in property and mineral taxes.
  • Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves

Summary of Net Present Values of Future Net Revenue

  • Utilizes NSAI’s price forecast as of June 30, 2018 as detailed below.
  • Future net revenue is after deductions for the Company’s share of royalty burdens, capital costs, abandonment and reclamation costs and operating expenses by before consideration of any Peruvian income taxes.
  • 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. All future net revenues are estimated using forecast prices and cost assumptions. 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 are based on Brent Crude futures prices and are adjusted for quality, transportation fees and market differentials.  Crude oil benchmark reference pricing, inflation and exchange rates utilized by NSAI in the NSAI Report were NSAI’s forecasts, as at June 30, 2018 as follows:

Estimated future abandonment and reclamation costs related to a working interest have been taken into account by NSAI in determining reserves that should be attributed to a property and in determining the aggregate future net revenue therefrom, there was deducted the reasonable estimated future well abandonment and reclamation costs.  No allowance was made, however, for the abandonment of any facilities.  The forecast price and cost assumptions assume the continuance of current laws and regulations.

Future Development Costs

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


The Company expects to use a combination of internally generated cash from operations, working capital and the issuance of new equity or debt where and when it believes appropriate to fund future development costs set out in the NSAI Report.Future development costs are capital expenditures required in the future for the Company to convert proved undeveloped reserves, probable reserves and possible reserves to proved developed producing reserves.  The undiscounted development costs are $191 million for proved reserves, $303 million for proved plus probable reserves and $450 million for proved plus probable plus possible reserves (in each case based on forecast prices and costs).

Summary of Prospective Resources

Gross (100%) Prospective Oil Resources (MBBL)

  • The Company has a 100% working interest in Block 95.
  • All of the prospective resources have been classified as heavy oil with a gravity of 18.5 degrees API. There is uncertainty that it will be commercially viable to produce any portion of the resources in the event that it is discovered.
  • “Unrisked Prospective Resources” are 100% of the volumes estimated to be recoverable from the field in the event that it is discovered and developed.
  • NSAI has determined that a 36% chance of discovery is appropriate for the prospective resources based on an assessment of a number of criteria. See “Presentation of Oil and Gas Information”.
  • The volumes reported here are “risked” in the sense that they have been adjusted for chance of discovery.

Manolo Zuniga, President and Chief Executive Officer, said:

“Our updated NSAI Report firmly underpins the PetroTal investment case with an independent third party attributing proved and probable reserves at the Bretaña oil field of 39.8 million barrels.  This is in line with the numbers presented earlier this year when we announced our first reserves report. Additionally, this is an important step in the process to list on the London Stock Exchange’s AIM market.” 

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 promising 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) 609-9026

 

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

 

www.petrotalcorp.wpengine.com

Presentation of Oil and Gas Information

Prospective resources are the quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.

Estimates of prospective resources included in this press release relating to the Bretaña field are based upon the NSAI Report.

The estimates of prospective resources provided in this press release are estimates only and there is no guarantee that the estimated prospective resources will be discovered.  If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources evaluated. Not only are such prospective resources estimates based on that information which is currently available, but such estimates are also subject to uncertainties inherent in the application of judgmental factors in interpreting such information. Prospective resources should not be confused with those quantities that are associated with contingent resources or reserves due to the additional risks involved. Because of the uncertainty of commerciality and the lack of sufficient exploration drilling, the prospective resources estimated herein cannot be classified as contingent resources or reserves. The quantities that might actually be recovered, should they be discovered and developed, may differ significantly from the estimates herein.

The prospective resources estimates that are referred to herein are risked as to chance of discovery. Risks that could impact the chance of discovery include, without limitation, geological uncertainty, political and social issues, and availability of capital.

In general, the significant factors that may change the prospective resources estimates include further delineation drilling, which could change the estimates either positively or negatively, future technology improvements, which would positively affect the estimates, and additional processing capacity that could affect the volumes recoverable or type of production.  Additional facility design work, development plans, reservoir studies and delineation drilling is expected to be completed by PetroTal in accordance with its long-term resource development plan.

The following classification of prospective resources is used in the press release:

  • Low Estimate (or 1C) means there is at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
  • Best Estimate (or 2C) means there is at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
  • High Estimate (or 3C) means there is at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.

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.

