REG - PetroTal Corp. - Suspension of Quarterly Dividend

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RNS Number : 4020H  PetroTal Corp.  13 November 2025

 

PetroTal Announces Suspension of Quarterly Dividend

 

 

Calgary, AB and Houston, TX - November 13, 2025 - PetroTal Corp. ("PetroTal"
or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) announces that its
Board of Directors has decided to suspend the Company's regular quarterly
dividend, until further notice. All amounts herein are in United States
dollars unless stated otherwise.

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

"While PetroTal's financial and operational results remain strong, as
evidenced by the Q3 2025 results which we also published today, the Company is
facing a number of challenges as we finalize our 2026 budget. Most notably, we
continue to experience delays in the resumption of our development drilling
program, and as a result our production volumes are expected to decline
throughout H1 2026. The updated production forecast, combined with weaker oil
prices, is limiting our ability to fund both an adequate development program
and return capital to shareholders.

After considering the preliminary 2026 outlook over the past few weeks,
PetroTal's Board of Directors has made the difficult decision to suspend our
regular quarterly dividend for the time being. As a significant shareholder
myself, I would like to assure investors that this decision was not taken
lightly; we are evaluating all options to preserve liquidity, as we work to
resume our development drilling program as quickly as possible. PetroTal
intends to provide more detailed guidance in January 2026, once the
development program and associated production forecast are finalized. We thank
our shareholders for their ongoing support."

Preliminary 2026 Outlook

As disclosed with Q2 2025 results on August 7, PetroTal is actively optimizing
the long-term Bretana field development plan, to account for a variety of
factors including sustained lower oil prices, regulatory considerations, and
delays in resuming our development drilling program. At this point, PetroTal
believes the best-case timing to resume drilling at Bretana is mid-year 2026.
Given that PetroTal does not currently expect to generate any material organic
production additions in H1 2026, initial 2026 budget runs suggest corporate
production is likely to average approximately 12,000-15,000 bopd next year,
depending on the timing of the resumption of development drilling at Bretana.
PetroTal continues to refine the 2026 development plan, which remains subject
to board approval.

While the long-term outlook for the Bretana field remains strong, supported by
eight (8) and sixteen (16) booked 1Pand 2P drilling locations, respectively,
along with significant unbooked upside in the VS1 horizon, continued
development is contingent on investment in facility expansion, specifically
water handling capacity. At prevailing oil prices, and under the updated
production forecast, PetroTal believes it will be challenged to fund both
development drilling and expansion of water handling capacity internally
through cash flow, while returning capital to shareholders. As a result,
PetroTal's Board of Directors is prioritizing cash preservation, with the
expectation that available cash reserves may be drawn upon to help fund the
2026/27 development program. PetroTal intends to provide formal 2026 guidance
by the end of January 2026 and publish its annual reserve report by the end of
February 2026.

Dividend Suspension

After giving careful consideration to the 2026 outlook described above,
PetroTal's Board of Directors has elected to suspend the regular quarterly
dividend until further notice. PetroTal's Board of Directors has a
long-standing directive that the Company must maintain a minimum available
cash balance of $60 million, as insulation against production interruptions,
decreases in commodity prices, or other emergency situations. If PetroTal's
Board of Directors has a reasonable expectation that forecast development
expenditures may cause available cash to fall below $60 million within the
next four quarters, it is obliged to reduce or halt distributions to
shareholders.

PetroTal's Board of Directors would like to assure investors that the Company
remains committed to returning capital to shareholders whenever appropriate,
whether through dividends or share buybacks. Since 2023, PetroTal has returned
almost $155 million to shareholders, of which $144 million has been paid out
in dividends. The Bretana field has generated more than $400 million of free
funds flow since the beginning of 2020. PetroTal's Board of Directors is
confident this asset can continue to support a stable return of capital
program in the future, albeit at higher production volumes and commodity
prices. However, the Company must invest capital in development over the next
12-18 months to support these endeavors.

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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