REG - PetroTal Corp. - Q4 2025 Operations Update & Appointment of COO

PetrotalAnnouncement

13/01/2026 07:00

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RNS Number : 6375O  PetroTal Corp.  13 January 2026

 

PetroTal Announces Q4 2025 Operations and Financial Updates, and Appointment
of Chief Operating Officer

 

 

Calgary, AB and Houston, TX - January 13, 2026 - 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 15,258 barrels of oil per day ("bopd") in Q4 2025,
    and 19,473 bopd in FY 2025;
 -  Total cash of $139.1 million as of December 31, 2025, of which $112.4 million
    is unrestricted;
 -  Appointment of Mr. Jorge Osorio as Chief Operating Officer, effective January
    12, 2026.

 

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

"As we discussed on our Q3 2025 earnings call in mid-November, the entire
PetroTal team is working hard to restore shut-in production and cash flow as
we manage a period of weakness in oil pricing. I am pleased to report that
recent wells have responded positively to production tubing replacements, and
our current corporate production is in line with the November 2025 forecast as
we begin the new year.

I would also like to welcome Jorge Osorio as PetroTal's new Chief Operating
Officer. Jorge has a strong track record operating major heavy oil projects in
Colombia, including several with significant associated water production. He
will be a tremendous asset to the Company as we kick off the next phase of
PetroTal's development. We remain confident in our ability to deliver
sustainable production growth and look forward to providing additional details
on PetroTal's development program when we release 2026 guidance later this
month."

Q4 2025 Production and Operations Update

PetroTal's group production averaged 15,258 bopd in Q4 2025, including 14,766
bopd from the Bretana field (Block 95; PetroTal 100% WI) and 492 bopd from the
Los Angeles field (Block 131; PetroTal 100% WI). Cumulative annual production
through December 31 amounted to just over 7.1 million barrels, an increase of
approximately 9.2% compared to 2024. PetroTal's annual average production was
19,473 bopd in 2025.

As disclosed previously, the Bretana field has been producing below capacity
since mid-August 2025, due to leaks in production tubing which necessitated
the shut-in of five producing wells. PetroTal mobilized a service rig to
Bretana in the first week of October 2025, and as of January 7, 2026 has
successfully replaced the production tubing in six wells. Group production
during the first week of January 2026 has averaged approximately 15,600 bopd,
essentially flat to November 2025 levels, and in line with the indicative 2026
production forecast published with PetroTal's Q3 2025 financial results on
November 13, 2025.

In mid-December, the Bretana field reached an important milestone when
cumulative production passed 30 million barrels. At the time of PetroTal's
recapitalization in late 2017, the Bretana field was estimated to hold proven
reserves of 16.9 million barrels, and 2P reserves of 37.5 million barrels; as
of year-end 2024, PetroTal's 1P reserves had increased to 67 million barrels,
while its 2P reserves were estimated at 114 million barrels. PetroTal's
management team remains confident in the future potential of the field, as it
prepares to ramp up the next phase of development over the 2026-28 timeframe.

Cash and Liquidity Update

PetroTal ended Q4 2025 with a total cash position of $139.1 million, of which
approximately $112.4 million was unrestricted. This compares to unrestricted
cash of $108.8 million at the end of Q3 2025 and $102.8 million at the end of
2024. Of the approximately $26.7 million that PetroTal carried as Restricted
Cash on December 31 2025, approximately $19.2 million was related to the
escrow account of the COFIDE/BanBif loan.

As of December 31, PetroTal's unaudited trade and other payables and trade
receivables were approximately $60.4 million and $62.1 million, respectively
(versus comparable values of $59.0 million and $66.9 million as of September
30, 2025, respectively).

PetroTal did not initiate any new production hedges during Q4 2025. As of
January 7, the Company maintains hedges on approximately 0.2 million barrels
over the period from January 1, 2026, through March 30, 2026. Consistent with
prior disclosure, the costless collars have a Brent floor price of $65.00/bbl
and a ceiling of $80.50/bbl, with a cap of $100.50/bbl. As of January 7,
PetroTal's production hedges had a fair value of approximately $0.8 million.

Appointment of Chief Operating Officer

Effective January 12, 2026, Mr. Jorge Osorio joined PetroTal Corp as Chief
Operating Officer. In this role, Mr. Osorio oversees all major aspects of the
Company's operations and strategic execution, with responsibility for field
operations, engineering, production, and drilling.

Mr. Osorio brings 37 years of executive leadership experience in the upstream
oil and gas industry, having held senior operational and project leadership
roles at Ecopetrol and BP. As Vice President of Upstream at Ecopetrol, Mr.
Osorio managed a portfolio delivering 730,000 bopd, overseeing approximately
$4-5 billion in annual capex and $2-3 billion in opex. Under his leadership,
Ecopetrol achieved its highest production since 2016, significant EBITDA
growth, and industry-leading safety metrics. He developed and led initiatives
that accelerated field development, optimized reserves progression, and
reduced greenhouse gas emissions, earning UN Gold Standard OGMP 2.0
recognition. Previously, Mr. Osorio held key roles in BP's Asia Pacific and
Atlantic LNG operations, where he successfully implemented best practices in
operational readiness, safety, and integrity.

Mr. Osorio is widely recognized for translating his deep technical expertise
and strategic vision into measurable results. His strong operational
discipline, and collaborative leadership approach have consistently driven
performance, accelerated growth, and delivered superior returns across complex
portfolios.

 

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 Bretana 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 the Bretana oil field. It is actively building new
initiatives to champion community sensitive energy production, benefiting all
stakeholders. For further information, please see the Company's website at
www.petrotal-corp.com, the Company's filed documents at www.sedarplus.ca, 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 / David McKeown / 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 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 achievements 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 September 30, 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 and
2026 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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