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 and the proposed listing on the London Stock Exchange’s AIM market. Statements related to reserves and prospective resources 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 and prospective resources can be profitably produced in the future. Specifically, forward-looking information contained herein regarding reserves and prospective resources may include estimated volumes of reserves and prospective resources.

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 and management’s discussion and analysis for the year ended December 31, 2017 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, future production and NPV-10 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 press release is for information purposes only and is not intended to and does not constitute, or form part of, any offer or invitation to purchase, subscribe for or otherwise acquire or dispose of, or any solicitation to purchase or subscribe for or otherwise acquire or dispose of, any securities in the capital of the Company.


Intention for Secondary Quote of Common Shares with Admission to Trading on AIM

Calgary, Alberta and Houston, Texas – September 26, 2018—PetroTal Corp. (or the “Company”) (TSX-V: TAL), an exploration and production company focused on oil assets in Peru, is pleased to announce its intention to seek a secondary quotation of its common shares with their admission to trading on the London Stock Exchange’s AIM market (“AIM”), subject to preparation of the requisite documentation. The Company expects that the shares will begin trading by the end of this year.

The Company is seeking 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 the unlocking the value of PetroTal’s Peruvian assets. PetroTal would be the only exclusively Peru focused independent oil and gas company quoted in London.

Strand Hanson Limited is acting as the Company’s Nominated Adviser on the proposed admission.

The Company will hold a special meeting of shareholders on Thursday, October 25, 2018 to amend the Articles of the Company in preparation for the secondary quotation. A management information circular and related meeting materials have been mailed to the Company’s registered shareholders and filed on SEDAR at www.sedar.com .

Key Highlights:

PetroTal is increasing production from the Bretaña oil field on Block 95, as well as evaluating the Osheki prospect in Block 107.

Bretaña oil field (Block 95):

  • One of the largest undeveloped discoveries in Peru
  • First oil achieved in June 2018, ahead of schedule
  • Installation of initial Long-Term Testing Facilities to handle production of 5,000 barrels of oil per day (“bopd”) and 5,000 barrels of water per day is expected to be completed on schedule and under budget by late October, 2018
  • Average September 2018 production is ~900 barrels of oil per day (“bopd”) naturally flowing, expected to increase to over 2,000 bopd by November 2018
  • First development well to be spud in early 2019, allowing for production growth to 5,000 bopd by mid-2019 and to 10,000 bodp in early 2020.
  • Significant proved + probable (2P) reserves of 39.8 million barrels of oil, independently verified by Netherland Sewell & Associates, Inc. (“NSAI”) effective as of December 31, 2017
  • Attractive fiscal terms with an initial cash royalty of five percent, not surpassing eight percent at peak production
  • Established routes to market with current production being sold at the Iquitos Refinery

Osheki light oil prospect (Block 107):

  • Recent confirmation that Osheki prospect is estimated to hold 534 million barrels of mean prospective recoverable resources, estimated by NSAI effective as of June 30, 2018.
  • Estimate is based on a recovery factor of 30 percent of the estimated 1.78 billion barrels of mean prospective original oil in place (“OOIP”)
  • Currently in discussions with potential joint venture partners to drill Osheki
  • Further potential material upside from additional leads in Block 107

Manolo Zuniga, President and Chief Executive Officer, said:

“We are focused on realizing the value of our material oil assets in Peru. A secondary quotation on London’s AIM would hopefully increase liquidity and allow us to broaden the shareholder register, at a time when we both are rapidly moving ahead with the development of Block 95 and continuing to assess potential partners for Block 107.

“We have achieved operational milestones, ahead of schedule and under budget, including the commencement of production at Bretaña.  We have a team with track records of delivering results and creating value for shareholders.  PetroTal is in a strong financial position with no debt, and our investment case is further de-risked by a relatively simple geological story.  We are proud to be aligned with the Peruvian government as we play our part in helping the country increase production and reduce oil imports.  I am very upbeat about the future as we continue our journey to become a Peruvian focused E&P of scale, creating value from our existing assets, and over time expanding the portfolio in Peru.  We look forward to providing further updates on our progress in due course.”

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 promising 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) 609-9026

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

http://petrotalcorp.wpengine.com/

This announcement is for information purposes only and is not intended to and does not constitute, or form part of, any offer or invitation to purchase, subscribe for or otherwise acquire or dispose of, or any solicitation to purchase or subscribe for or otherwise acquire or dispose of, any securities in the capital of the Company.

PRESENTATION OF OIL AND GAS INFORMATION

Prospective resources are the quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.  Estimates of prospective resources included in this press release relating to the Osheki prospect 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 June 30, 2018, and prepared in accordance with the Canadian Oil and Gas Evaluation Handbook and the standards established by NI 51-101. For additional information about the Company’s prospective reserves, see the Company’s press release dated September 12, 2018.

This press release contains metrics commonly used in the oil and natural gas industry, such as operating netbacks (calculated on a per unit basis as oil revenues less royalties and barging, pipeline and lifting costs). 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.

The term original oil in place (OOIP) is equivalent to total petroleum initially in place (“TPIIP”). TPIIP, as defined in the Canadian Oil and Gas Evaluation Handbook, is that quantity of petroleum that is estimated to exist in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered. A portion of the TPIIP is considered undiscovered and there is no certainty that any portion of such undiscovered resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of such undiscovered resources. With respect to the portion of the TPIIP that is considered discovered resources, there is no certainty that it will be commercially viable to produce any portion of such discovered resources. A significant portion of the estimated volumes of TPIIP will never be recovered.

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, the intention to pursue a secondary listing on the AIM market and hold a special meeting of shareholders in relation thereto, intention of engaging joint venture partners to drill the Osheki prospect, expectations regarding existing and future wells, drilling and production in the Bretaña oil field and the timing thereof.  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 and management’s discussion and analysis for the year ended December 31, 2017 and the MD&A which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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 and operating netbacks, 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 Grant of Performance Share Units and Deferred Share Units

Calgary, Alberta and Houston, Texas – September 14, 2018—PetroTal Corp. (or the “Company”) (TSX-V: TAL) announces the grant of performance share units (“PSUs”) and deferred share units (“DSUs”) to certain officers and directors of the Company.

The Company granted an aggregate of 3,901,666 PSUs to certain officers of the Company in accordance of the provisions of the Company’s PSU plan. The PSUs will vest annually over three years and each PSU will entitle the holder to acquire between zero and two common shares of the Company (“Common Shares”), subject to the achievement of performance conditions relating to the Company’s total shareholder return, net asset value and certain production and operational milestones.

The Company also issued an aggregate of 650,000 DSUs pursuant to the Company’s DSU plan to the independent directors of the Company. The DSUs vest immediately and may only be redeemed upon a holder ceasing to be a director of PetroTal. No Common Shares will be issued under the DSU plan; all DSUs granted are settled in cash.

Further details regarding the PSU plan and the DSU plan are set out in the management information circular of the Company dated April 30, 2018, which is available on SEDAR at www.sedar.com.

ABOUT PETROTAL

PetroTal is a publicly-traded 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 led by an independent Board of Directors, 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@petrotalcorp.wpengine.com
T: (713) 609-9026

Manolo Zuniga
President and Chief Executive Officer
mzuniga@petrotalcorp.wpengine.com
T: (713) 609-9101

http://petrotalcorp.wpengine.com/

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 534 Million Barrels of Unrisked Mean Prospective Resources for the Osheki Prospect

Calgary, Alberta and Houston, Texas – September 12, 2018—PetroTal Corp. (or the “Company”) (TSX-V: TAL), a Peru focused exploration and production company, is pleased to provide a summary of the results of an independent evaluation of the prospective resources with respect to the Osheki prospect in Block 107, located in the Ucayali Basin of eastern Peru.

Osheki Resource Upgrade

Based on an independent assessment completed by Netherland Sewell & Associates, Inc. (“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 June 30, 2018 (the “NSAI Prospective Resources Assessment”), and prepared in accordance with the Canadian Oil and Gas Evaluation Handbook and the standards established by NI 51-101, the Osheki prospect is estimated to have 534 million barrels (“MMbbl”) of mean prospective recoverable resources. This estimate is based on a recovery factor of 30 percent of the estimated 1.78 billion barrels of mean prospective original oil in place (“OOIP”), using maps generated from seismic acquired in 2007 and 2014. The mean risked prospective resources figure for the Osheki prospect is 85 MMbbl. The prospect was de-risked with a new 3D geologic model supporting Cretaceous age reservoirs with high quality Permian source rocks. Block 107 has four additional leads that, with Osheki, could contain a total of 4.58 billion barrels of recoverable resource in the high estimate case. Drilling permits for the Osheki prospect have been approved and the Company is seeking joint venture partners to drill the first exploration well by fourth quarter 2019 or early 2020.

