REG - PetroTal Corp. - Q2 2025 Operations and Financial Updates

PetrotalAnnouncement

14/07/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250714:nRSN8895Qa&default-theme=true

RNS Number : 8895Q  PetroTal Corp.  14 July 2025

PetroTal Announces Q2 2025 Operations and Financial Updates

 

Calgary, AB and Houston, TX - July 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 approximately 21,039 barrels of oil per day
("bopd") in Q2 2025, a 15% increase over the same period last year;

·    H1 2025 production averaged approximately 22,160 bopd, a 20% increase
over H1 2024;

·    Successfully replaced electric submersible pumps in three wells at
the Bretana field, with the one remaining pump replacement scheduled for
completion during the month of July, 2025;

·    Paid a regular quarterly dividend of $0.015 per share on June 13,
bringing YTD and cumulative returns of capital to shareholders to
approximately $30 million and $140 million, respectively;

·    Total cash of $142.1 million as of June 30, 2025, including $31.9
million held in escrow from the first tranche of the previously announced
COFIDE term loan;

 

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

"PetroTal's preliminary Q2 2025 results reflect continued strong operational
performance from our core asset base. I am pleased to report that the Bretana
field continues to produce near all-time highs, in-line with expectations. Our
operations team has already replaced three out of the four electric
submersible pumps that failed earlier this year, restoring approximately 3,300
bopd of production capacity that was previously offline.

We are continuing preparations for our Block 131 drilling program, although we
have experienced delays in the commissioning of our new drilling rig. Despite
this delay, our YTD production continues to track directly in-line with
guidance, while our capital expenditures are substantially below budget so far
in 2025. We intend to provide additional details on our remaining 2025
development program, including associated production expectations, with Q2
2025 results on August 7, 2025."

 

Q2 2025 Production and Operations Update

PetroTal's group production averaged 21,039 bopd in Q2 2025, including 20,512
bopd from the Bretana field (Block 95; PetroTal 100% WI) and 526 bopd from the
Los Angeles field (Block 131; PetroTal 100% WI). Bretana production declined
approximately 2,150 bopd relative to the prior quarter, due to a combination
of natural declines and previously disclosed pump failures in four producing
wells in Q4 2024 and Q1 2025. Three of the pumps have already been replaced,
restoring approximately 3,300 bopd of production capacity, while replacement
of the remaining pump is expected to be completed by the end of July 2025. Los
Angeles field production declined by approximately 90 bopd relative to the
prior quarter, due to planned well-logging activities which required the
shut-in of targeted wells. Once PetroTal has completed the pump replacements
at Bretana, it will move the service rig to the Los Angeles field, where a
workover program is scheduled to begin by September 2025.

PetroTal continues to advance preparations for its planned drilling program at
the Los Angeles field, aiming to have its drilling rig available once the
workover program is completed. Importantly, the Los Angeles field currently
represents less than 5% of PetroTal's corporate production, and the delay is
not expected to materially impact 2025 production guidance.

As of June 30, PetroTal's 2025 YTD capital expenditures were approximately
$40-50 million. Over the next three to six months, pump replacements at Block
95 and the workover stimulation program at Los Angeles remain on track to
support production. The Erosion Control project is also continuing as planned,
with no major changes to the expected project completion date or budget.
PetroTal will provide a comprehensive update on its 2025 development program,
including revised timelines and production expectations, with its Q2 2025
results announcement on August 7, 2025.

Cash and Liquidity Update

PetroTal ended Q2 2025 with a total cash position of $142.1 million, of which
approximately $99.3 million was unrestricted. This compares to total cash of
$113.6 million at the end of Q1 2025 and $95.8 million one year ago. As
disclosed previously on May 13, 2025, PetroTal entered into a term loan with a
syndicate of Peruvian banks in the second quarter of 2025. The first tranche
of the loan, amounting to $50 million, was drawn on May 20, 2025, to fund
ongoing expenses associated with the erosion control project. Of the
approximately $42.8 million that PetroTal carried as Restricted Cash on June
30, approximately $31.9 million was related to the escrow account of the
COFIDE loan, as previously announced on May 12, 2025.

As of June 30, PetroTal's unaudited accounts payable and receivable were
approximately $57.1 million and $65.8 million, respectively (vs. comparable
values of $60.0 million and $87.0 million as of March 31, 2025, respectively).

PetroTal maintains production hedges on approximately 35% of its forecast 2025
production volumes. 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
Monday July 7, PetroTal's production hedges had a present value of
approximately $3.5 million.

Management Appointment

Jose Contreras, who served as PetroTal's Chief Operating Officer since May
2023, departed the Company on June 13, 2025. Max Torres, previously PetroTal's
Vice President of Exploration since August 2024, has been appointed Interim
Chief Operating Officer. Mr. Torres brings over 30 years of experience in the
global oil and gas industry, including senior management roles at Repsol and
Ecopetrol. PetroTal thanks Mr. Contreras for his contributions and wishes him
well. The company has engaged an executive search firm to find a permanent
replacement for the Chief Operating Officer position.

Corporate Presentation Update

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

Q2 2025 Webcast on Thursday August 7, 2025

PetroTal's management team will host a webcast to discuss its Q2 2025 Results
on Thursday August 7, 2025 at 9:00am CT (Houston) and 3:00pm BST (London).
Please see the link below to register.

https://brrmedia.news/PTAL_Q2_25 (https://brrmedia.news/PTAL_Q2_25)

 

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 / Jimmy Lea

petrotal@celicourt.uk

T : +44 (0) 20 7770 6424

 

Strand Hanson Limited (Nominated & Financial Adviser)

Ritchie Balmer / James Spinney / Robert Collins

T: +44 (0) 207 409 3494

 

Stifel Nicolaus Europe Limited (Joint Broker)

Callum Stewart / Simon Mensley / Ashton Clanfield

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, including from pump replacements at the Bretana
field, and the workover program at the Los Angeles field; PetroTal's 2025
development program for drilling, completions and other activities, including
Block 131; 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 (http://www.petrotal-corp.com/)
or under the Company's profile on www.sedarplus.ca
(https://www.sedarplus.ca/landingpage/) . 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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFLFFRDAIVLIE