REG - PetroTal Corp. - 2025 Year-End Oil Reserves

PetrotalAnnouncement

25/02/2026 07:00

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RNS Number : 2501U  PetroTal Corp.  25 February 2026

PetroTal Announces 2025 Year-End Oil Reserves

 

 

Calgary, AB and Houston, TX - February 25, 2026 - PetroTal Corp. ("PetroTal"
or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to
announce the results of its 2025 year-end reserve evaluation (the "NSAI
Report") by Netherland, Sewell & Associates, Inc. ("NSAI"). All currency
amounts are in United States dollars unless otherwise stated.

Key Highlights:

 •    Proved ("1P") and Proved and Probable ("2P") reserves of 66.4 million barrels
      of oil ("mmbbls") and 110.2 mmbbls, respectively, approximately unchanged YoY;
 •    Replaced 106% and 76% of Bretaña 1P and 2P reserves, respectively, after the
      field produced 6.9 mmbbls in 2025;
 •    PDP and 1P after-tax reserve value per share (PV10AT) estimated at $0.48/sh
      (C$0.66, or £0.36) and $0.75/sh (C$1.03, or £0.56) respectively;
 •    Changes to PV10AT relative to YE24 are primarily due to a substantial
      reduction in forecast oil price assumptions, as well as higher development
      capital assumptions associated with the incorporation of additional production
      and water disposal wells in the Bretaña field development plan;
 •    PDP and 1P reserve life index ("RLI") estimated at 5.2 and 9.3 years,
      respectively;
 •    Bretaña 1P and 2P original oil in place ("OOIP") unchanged at 377 mmbbls and
      494 mmbbls, respectively.

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

"PetroTal's 2025 year-end reserves evaluation highlights the underlying
strength of our asset base. While we have adjusted the pace of investment in
response to lower commodity prices, the technical foundation that guides our
development of the Bretana field remains consistent. Our independent reserves
evaluator continues to support an original 2P OOIP estimate of 494 million
barrels - unchanged from year-end 2024 and significantly higher than the 329
million barrels estimated when we began development in 2018. Bretaña remains
a large, high-quality oil resource with significant long-term potential,
justifying continued investment of capital in a proven asset.

Although 2026 requires a disciplined approach to capital allocation, the scale
of the Bretaña resource gives us flexibility as market conditions evolve. We
are focused on protecting value today while preserving the opportunity to grow
reserves over time, particularly if stronger oil prices support additional
investment. With a stable technical framework and continued independent
validation of our resource base, we remain confident in the long-term outlook
for Bretaña and its ability to deliver future reserve growth. We look forward
to the planned resumption of drilling in October 2026 and will continue to
update the market on our progress as necessary."

Summary of Year-End 2025 Reserves

The following tables summarize PetroTal's key reserves information as at
December 31, 2025, as presented in the reserves report prepared by NSAI, an
independent qualified reserves evaluator. Reserve volumes are presented on
PetroTal 100% working interest before royalty basis; in certain tables the
columns may not add due to rounding differences.

PetroTal's reserve estimates have been prepared in accordance with the
standards contained in the most recent publication of the Canadian Oil and Gas
Evaluation Handbook (the "COGEH") and the reserves definitions contained in
National Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities ("NI 51-101"). In addition to the summary information disclosed in
this announcement, more detailed information will be included in PetroTal's
annual information form for the year ended December 31, 2025 (the "AIF") to be
filed on SEDAR+ (www.sedarplus.ca) and posted on PetroTal's website
(www.petrotal-corp.com) in March 2026.

Year-End 2025 Crude Oil Reserves Summary - Gross, PetroTal 100% Working
Interest (mmbbls)

 CATEGORY                            Bretana  Los Angeles  PetroTal  PetroTal  YoY

                                     YE25     YE25         YE25      YE24      Change
 Proved
        Developed Producing          36.8     0.3          37.1      45.5      -19%
        Undeveloped                  26.6     2.7          29.3      21.6      +36%
 Total Proved                        63.4     3.0          66.4      67.1      -1%
        Probable                     42.9     0.9          43.8      46.6      -6%
 Total Proved + Probable             106.3    3.9          110.2     113.7     -3%
        Possible(1)                  74.5     0.8          75.3      99.6      -24%
 Total Proved + Probable + Possible  180.8    4.7          185.5     213.3     -13%

(1)      Possible development case assumes Block 95 contract extension to
2051; of the 74.5 mmbl included in Possible reserves at YE25, approximately
36.1 mmbbl are produced beyond the expiration of the current license contract
in 2041.

 

PetroTal did not undertake any development drilling in 2025. As a result,
reserves replacement is entirely due to revisions to the Bretaña field
development plan. At Bretaña (Block 95, PetroTal 100% working interest),
PetroTal added five (5) new production wells to the 1P development plan, and
six (6) new production wells to the 2P development plan, bringing total
development drilling inventory to 37 and 46 wells, respectively. The revised
field development plan also includes capital for 10 water disposal wells
(including conversions of two producing wells to injectors) in the 2P case, up
from 6 at YE24.

At the Los Angeles field (Block 131, PetroTal 100% working interest), 1P and
2P reserves decreased by 1.2 mmbbl and 1.9 mmbbl compared to YE24,
respectively. Declines in Los Angeles reserves volumes are the result of
revisions to the field development plan incorporating data from the 2025
workover and stimulation campaign.

Most of the change in the present value of PetroTal's reserves relative to
YE24 is attributable to a reduction in forecast oil pricing used by the
Company's reserve evaluator. To a lesser extent, the changes in present value
are also due to higher future development cost estimates linked primarily to
the incorporation of additional production and water disposal wells in the
Bretana field development plan, as well as additional capital for upgrades to
fluid handling and field infrastructure.

Year-End 2025 Net Present Value Discounted at 10% - Before Tax ($ millions)

 CATEGORY                                   YE25    YE24    Change
 Proved
         Developed Producing                $714    $1,174  -39%
         Undeveloped                        $440    $551    -20%
 Total Proved                               $1,154  $1,725  -33%
        Probable                            $823    $925    -11%
 Total Proved plus Probable                 $1,977  $2,651  -25%
        Possible                            $1,142  $1,606  -29%
 Total Proved plus Probable & Possible      $3,119  $4,257  -27%

Year-End 2025 Net Present Value Discounted at 10% - After Tax ($ millions)

 CATEGORY                                   YE25    YE24    Change
 Proved
         Developed Producing                $439    $776    -43%
         Undeveloped                        $248    $353    -30%
 Total Proved                               $687    $1,128  -39%
        Probable                            $480    $592    -19%
 Total Proved plus Probable                 $1,167  $1,720  -32%
        Possible                            $671    $1,036  -35%
 Total Proved plus Probable & Possible      $1,838  $2,756  -33%

Five Year Crude Oil Price Forecast - NSAI Report

 Year-End Forecast:                      Year 1  Year 2  Year 3  Year 4  Year 5  5 Yr Avg
 Brent (USD$/bbl) - January 1, 2026      $63.92  $69.13  $74.36  $76.10  $77.62  $72.23
 Brent (USD$/bbl) - January 1, 2025      $75.58  $78.51  $79.89  $81.82  $83.46  $79.85

 

The oil price projections used by NSAI are based upon an average of January 1,
2026 and 2025 forecasts of Brent Crude futures prices prepared by three
qualified reserves evaluators: GLJ Petroleum Consultants Ltd., McDaniel &
Associates Consultants Ltd. and Sproule Associates Limited.

Net Present Value Summary

The following tables summarize NSAI's estimates of future net revenue
attributable to the reserve categories noted below, both before and after
income taxes. It should not be assumed that the undiscounted or discounted net
present value of future net revenue attributable to reserves estimated by NSAI
represent the fair market value of those reserves.

 CATEGORY                            Future Net Revenue Before Income Taxes ($ millions)

 Discounted at:
                                     0%           5%           10%          15%          20%
 Proved
        Developed Producing          $1,015       $842         $714         $616         $542
        Undeveloped                  $963         $643         $440         $306         $214
 Total Proved                        $1,978       $1,486       $1,154       $922         $756
        Probable                     $2,060       $1,272       $823         $556         $391
 Total Proved + Probable             $4,038       $2,757       $1,977       $1,479       $1,147
        Possible                     $4,165       $2,065       $1,142       $694         $456
 Total Proved + Probable + Possible  $8,203       $4,822       $3,119       $2,173       $1,602

 

 CATEGORY                            Future Net Revenue After Income Taxes ($ millions)

 Discounted at:
                                     0%           5%           10%          15%          20%
 Proved
        Developed Producing          $670         $537         $439         $366         $311
        Undeveloped                  $615         $387         $248         $159         $101
 Total Proved                        $1,285       $924         $687         $525         $412
        Probable                     $1,326       $778         $480         $310         $208
 Total Proved + Probable             $2,610       $1,702       $1,167       $835         $621
        Possible                     $2,680       $1,270       $671         $390         $245
 Total Proved + Probable + Possible  $5,290       $2,973       $1,838       $1,225       $866

1)        The estimated tax rate is 32%.

2)        Future net revenue after income taxes includes a 5% workers
profit sharing deduction.

 

3)        These estimates are a simplification of current tax laws and
were not prepared by a tax accountant or attorney.

Year-End 2025 Reserves Value Per Share - PV10 After Tax

 CATEGORY                             YE25                     YE24
                                      US$/sh  CAD$/sh  GBP/sh  US$/sh  CAD$/sh  GBP/sh
 Proved Developed Producing           $0.48   $0.66    £0.36   $0.89   $1.22    £0.68
 Proved                               $0.75   $1.03    £0.56   $1.24   $1.78    £0.99
 Proved plus Probable                 $1.28   $1.75    £0.95   $1.89   $2.71    £1.51
 Proved plus Probable & Possible      $2.01   $2.76    £1.50   $3.02   $4.35    £2.41

The figures above represent the NPV-10 (after tax) of PetroTal's consolidated
reserves, divided by the number of common shares outstanding as of December 31
for the respective year. Canadian and GBP share prices are converted at the
respective year end foreign exchange conversion rates.  Common shares
outstanding at December 31, 2025 were 913.0 million shares and at December 31,
2024 were 911.8 million shares.

Future Development Costs

The following tables summarize future development costs deducted in the
estimation of PetroTal's future net revenue attributable to the reserve
categories noted below. Future development costs are capital expenditures
required in the future for the Company to convert proved undeveloped reserves,
probable reserves and possible reserves to proved developed producing
reserves.

The increase in future development cost estimates is primarily due to the
incorporation of additional production and water disposal wells in the
Bretaña field development plan, and additional capital for upgrades to fluid
handling and field infrastructure. The revised field development plan now
contemplates totals of 37/46 production wells in the 1P/2P cases, 9/14 water
disposal wells, and 500,000/800,000 bfpd of fluid handling capacity.

 Future development costs ($ millions)  YE25    YE24  Change
 Proved                                 $534    $192  +178%
 Proved plus Probable                   $908    $645  +41%
 Proved plus Probable & Possible        $1,153  $932  +24%

 

 Future development costs ($/bbl)     YE25   YE24   Change
 Proved                               $8.04  $2.87  +180%
 Proved plus Probable                 $8.24  $5.68  +45%
 Proved plus Probable & Possible      $6.22  $4.37  +42%

The future development costs are estimates of the future capital expenditures
required to convert the corresponding reserves to PDP reserves.  Future
development costs per bbl are determined using the future development capital
divided by the 1P, 2P, or 3P reserves.

 

Reserve Life Index

 

 

 CATEGORY                             YE25        YE24
 Proved Developed Producing           5.2 years   7.0 years
 Proved                               9.3 years   10.3 years
 Proved plus Probable                 15.5 years  17.5 years
 Proved plus Probable & Possible      26.0 years  32.9 years

 

(1)      2025 values based on 2025 year-end reserves divided by average
2025 production of 19,473 bopd.

(2)      The production license for Block 95 expires in 2041.

(3)      2024 values based on 2024 year-end reserves divided by average
2024 production of 17,785 bopd.

 

2025 Year-End Company Gross Reserves Reconciliation (mmbbls)

 

                      Proved  Proved plus Probable  Proved plus Probable & Possible
 December 31, 2024    67.1    113.7                 213.3
 Infill Drilling      0.0     0.0                   0.0
 Technical Revisions  6.4     3.6                   (20.7)
 Acquisitions         0.0     0.0                   0.0
 Production           (7.1)   (7.1)                 (7.1)
 December 31, 2025    66.4    110.2                 185.5

 

2025 Year-End Bretaña Gross Reserves Reconciliation (mmbbls)

 

                      Proved  Proved plus Probable  Proved plus Probable & Possible
 December 31, 2024    62.9    107.9                 206.6
 Infill Drilling      0.0     0.0                   0.0
 Technical Revisions  7.4     5.3                   (18.9)
 Acquisitions         0.0     0.0                   0.0
 Production           (6.9)   (6.9)                 (6.9)
 December 31, 2025    63.4    106.3                 180.8

 

 

2025 Year-End Los Angeles Gross Reserves Reconciliation (mmbbls)

 

                      Proved  Proved plus Probable  Proved plus Probable & Possible
 December 31, 2024    4.2     5.8                   6.7
 Infill Drilling      0.0     0.0                   0.0
 Technical Revisions  (1.0)   (1.7)                 (1.9)
 Acquisitions         0.0     0.0                   0.0
 Production           (0.2)   (0.2)                 (0.2)
 December 31, 2025    3.0     3.9                   4.7

 

Qualified Person's Statement

Federico Seminario, PetroTal's former Vice President of Operations and the
current Business Development Technical Expert of the Company, has approved the
technical information contained in this announcement. Mr. Seminario is a
senior geologist with more than 35 years of relevant professional experience
in the oil and gas industry. He holds a B.Sc. in Geology and a degree in
Engineering Geology from Universidad Nacional Mayor de San Marcos (CIP:
57039), a postgraduate management degree (PDG) from Universidad Austral -
Buenos Aires and has completed the academic requirements of a master's degree
in Renewable Energies at Universidad de Valencia -VIU.

The recovery and reserve estimates provided in this news release are estimates
only, and there is no guarantee that the estimated reserves will be recovered.
Actual reserves may eventually prove to be greater than, or less than, the
estimates provided herein.

 

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 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 (http://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

UNAUDITED FINANCIAL INFORMATION: Certain financial and operating results
included in this press release, including production information, total cash,
accounts payable and accounts receivable, are based on unaudited estimated
results. These estimated results are subject to change upon completion of the
Company's audited financial statements for the year ended December 31, 2025,
and changes could be material.

 

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, 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 (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, 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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