Manolo Zuniga, President and Chief Executive Officer, stated:

“Today’s increase in prospective resources at Osheki is a milestone in the development of our asset portfolio in Peru.  It firmly endorses the quality of the Osheki prospect, which also contains further potential material upside from additional leads in Block 107.  This important development follows the Bretaña oil field successfully coming online ahead of schedule in June, with the remaining long-term testing equipment installation on schedule to allow us to increase production from the current ~1,000 bopd to over 2,000 bopd by the end of October. Bretaña has a clear path to increasing production to above 10,000 barrels of oil per day by 2020.

PetroTal is therefore at a very exciting time in its corporate development, and is well placed to capture the significant value across its balanced portfolio.”

Chuck Fetzner, Vice President of Asset Development, commented:

“In a report commissioned prior to PetroTal taking on the assets, it was estimated there was 313 MMbbl of mean recoverable prospective resource for the Osheki prospect. In NSAI’s June 30, 2018 report, the estimate has increased by more than 60 percent. When we combined the two seismic programs we were able to see closure in as many as three different horizons.  The Osheki prospect is a sub-thrust play similar to the Cusiana complex in the Llanos Foothills of Colombia.  We are currently engaging potential joint venture partners to drill the exploration prospect and expect the full data room to be open as soon as September 15, 2018.”

Peru – Osheki prospect (Block 107) (1) Unrisked Prospective Resources(2)(3)
Mean
Risk Factor(4) Risked Prospective Resources(2)(5)
Mean
Oil (MMbbl) 534 16% 85

Notes:

  1. The Company has a 100% working interest in Block 107.
  2. All of the prospective resources have been classified as light oil with a gravity of 46 degrees API. There is uncertainty that it will be commercially viable to produce any portion of the resources in the event that it is discovered.
  3. “Unrisked Prospective Resources” are 100% of the volumes estimated to be recoverable from the field in the event that it is discovered and developed.
  4. NSAI has determined that a 16% chance of discovery is appropriate for the prospective resources based on an assessment of a number of criteria. See “Presentation of Oil and Gas Information”.
  5. The volumes reported here are “risked” in the sense that they have been adjusted for chance of discovery.

ABOUT PETROTAL

PetroTal is a publicly-traded 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 led by an independent Board of Directors, focused on safely and cost effectively developing and exploiting the Bretaña oil field, as well as evaluating the Osheki prospect in Block 107 which could provide significant growth for the Company.

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

http://petrotalcorp.wpengine.com/

Presentation of Oil and Gas Information

Prospective resources are the quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.

Estimates of prospective resources included in this press release relating to the Osheki prospect are based upon the NSAI Prospective Resources Assessment.

The estimates of prospective resources provided in this press release are estimates only and there is no guarantee that the estimated prospective resources will be discovered.  If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources evaluated. Not only are such prospective resources estimates based on that information which is currently available, but such estimates are also subject to uncertainties inherent in the application of judgmental factors in interpreting such information. Prospective resources should not be confused with those quantities that are associated with contingent resources or reserves due to the additional risks involved. Because of the uncertainty of commerciality and the lack of sufficient exploration drilling, the prospective resources estimated herein cannot be classified as contingent resources or reserves. The quantities that might actually be recovered, should they be discovered and developed, may differ significantly from the estimates herein.

The prospective resources estimates that are referred to herein are risked as to chance of discovery. Risks that could impact the chance of discovery include, without limitation, geological uncertainty, political and social issues, and availability of capital.

In general, the significant factors that may change the prospective resources estimates include further delineation drilling, which could change the estimates either positively or negatively, future technology improvements, which would positively affect the estimates, and additional processing capacity that could affect the volumes recoverable or type of production.  Additional facility design work, development plans, reservoir studies and delineation drilling is expected to be completed by PetroTal in accordance with its long-term resource development plan.

