REG - PetroTal Corp. - Q4 and Full Year 2025 Results

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RNS Number : 1647Y  PetroTal Corp.  26 March 2026

 

PetroTal Announces Q4 and Full Year 2025 Results

Calgary, AB and Houston, TX - March 26, 2026 - PetroTal Corp. ("PetroTal" or
the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to report its
operating and financial results for the three months and year ended December
31, 2025. All amounts herein are in United States dollars unless stated
otherwise.

Selected financial and operational information outlined above should be read
in conjunction with the Company's unaudited consolidated financial statements
and management's discussion and analysis ("MD&A") for the three months and
year ended December 31, 2025, which are available on SEDAR+ at
www.sedarplus.ca and on the Company's website at www.PetroTal‐Corp.com.

Key Highlights

 •    Average Q4 2025 sales and production of 15,059 and 15,258 barrels of oil per
      day ("bopd"), respectively;
 •    Average FY 2025 sales and production of 19,212 bopd and 19,473 bopd,
      respectively, representing increases of approximately 9% relative to FY 2024;
 •    Generated Adjusted EBITDA((1)) of $18.5 million ($13.38/bbl) in Q4 2025 and
      $166.3 million ($23.71/bbl) in FY 2025;
 •    Annual net income of $44.2 million in FY 2025, compared to $111.5 million in
      FY 2024;
 •    Development capital expenditures ("capex") of $15.3 million in Q4 2025 and
      $75.6 million in FY 2025, compared to $50.1 million in Q4 2024 and $172.1
      million in FY 2024;
 •    Annual free funds flow((1)) of $90.4 million ($12.90/bbl) in FY 2025, compared
      to $74.1 million ($11.54/bbl) in FY 2024;
 •    PetroTal paid total dividends of $0.045/share and repurchased 4.9 million
      common shares in 2025, representing approximately $44 million of total capital
      returned to shareholders (compared to $65 million in 2024) prior to pausing
      distribution programmes in mid-November 2025;
 •    Total cash increased to $139.1 million at year-end 2025, compared to $114.5
      million at year-end 2024.

(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 "Selected
Financial Measures" section.

 

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

"PetroTal reported solid financial and operational results in 2025, increasing
our production by an average of 9% over 2024, while returning $44 million to
shareholders through dividends and share buybacks. Despite substantially
weaker oil pricing in 2025, we generated $90 million of free funds flow and
ended the year with almost $140 million of cash on our balance sheet. We also
invested $20 million to advance our erosion control project, after wrapping up
our development drilling program in the first quarter of the year. Looking
ahead, we are actively evaluating plans to optimize and expand water handling
capacity at Bretana, which is key to restoring production output from wells we
have already drilled, and to accommodate new production from our upcoming
development drilling program.

To that end, I am pleased to report that our Board of Directors has made the
important step of approving a tender award to a third-party drilling
contractor, which keeps us on schedule to resume development drilling at
Bretana by October 2026, as we have previously guided. This week, we have also
made the decision to terminate our contract with the consortium that is
managing the erosion control project. The project has fallen behind schedule,
and we felt a change in management was required to complete the project in a
safe, timely and cost-effective manner.

Recent strength in oil pricing is welcome, but cost reductions and capex
optimization remain a key focus of our Board and management team in 2026. We
are continuing to target significant reductions in operating costs and
run-rate G&A expense over the course of 2026. I would like to thank
shareholders for their continued support, as well as PetroTal's Board of
Directors and the rest of the PetroTal team for their continued valuable
contributions to our success."

 

Selected Financial Highlights

                                  Three Months Ended                      Twelve Months Ended
                                  Q4-2025             Q4-2024             FY 2025             FY 2024
                                  $/bbl    $(000's)   $/bbl    $(000's)   $/bbl    $(000's)   $/bbl    $(000's)
 Average Production (bopd)                 15,258              19,142              19,473              17,785
 Average Sales (bopd)                      15,059              19,087              19,212              17,558
 Total Sales (bbls)((1))                   1,385,460           1,756,030           7,012,397           6,426,106
 Average Brent Price              $62.46              $73.42              $67.21              $78.98
 Contracted Sales Price, Gross    $62.49              $73.16              $67.75              $79.15
 Tariffs, Fees and Differentials  -$22.82             -$21.10             -$22.56             -$20.96
 Realized Sales Price, Net        $39.67              $52.06              $45.19              $58.19
 Oil Revenue                      $39.67   $54,959    $52.06   $91,421    $45.19   $316,891   $58.19   $373,940
 Royalties((2))                   $6.32    $8,759     $7.42    $13,022    $5.45    $38,237    $6.22    $39,947
 Operating Expenses               $14.35   $19,883    $7.88    $13,843    $9.19    $64,432    $6.90    $44,320
 Direct Transportation
 Diluent                          $0.00    $0         $0.14    $248       $0.00    $0         $0.77    $4,931
 Barging                          $0.48    $670       $1.94    $3,398     $0.39    $2,757     $0.96    $6,200
 Diesel                           $0.00    $0         $0.00    $0         $0.00    $0         $0.08    $520
 Storage                          $0.22    $301       $1.97    $3,452     $1.16    $8,148     $0.58    $3,697
 Total Transportation             $0.70    $971       $4.05    $7,098     $1.55    $10,905    $2.39    $15,348
 Net Operating Income((3,4))      $18.29   $25,346    $32.71   $57,458    $29.00   $203,317   $42.68   $274,325
 Erosion Control                  $2.95    $4,083     $5.45    $9,569     $1.87    $13,085    $1.57    $10,117
 G&A                              $3.52    $4,877     $4.86    $8,534     $4.21    $29,502    $5.65    $36,291
 EBITDA((3))                      $11.83   $16,386    $40.74   $71,539    $22.92   $160,730   $35.47   $227,917
 Adjusted EBITDA((3,5))           $13.38   $18,543    $22.87   $40,167    $23.71   $166,281   $36.88   $236,972
 Net Income                       -$5.61   -$7,777    $12.10   $21,242    $6.30    $44,187    $17.34   $111,450
 Basic Shares Outstanding ('000)           915,930             914,104             915,930             914,104
 Market Capitalization((6))                $256,460            $347,473            $255,633            $347,473
 Net Income/Share ($/sh)                   -$0.01              $0.02               $0.05               $0.12
 Capex                                     $15,286             $50,107             $75,638             $172,074
 Free Funds Flow((3,7))           $2.35    $3,257     -$5.93   -$10,422   $12.90   $90,431    $11.54   $74,145
 Total Cash((8))                           $139,124            $114,528            $139,124            $114,528
 Available Cash                            $112,400            $102,783            $112,400            $102,783

