REG - PetroTal Corp. - Q3 2025 Financial and Operating Results

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RNS Number : 4019H  PetroTal Corp.  13 November 2025

 

PetroTal Announces Q3 2025 Financial and Operating Results

 

 

Calgary, AB and Houston, TX - November 13, 2025 - PetroTal Corp. ("PetroTal"
or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) reports its operating
and financial results for the period ended September 30, 2025. All amounts
herein are in United States dollars unless stated otherwise.

Selected financial and operational information outlined below should be read
in conjunction with the Company's unaudited consolidated financial statements
and management's discussion and analysis ("MD&A") for the period ended
September 30, 2025, which are available on SEDAR+ at www.sedarplus.ca and on
the Company's website at www.PetroTal‐Corp.com.

Key Highlights of Q3 2025 Financial & Operational Results

•     Average Q3 2025 sales and production of 18,028 and 18,414 barrels of
oil per day ("bopd"), respectively;

•    Generated adjusted EBITDA((1)) and free funds flow((1)) of $31.6
million ($19.03/bbl) and $12.1 million ($7.29/bbl) , respectively;

•      Capital expenditures of $19.7 million, an increase of $2.6
million compared to the prior quarter;

•      Net income of $3.6 million ($2.17/bbl), a decrease of $13.9
million compared to the prior quarter;

•     Total cash of $141.5 million, essentially flat to the prior
quarter, and an increase of $8.4 million compared to the same period last
year;

(1)      Non-GAAP (defined below) measure that does not have any
standardized meaning prescribed by GAAP and therefore may not be comparable
with the calculation of similar measures presented by other entities. See
"Non-GAAP Financial Measures" section.

 

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

"I am pleased to share that PetroTal delivered solid financial results in the
third quarter of 2025. Our production increased by 21% compared to the same
period last year, supported by healthy river exports, as we continued to
benefit from the results of our 2024 development drilling program. While we
experienced some unscheduled downtime that temporarily impacted production
capacity, our operational teams responded quickly to restore output and
sustain our sales volumes.

Looking ahead, we continue to refine our development plan as we finalize our
2026 budget. In a separate announcement today, we have confirmed that
PetroTal's Board of Directors has decided to suspend our quarterly dividend
for the time being. Although this was a difficult decision, we believe it is
prudent to preserve liquidity as we evaluate the optimal development plan for
the Bretana field. We thank our shareholders for their ongoing support and
look forward to providing additional details with our 2026 budget in January."

Selected Financial Highlights

                                  Three Months Ended
                                  Q3-2025             Q2-2025             Q3-2024
                                  $/bbl    $(000's)   $/bbl    $(000's)   $/bbl    $(000's)
 Average Production (bopd)                 18,414              21,039              15,203
 Average Sales (bopd)                      18,028              20,578              14,760
 Total Sales (bbls)((1))                   1,658,621           1,872,602           1,357,961
 Average Brent Price              $66.96              $65.55              $77.74
 Contracted Sales Price, Gross    $66.95              $65.53              $78.58
 Tariffs, Fees and Differentials  -$23.62             -$22.75             -$20.52
 Realized Sales Price, Net        $43.33              $42.78              $58.06
 Oil Revenue                      $43.33   $71,871    $42.78   $80,110    $58.06   $78,850
 Royalties((2))                   $4.80    $7,961     $4.95    $9,276     $5.47    $7,433
 Operating Expenses               $8.34    $13,834    $9.34    $17,488    $8.23    $11,176
 Direct Transportation
 Diluent                          $0.00    $0         $0.00    $0         $0.90    $1,218
 Barging                          $0.60    $1,003     $0.79    $1,482     $0.81    $1,100
 Storage                          $2.76    $4,579     $0.30    $570       $0.51    $690
 Total Transportation             $3.36    $5,582     $1.09    $2,052     $2.22    $3,008
 Net Operating Income((3,4))      $26.83   $44,494    $27.40   $51,294    $42.14   $57,233
 Erosion Control                  $3.91    $6,481     $0.38    $705       $0.40    $548
 G&A                              $4.38    $7,271     $4.15    $7,775     $6.75    $9,160
 EBITDA((3))                      $18.53   $30,741    $22.86   $42,815    $34.99   $47,526
 Adjusted EBITDA((3,5))           $19.03   $31,568    $23.66   $44,310    $36.49   $49,556
 Net Income                       $2.17    $3,599     $9.35    $17,513    $5.29    $7,179
 Basic Shares Outstanding ('000)           913,372             913,808             913,259
 Market Capitalization((6))                $383,616            $456,904            $429,231
 Net Income/Share ($/sh)                   $0.00               $0.02               $0.01
 Capex                                     $19,682             $17,064             $43,019
 Free Funds Flow((3,7))           $8.19    $12,098    $14.55   $27,246    $4.81    $6,537
 Total Cash((8))                           $141,488            $142,102            $133,072
 Available Cash                            $108,809            $99,313             $121,328