The term original oil in place is equivalent to total petroleum initially in place (“TPIIP”). TPIIP, as defined in the Canadian Oil and Gas Evaluation Handbook, is that quantity of petroleum that is estimated to exist in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered. A portion of the TPIIP is considered undiscovered and there is no certainty that any portion of such undiscovered resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of such undiscovered resources. With respect to the portion of the TPIIP that is considered discovered resources, there is no certainty that it will be commercially viable to produce any portion of such discovered resources. A significant portion of the estimated volumes of TPIIP will never be recovered.

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, intention of engaging joint venture partners to drill the Osheki prospect and open a data room in relation thereto, expectations regarding existing and future wells, drilling and production in the Bretaña oil field. Statements related to prospective resources 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 prospective resources can be profitably produced in the future. Specifically, forward-looking information contained herein regarding prospective resources may include estimated volumes of prospective resources.

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.

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


PetroTal Announces Second Quarter Financial Results and Provides Operations Update

Calgary, Alberta and Houston, Texas – August 23, 2018—PetroTal Corp. (or the “Company”) (TSX-V: TAL) is pleased to provide a summary of its financial and operating results as of June 30, 2018.

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 quarter ended June 30, 2018, which are available on SEDAR at www.sedar.com and the Company’s website at www.petrotalcorp.wpengine.com. All figures referred to in this press release are denominated in U.S. dollars.

2018 SECOND QUARTER HIGHLIGHTS

  • Initiated oil production at the Bretaña field on June 1 to begin commissioning facilities
  • Produced approximately 6,300 barrels of oil (“bbls”) during commissioning phase in June
  • Produced approximately 24,700 bbls in July as expected under restricted choke
  • Installation of full water handling facilities is ahead of schedule
  • PetroTal has been qualified by Perupetro as a 100 percent working interest operator

OPERATIONS UPDATE

The Company placed the Bretaña oil field online at approximately 1,000 bbl/d during the initial testing and commissioning phase.  To date, the well has accumulated approximately 40,000 bbls with no sign of water produced from the aquifer.  The oil is being sold at the local Iquitos refinery owned by PetroPeru. As part of the testing phase, the well is currently undergoing a pressure build up test to gather reservoir data.  During this initial phase, the Company continues to produce the well under a choke that will reduce the risk of aquifer water production until water handling facilities are installed in the field.

During the testing phase, prior to Declaration of Commerciality, the company will record all production costs, royalties, and sales as part of capital expenditures. For this reason, any oil in the storage tanks will not be considered “revenues” until after the declaration of commerciality.  Since testing started, the Company has realized an average oil price of $58.16, net of transportation.

Water injection pumps have arrived at the field and are being installed. Remaining water handling facilities, such as the desalter, originally scheduled to be ready by November, are now scheduled to arrive in September and be ready for operation in late October.  Once the facilities are installed and commissioned, the well will be opened to produce at an expected rate of 2,000 and 2,500 bbl/d.

The Company plans to spud the first development well in the first quarter of 2019.  As previously reported, this well will be drilled down to the Chonta formation to evaluate its oil potential, and then horizontally sidetracked into the main Vivian formation as an oil producer. The rig used to begin drilling in Bretaña is currently drilling for another operator and will be mobilized to the Bretaña field in December to begin the drilling campaign.

Earlier this month, Perupetro presented to the Company the certificates of qualification as the 100 percent working interest operator of Blocks 95, 107 and 133.  The Supreme Decree authorizing Perupetro to execute the amended license contracts in respect of these blocks is expected by year-end 2018.

Manolo Zuniga, President and Chief Executive Officer stated “Our team continues to deliver ahead of schedule and we are pleased with the initial well test and early production thus far.  Strong realized oil prices of over $58.00 plus our ability to barge directly to the refinery, which saves on pipeline tariffs, provides key cash to the Company at this stage.”  Mr. Zuniga continued “with Perupetro providing the certificates of qualification, this sets the stage for PetroTal to grow for the foreseeable future.”

FINANCIAL HIGHLIGHTS

The following table summarizes key financial highlights associated with the Company’s financial performance for the second quarter ended June 30, 2018.

Notes:

  1. Until the Company receives a declaration of commerciality, which is expected later this year, the Company will, in accordance with International Accounting Standards Rule 16, record all production costs, royalties and sales as capital expenditures rather than revenue. Any oil held in the storage tanks will also be recorded as capital expenditures.
  2. The past year has been transformative for the Company. The transactions that were completed had a significant impact on the comparability of the Company's period over period results. See the Financial Statements and MD&A for further details.

ABOUT BRETANA FIELD

Oil in the Bretaña field was first discovered in the 1970’s and was subsequently re-discovered. Several wells have been drilled to delineate the field and recent seismic has de-risked the structure. The rediscovery well drilled in 2014 tested 18.5 degrees API oil from the Vivian formation. The Northern oil fields in Peru have produced over one billion barrels of oil, mostly from the Vivian formation. The Company acquired the assets in Peru on December 18, 2017. The Company is working to put the field on long-term test and begin production as early as Q4 2018.

ABOUT PETROTAL

PetroTal is a publicly-traded 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 led by an independent Board of Directors, 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) 609-9026
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@Petrotal-Corp.com
T : (713) 609-9101

http://petrotalcorp.wpengine.com/

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 capital program, capital budget, cash flow and proposed drilling, reactivation, water and other activities and the anticipated timing, costs and results of such activities; cost controls and savings; anticipated future production and revenue; future development and growth prospects; receipt of a declaration of commerciality.  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 and management’s discussion and analysis for the year ended December 31, 2017 and the MD&A which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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 o f operations, 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 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 First Oil From Bretana and Provides Operations Update

Calgary, Alberta and Houston, Texas – July 3, 2018—PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL) is pleased to announce that it has achieved first oil production from the Bretana Norte discovery well (the “Discovery Well” or the “well”) at the Bretana field in Block 95 in Peru. The Company is also pleased to provide further operations updates for both Bretana and Block 107. All figures referred to in this press release are denominated in U.S. dollars.

OPERATIONS HIGHLIGHTS

  • First oil production achieved in five months, significantly ahead of schedule
  • Discovery well flowed oil without stimulation
  • Well produced 100 percent oil with minimal natural gas and no formation water to date
  • Commissioning of facilities is progressing as expected and on schedule
  • Water handling facilities on schedule for commissioning in October, 2018
  • 7,000 barrels of oil produced to date through the ongoing long-term testing phase
  • Signed oil sales contract allows for strong operating netbacks to PetroTal
  • First oil sales and shipment expected in early July, 2018
  • Osheki prospect in Block 107 remapped, independent resource audit being prepared

OPERATIONS UPDATE

The Company initially provided guidance that the Discovery Well, which had been tested but not produced, could commence production in 10 to 12 months from PetroTal taking over operational control of the field in late December 2017. The Company is pleased to announce that on June 1, 2018 the well was placed on production through long-term testing, allowing for the start of the commissioning of the newly installed oil production facilities, five months earlier than anticipated. Field personnel have controlled the choke sizes of the well over the initial four weeks to carefully manage the commissioning of the facilities and to properly commission the facilities. The Discovery Well is testing oil from the Vivian formation, producing 100 percent oil with minimal natural gas and no formation water. As previously announced, the Company is restricting the well flow rates to avoid water production until the required water injection facilities are installed and commissioned in October of this year.

In addition to putting the Discovery Well on production, the Company is installing initial water handling facilities at Bretana.  The project is on schedule to begin commissioning water treatment and reinjection facilities by late October 2018.  At that time, oil production rates from the Discovery Well are anticipated to increase to between 2,000 and 2,300 barrels per day (“Bbls/d”).  The Company has also completed refurbishment and construction on the existing drilling pad and is now able to drill additional wells without causing material interruptions to production.

Manolo Zuniga, President and Chief Executive Officer of PetroTal, stated: “We are extremely pleased for having been able to achieve first production in just five months.  The well and the newly installed equipment have met expectations of field personnel and there have been no issues with achieving oil flow at sufficient rates to commission equipment.  As mentioned above, the well is being produced under a restricted choke to avoid producing water until the full facilities are installed to handle produced water in October of this year.  In the meantime, the well is expected to produce without stimulation at rates of up to 1,000 Bbls/d, depending on the planned activities and objectives of field personnel, gather well and reservoir data, and meet the requirements of the initial oil sales contract which calls for PetroTal to sell up to 1,000 Bbls/d to the Iquitos refinery.”

OIL SALES CONTRACT

The Company is pleased to announce the execution of an initial oil sales contract with PetroPeru, Peru’s state oil company and owner of the Iquitos refinery, pursuant to which the Company is entitled to sell up to 1,000 Bbls/d to the refinery during the initial long-term testing phase.  The Company successfully negotiated a discount equivalent to 14 percent from Brent; however the Company does not pay pipeline tariffs during the contract term as all oil is barged to the refinery.  Additionally, the crude oil will be picked up at the Bretana field and transported to the refinery by PetroPeru at a cost equivalent to our internal cost projections.  As a result, the Company expects to achieve strong operating netbacks.  The Company expects to deliver most of the initial oil recovered to date to the refinery in early July.  The chart below outlines the Company’s anticipated operating netbacks at certain benchmark reference prices:

The higher per unit lifting costs included above are driven by the initial lower production rates during the initial commissioning and testing phase.  The Company expects future lifting costs to approximate $11.00 per barrel (“Bbl”) once production reaches 5,000 Bbls/d.

Mr. Zuniga continued “As demonstrated, the avoidance of paying the pipeline tariff effectively reduces our cost structure, thus the negotiated 14 percent discount is beneficial for both PetroTal and PetroPeru, the owner of the Iquitos refinery.  We use a lifting cost of $21.95 per Bbl on this initial production as the early restriction on production rates affect the unit costs.  Additionally, we have yet to finalize the commissioning process, so this initial estimate could vary.  In any event, you can see that this is a robust project.”

BLOCK 107 OSHEKI PROSPECT

The Company has completed the remapping of the Osheki prospect based on all available data.  The revised maps suggest there is closure on the structure and up to three producing horizons may hold hydrocarbons.  Updated maps are available in the investor presentation on the Company’s website at www.petrotalcorp.wpengine.com.

In addition, the Company has retained Netherland, Sewell & Associates, Inc., qualified independent reserves evaluators, to prepare an initial hydrocarbons volumes assessment of the Osheki prospect.
Once this assessment is complete, the Company expects to open the Block 107 data room for prospective partners to review.

ABOUT PETROTAL

PetroTal is a publicly-traded 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 led by an independent Board of Directors that is focused on safely and cost effectively developing and exploiting the Bretana oil field.

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

 

ABOUT BRETANA FIELD

Oil in the Bretaña field was first discovered in the 1970’s and was subsequently re-discovered. Several wells have been drilled to delineate the field and recent seismic has de-risked the structure. The rediscovery well drilled in 2014 tested 18.5 degrees API oil from the Vivian formation. The Northern oil fields in Peru have produced over one billion barrels of oil, mostly from the Vivian formation. The Company acquired the assets in Peru on December 18, 2017. The Company is working to put the field on long-term test and begin production as early as Q4 2018.

ABOUT PETROTAL

PetroTal is a publicly-traded 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 led by an independent Board of Directors, 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) 609-9026
Manolo Zuniga
President and Chief Executive Officer
Mzuniga@Petrotal-Corp.com
T : (713) 609-9101

http://petrotalcorp.wpengine.com/

 

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, including resulting from sales to PetroPeru; future development and growth prospects, including identifying a joint venture partner to develop the Osheki prospect.  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, including the Refinery, 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 and management’s discussion and analysis for the year ended December 31, 2017 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 operating netbacks (calculated on a per unit basis as oil revenues less royalties and barging, pipeline and lifting costs). 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 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, operating netbacks, 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.


Sterling Resources Ltd. Announces Name Change to PetroTal Corp.

Calgary, Alberta and Houston, Texas – June 6, 2018— PetroTal Corp. (“PetroTal” or the “Company”) (TSX-V: TAL) is pleased to announce that it has changed its corporate name from “Sterling Resouces Ltd.” to “PetroTal Corp.” effective today.

Effective at the market opening on June 6, 2018, the common shares of the Company will commence trading on the TSX Venture Exchange under the Company’s new name and under the new trading symbol “TAL”.

ABOUT PETROTAL

PetroTal is a publicly-traded 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 led by an independent Board of Directors, focused on safely and cost effectively developing and exploiting the Bretana oil field.

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

http://www.sterling-resources.com/

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements. More particularly, this press release contains statements concerning changes to the listing of the Company’s common shares on the TSX Venture Exchange as a result of the name change. In addition, the use of any of the words “anticipate”, “believe”, “expect”, “plan”, “intend”, “can”, “will”, “should”, and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including but not limited to expectations and assumptions concerning the receipt of required regulatory approval. 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.

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 TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.