 

1.        Approximately 92% of 2025 sales were through the Brazilian
route vs 88% in 2024.

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
"Selected 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 Q4 2025 and Q4 2024 assume share
prices of $0.28 and $0.38 respectively on the last trading day of the period.

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

8.        Includes restricted cash balances.

 

 

Additional financial and operational updates during and subsequent to the
quarter ending December 31, 2025:

Operations Update

As of March 23, PetroTal's group production averaged approximately 15,000 bopd
YTD in 2026, including 14,550 bopd from Block 95 (Bretana) and 450 bopd from
Block 131 (Los Angeles). The Bretana field continues to produce in-line with
the expectations laid out in PetroTal's 2026 annual guidance, published on
January 20, 2026. Field production remains constrained by water reinjection
capacity, which currently stands at approximately 170,000 bwpd. During the
first week of March 2026, PetroTal was producing oil from a total of fifteen
(15) horizontal wells, while five (5) horizontal wells remained shut-in due to
water handling constraints. PetroTal's operations team is actively reviewing
Bretana's facilities configuration with a view to raising both oil production
and water reinjection capacity as soon as possible.

PetroTal's top operational priority is the resumption of development drilling
at Bretana. To that end, PetroTal's Board of Directors has approved a tender
award to a third-party drilling contractor. The Company is currently
negotiating final contract terms and expects to begin the process of importing
a drilling rig to Peru in Q2 2026. Current expectations are for the next
Bretana development well to spud by October 2026, in-line with prior
disclosure. PetroTal will continue to provide updates on the status of its
development drilling program as necessary.

Erosion Control Project

PetroTal expensed $13.1 million and capitalized $7.7 million for erosion
control in 2025, bringing total cumulative investment in the project to $31.1
million as of YE 2025. Given that execution of the project has fallen behind
schedule, PetroTal has notified the erosion control construction consortium of
its intent to terminate the project contract and has initiated a procurement
process to secure new contractors to complete the project. The Company is
currently soliciting bids and expects to award a new construction contract by
the end of May 2026, at which time it will be in a better position to provide
updated estimates on the total project cost and expected completion date.

Approval of Modified Environmental Impact Assessment for Block 95

On March 18, 2026, Peru's National Environmental Certification Service for
Sustainable Investments (Senace) approved the Modification of the Detailed
Environmental Impact Study (MEIA-d) for the expansion of the Bretaña Norte
oil field at Block 95. MEIA approval is a critical milestone enabling the
Company to proceed with its planned development drilling program at Bretana
later this year. The field development plan approved within the MEIA covers
the drilling of up to 23 additional production wells and 5 additional
injection wells, supporting potential oil production of up to 50,000 bopd and
approximately 800,000 barrels per day of water handling capacity.

Cash and Liquidity Update

PetroTal ended Q4 2025 with a total cash position of $139.1 million, of which
$112.4 million was unrestricted. The Company's cash position was essentially
flat relative to the prior quarter but has increased by approximately $25
million compared to the same period in 2024, largely due to proceeds from the
BanBif/COFIDE loan which is being used to finance the erosion control project.

Since December 31, 2025, PetroTal executed hedges on 1.5 million barrels of
forward oil production through March 2027, covering approximately 24% of
estimated 2026 production volumes. These hedges consist of costless collars
with a Brent floor price of $60.00/bbl and a ceiling of $73.00/bbl, and a cap
of $93.00/bbl. As of March 24, 2026, the hedges have a mark to market value of
negative $10.4 million.

Q4 2025 Webcast Link for March 26, 2026

PetroTal's management team will host a webcast to discuss Q4 2025 results on
March 26, 2026 at 9am CT (Houston) and 2pm GMT (London). Please see the link
below to register.

https://brrmedia.news/PTAL_Q4_25 (https://brrmedia.news/PTAL_Q4_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 the Bretaña 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

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 drilling, completions and other
activities; the ability of the Company to access alternate export routes,
including the Oleoducto Norperuano, and the consistent reliability of those
options; the timing of filing the Annual Information Form. In addition,
statements relating to expected production, reserves, 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 described can be profitably produced in the future. 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, 2025 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 (http://www.petrotal-corp.com/) or under the Company's
profile on www.sedarplus.ca (https://www.sedarplus.ca/home/) . 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, 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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