 

1.        Approximately 99% of Q3 2025 sales were through the Brazilian
route vs 90% in Q2 2025.

2.        Royalties include the impact of the 2.5% community social
trust.

3.        Non-GAAP (defined below) measure that does not have any
standardized meaning prescribed by GAAP and therefore may not be comparable
with the calculation of similar measures presented by other entities. See
"Non-GAAP Financial Measures" section.

4.        Net operating income represents revenues less royalties,
operating expenses, and direct transportation.

5.        Adjusted EBITDA is net operating income less general and
administrative ("G&A") and plus/minus realized derivative impacts.

6.        Market capitalization for Q3 2025, Q2 2025 and Q3 2024 assume
share prices of $0.42, $0.50, and $0.47 respectively on the last trading day
of the quarter.

7.        Free funds flow is defined as adjusted EBITDA less capital
expenditures. See "Non-GAAP Financial Measures" section.

8.        Includes restricted cash balances.

 

 

Additional financial and operational updates during and subsequent to the
quarter ending September 30, 2025:

Block 95 Update

PetroTal produced an average of 17,938 bopd from the Bretana field in Q3 2025,
an increase of 21% over the same period last year. As disclosed on September
22, 2025, the Bretana field has been producing below capacity since
mid-August, due to leaks in production tubing which necessitated the shut-in
of five producing wells. Responding to the production downtime, PetroTal
mobilized a service rig from Block 131 to Bretana and began a pulling campaign
to restore production from shut-in wells in late October. As of November 10,
the Company successfully replaced production tubing in one (1) well. During
the first 10 days of November, Bretana production averaged 14,983 bopd,
bringing 2025 YTD production to 6.2 mmbbls, for an average of 19,594 bopd.

Block 131 Update

Los Angeles field production averaged 476 bopd in Q3 2025, a decline of
approximately 50 bopd compared to the prior quarter. PetroTal conducted a
workover campaign at Los Angeles in September, which necessitated the shut-in
of all three producing wells at the field for approximately one week.
Following the completion of the workover campaign, Los Angeles field
production averaged approximately 560 bopd during the month of October,
compared to 479 bopd during the month of August, the last full calendar month
before the wells were shut-in. As of November 11, YTD production from Los
Angeles totaled just over 170,000 bbls, for an average of 539 bopd. PetroTal's
technical team is currently evaluating the results of the workover program,
with a view to finalizing the 2026 development plan by mid-January 2026.

Bretana Erosion Control Project

The Bretana Erosion Control Project, which PetroTal is undertaking to ensure
maximum realization of its investment in the Bretana field, continues to
proceed on schedule. PetroTal expensed $6.5 million of erosion control costs
in Q3 2025, up from $0.7 million in the prior quarter, as the main piling
barge, along with the first batch of fabricated steel components, arrived at
Bretana in mid-August. As of November 7, PetroTal is actively engaged in
construction activities on breakwaters #1 and #3, both of which are situated
in front of the village of Bretana. There are no material changes to project
cost estimates or timelines at this time; PetroTal continues to target
completion date in Q3 2026, with total project cost estimates falling within a
range of $65-75 million.

Cash and Liquidity Update

PetroTal ended Q3 2025 with a total cash position of $141.5 million, compared
to $133.1 million at the end of Q3 2024. Available cash as of September 30,
2025 amounted to $108.8 million, compared to $121.3 million at the same time
last year. The increase in total cash primarily reflects the first tranche of
the previously announced COFIDE/BanBif loan, which was drawn in Q2 2025. Of
the $32.7 million that PetroTal carried as restricted cash on September 30,
approximately $25 million was related to the escrow account of the
COFIDE/BanBif loan.

PetroTal did not initiate any new production hedges during Q3 2025 and
maintains coverage on approximately 1.0 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 November 3, PetroTal's existing
production hedges had a present value of approximately $2.1 million.

Q3 2025 Webcast Link for November 13, 2025

PetroTal's management team will host a webcast to discuss Q3 2025 results on
November 13, 2025 at 9am CT (Houston) and 3pm 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 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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