REG - PetroTal Corp. - Q3 2025 Operations and Financial Updates

PetrotalAnnouncement

14/10/2025 07:00

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RNS Number : 1896D  PetroTal Corp.  14 October 2025

PetroTal Announces Q3 2025 Operations and Financial Updates

 

Calgary, AB and Houston, TX - October 14, 2025 - PetroTal Corp. ("PetroTal" or
the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to provide
the following operational and financial updates. All amounts are in US dollars
unless stated otherwise.

Key Highlights

 -  Group production averaged 18,414 barrels of oil per day ("bopd") in Q3 2025, a
    21% increase over Q3 2024;
 -  2025 YTD production has averaged 20,894 bopd, also a 21% increase over the
    first nine months of 2024;
 -  Paid a regular quarterly dividend of $0.015 per share on September 12,
    bringing YTD returns of capital to shareholders to approximately $45 million;
 -  Total cash of $141.5 million as of September 30, 2025, of which $108.8 million
    is unrestricted.

 

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

"PetroTal's preliminary Q3 results show that the Company continues to deliver
steady YoY production growth, even though the Bretana field has been producing
below capacity for a substantial portion of the third quarter. I am confident
that our technical team has addressed the root cause of the previously
disclosed leaks in our production tubing and am pleased to report that a
service rig is already back on site, preparing to replace the faulty tubing.
We look forward to providing additional updates on our development program
with the release of our full Q3 2025 financials on November 13."

 

Q3 2025 Production and Operations Update

PetroTal's group production averaged 18,414 bopd in Q3 2025, including 17,938
bopd from the Bretana field (Block 95; PetroTal 100% WI) and 476 bopd from the
Los Angeles field (Block 131; PetroTal 100% WI). Bretana field production
decreased by approximately 2,600 bopd relative to the prior quarter but
increased approximately 2,800 bopd relative to the same period last year.
Meanwhile, Los Angeles field production declined by approximately 50 bopd
compared to Q2 2025. PetroTal's cumulative annual production through September
30 amounted to just over 5.7 million barrels, approximately 21% higher than
the first nine months of 2024.

As disclosed previously on September 22, 2025, the Bretana field has been
producing below capacity since mid-August, due to leaks in production tubing
which have necessitated the shut-in of five producing wells. As a result,
corporate production during the first ten days of October has averaged
approximately 16,000 bopd. Responding to the production downtime, PetroTal
mobilized a service rig from Block 131 to Bretana in the first week of October
and will begin a pulling campaign to restore production from shut-in wells by
the end of the month. The Company will also proactively replace electric
submersible pumps in several wells, as a preventative measure to mitigate
against potential future downtime. Bretana field production is expected to
ramp up throughout the months of November and December as the shut-in wells
are returned to production. At this point, there is no change to PetroTal's
2025 annual average production guidance of 20,000-21,000 bopd, most recently
updated with Q2 2025 results on August 7.

Also at Bretana, the erosion control project is well underway. PetroTal's
contracted construction consortium has installed a jackup rig in front of the
village of Bretana, where it is currently engaged in piling operations for the
first of five breakwaters. PetroTal is also finalizing preparations to import
its owned drilling rig to Peru during the first quarter of 2026, with
development drilling operations expected to resume at Bretana in Q2 2026.

At the Los Angeles field, PetroTal executed a workover campaign during the
month of September. The Company is currently evaluating the results and will
provide additional updates on the future course of action as necessary.

Cash and Liquidity Update

PetroTal ended Q3 2025 with a total cash position of $141.5 million, of which
approximately $108.8 million was unrestricted. This compares to unrestricted
cash of $99.3 million at the end of Q2 2025 and $121 million at the same time
last year. Of the approximately $32.7 million that PetroTal carried as
Restricted Cash on September 30, approximately $25.2 million was related to
the escrow account of the COFIDE loan, as previously announced on May 12,
2025.

As of September 30, PetroTal's unaudited accounts payable and receivable were
approximately $51.9 million and $56.6 million, respectively (vs. comparable
values of $57 million and $66 million as of June 30, 2025, respectively).

PetroTal did not initiate any new production hedges during Q3 2025. As of
October 7, the Company maintains hedges on approximately 1 million barrels
over the period from October 1, 2025 to March 30, 2026. Consistent with prior
disclosure, the costless collars have a Brent floor price of $65.00/bbl and a
ceiling of $82.50/bbl, with a cap of $102.50/bbl. As of October 7, PetroTal's
production hedges had a present value of approximately $3.2 million.

Corporate Presentation Update

The Company has updated its Corporate Presentation, available for download or
viewing at www.petrotalcorp.com (http://www.petrotalcorp.com) .

Q3 2025 Webcast on Thursday November 13, 2025

PetroTal's management team will host a webcast to discuss its Q3 2025 Results
on Thursday November 13, 2025 at 9:00am CT (Houston) and 3:00pm BST (London).
Please see the link below to register.

https://brrmedia.news/PTAL_Q3_2025 (https://brrmedia.news/PTAL_Q3_2025)

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSX: TAL, AIM: PTAL and OTCQX:
PTALF) oil and gas development and production Company domiciled in Calgary,
Alberta, focused on the development of oil assets in Peru. PetroTal's flagship
asset is its 100% working interest in the Bretaña Norte oil field in Peru's
Block 95, where oil production was initiated in June 2018. In early 2022,
PetroTal became the largest crude oil producer in Peru. The Company's
management team has significant experience in developing and exploring for oil
in Peru and is led by a Board of Directors that is focused on safely and cost
effectively developing its portfolio of assets. It is actively building new
initiatives to champion community sensitive energy production, benefiting all
stakeholders. For further information, please see the Company's website at
www.petrotal-corp.com (http://www.petrotal-corp.com) , the Company's filed
documents at www.sedarplus.ca (https://www.sedarplus.ca/landingpage/) , or
below:

 

Camilo McAllister

Executive Vice President and Chief Financial Officer

Cmcallister@PetroTal-Corp.com

T: (713) 253-4997

 

Manolo Zuniga

President and Chief Executive Officer

Mzuniga@PetroTal-Corp.com

T: (713) 609-9101

 

PetroTal Investor Relations

InvestorRelations@PetroTal-Corp.com

 

Celicourt Communications

Mark Antelme / Charles Denley-Myerson

petrotal@celicourt.uk

T : +44 (0) 20 7770 6424

 

Strand Hanson Limited (Nominated & Financial Adviser)

Ritchie Balmer / James Spinney / Edward Foulkes

T: +44 (0) 207 409 3494

 

Stifel Nicolaus Europe Limited (Joint Broker)

Callum Stewart / Simon Mensley / Ashton Clanfield

T: +44 (0) 20 7710 7600

 

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

 

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release contains certain statements
that may be deemed to be forward-looking statements. Such statements relate to
possible future events, including, but not limited to: oil production levels
and production capacity; PetroTal's 2025 development program for drilling,
completions and other activities, including Block 131 and Bretana; plans and
expectations with respect to the erosion control project; and PetroTal's
expectations with respect to dividends and share buybacks. All statements
other than statements of historical fact may be forward-looking statements.
Forward-looking statements are often, but not always, identified by the use of
words such as "anticipate", "believe", "expect", "plan", "estimate",
"potential", "will", "should", "continue", "may", "objective", "intend" and
similar expressions. The forward-looking statements provided in this press
release are based on management's current belief, based on currently available
information, as to the outcome and timing of future events. The
forward-looking statements are based on certain key expectations and
assumptions made by the Company, including, but not limited to, expectations
and assumptions concerning the ability of existing infrastructure to deliver
production and the anticipated capital expenditures associated therewith, the
ability to obtain and maintain necessary permits and licenses, the ability of
government groups to effectively achieve objectives in respect of reducing
social conflict and collaborating towards continued investment in the energy
sector, reservoir characteristics, recovery factor, exploration upside,
prevailing commodity prices and the actual prices received for PetroTal's
products, including pursuant to hedging arrangements, the availability and
performance of drilling rigs, facilities, pipelines, other oilfield services
and skilled labour, royalty regimes and exchange rates, the impact of
inflation on costs, the application of regulatory and licensing requirements,
the accuracy of PetroTal's geological interpretation of its drilling and land
opportunities, current legislation, receipt of required regulatory approval,
the success of future drilling and development activities, the performance of
new wells, future river water levels, the Company's growth strategy, general
economic conditions and availability of required equipment and services.
PetroTal cautions that forward-looking statements relating to PetroTal are
subject to all of the risks, uncertainties and other factors, which may cause
the actual results, performance, capital expenditures or achievements of the
Company to differ materially from anticipated future results, performance,
capital expenditures or achievement expressed or implied by such
forward-looking statements. Factors that could cause actual results to differ
materially from those set forth in the forward-looking statements 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), business performance, legal and
legislative developments including changes in tax laws and 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, credit ratings and risks,  fluctuations in interest
rates and currency values, changes in the financial landscape both
domestically and abroad, including volatility in the stock market and
financial system, wars (including Russia's war in Ukraine and the
Israeli-Hamas conflict), regulatory developments, commodity price volatility,
price differentials and the actual prices received for products, exchange rate
fluctuations, legal, political and economic instability in Peru, access to
transportation routes and markets for the Company's production, changes in
legislation affecting the oil and gas industry, changes in the financial
landscape both domestically and abroad (including volatility in the stock
market and financial system) and the occurrence of weather-related and other
natural catastrophes. Readers are cautioned that the foregoing list of factors
is not exhaustive. Please refer to the annual information form for the year
ended December 31, 2024 and the management's discussion and analysis for the
three months ended March 31, 2025 for additional risk factors relating to
PetroTal, which can be accessed either on PetroTal's website at
www.petrotal-corp.com or under the Company's profile on www.sedarplus.ca. The
forward-looking statements contained in this press release are made as of the
date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by applicable
securities laws.

 

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or
sales in this press release mean "heavy crude oil" as defined in National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI
51-101").

 

SHORT TERM RESULTS: References in this press release to peak rates, initial
production rates, current production rates, 30-day 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 of PetroTal. The Company cautions that
such 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 production results, 2025
drilling program and budget, well investment payback, cash position, liquidity
and components thereof, all of which are subject to the same assumptions, risk
factors, limitations and qualifications as set forth in the above paragraphs.
FOFI contained in this press release was approved by management as of the date
of this press release and was included for the purpose of providing further
information about PetroTal's anticipated future business operations. PetroTal
and its management believe that FOFI has been prepared on a reasonable basis,
reflecting management's best estimates and judgments, and represent, to the
best of management's knowledge and opinion, the Company's expected course of
action. However, because this information is highly subjective, it should not
be relied on as necessarily indicative of future results. PetroTal disclaims
any intention or obligation to update or revise any FOFI contained in this
press release, whether as a result of new information, future events or
otherwise, unless required pursuant to applicable law. Readers are cautioned
that the FOFI contained in this press release should not be used for purposes
other than for which it is disclosed herein. All FOFI contained in this press
release complies with the requirements of Canadian securities legislation,
including NI 51-101. Changes in forecast commodity prices, differences in the
timing of capital expenditures, and variances in average production estimates
can have a significant impact on the key performance measures included in
PetroTal's guidance. The Company's actual results may differ materially from
these estimates.

 

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