REG - PetroTal Corp. - Q1 2026 Financial and Operating Results

PetrotalAnnouncement

07/05/2026 07:00

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RNS Number : 3239D  PetroTal Corp.  07 May 2026

 

PetroTal Announces Q1 2026 Financial and Operating Results

Calgary, AB and Houston, TX - May 7, 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 ended March 31, 2026. 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
ended March 31, 2026, which are available on SEDAR+ at www.sedarplus.ca and on
the Company's website at www.PetroTal‐Corp.com.

Key Highlights

 •    Average Q1 2026 sales and production of 14,350 and 14,907 barrels of oil per
      day ("bopd"), respectively;
 •    Adjusted EBITDA((1)) of $35.1 million ($27.22/bbl) represents a 90% increase
      relative to the prior quarter;
 •    Free Funds Flow((1)) of $25.7 million in Q1 2026, compared to $3.3 million in
      Q4 2025;
 •    Total cash of $128.3 million as of March 31, 2026, compared to $113.6 million
      in March 2025;
 •    2026 Adjusted EBITDA guidance range increases to $110-120 million, from $30-40
      million previously;
 •    Executed contract with third-party drilling service provider, ahead of planned
      resumption of development drilling in October 2026.

(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:

"Our first quarter results reflect a continued focus on maintaining production
at Bretana and positioning the Company for a return to growth, while also
highlighting the positive impact of improving crude oil prices. Stronger
realized pricing in March contributed to a 90% increase in Adjusted EBITDA
compared to the prior quarter, despite lower production volumes in the period.
This result demonstrates the Company's operating leverage and ability to
generate meaningful cash flow even at lower production levels.

At Bretana, we remain focused on preparing the field for its next phase of
growth. During the quarter and into April, we advanced key infrastructure
initiatives, including stimulation work on water injection wells to increase
injection capacity and help stabilize production ahead of our upcoming
drilling campaign. We are already seeing the benefit of this work, with
year-to-date sales volumes tracking slightly ahead of expectations as we
approach the midpoint of the second quarter.

In parallel, we have made good progress towards resuming our development
drilling program. We recently signed a contract with a third-party drilling
company and are advancing plans to mobilize the rig to the field, with
drilling expected to begin in October 2026. We also plan to carry out pulling
jobs in three wells in the third quarter, which we have scheduled ahead of the
resumption of our drilling campaign, to help optimize performance and reduce
the potential for production disruptions later in the year.

Looking ahead, our priorities remain clear: sustain and build production at
Bretana, execute our capital program, and position the Company to return to
growth. We believe the steps we are taking today will improve operational
reliability, support efficient capital deployment, and create long-term value
for our shareholders."

Selected Financial Highlights

                                  Three Months Ended
                                  Q1-2026             Q4-2025             Q1-2025
                                  $/bbl    $(000's)   $/bbl    $(000's)   $/bbl    $(000's)
 Average Production (bopd)                 14,907              15,258              23,281
 Average Sales (bopd)                      14,350              15,059              23,286
 Total Sales (bbls)                        1,291,473           1,385,460           2,095,714
 Average Brent Price              $74.65              $62.46              $73.96
 Contracted Sales Price, Gross    $74.50              $62.49              $73.89
 Tariffs, Fees and Differentials  -$23.43             -$22.82             -$21.43
 Realized Sales Price, Net        $51.07              $39.67              $52.46
 Oil Revenue                      $51.07   $65,950    $39.67   $54,959    $52.46   $109,951
 Royalties                        $4.92    $6,351     $6.32    $8,759     $5.84    $12,241
 Operating Expenses               $8.46    $10,928    $14.35   $19,883    $6.31    $13,227
 Direct Transportation
 Diluent                          $0.00    $0         $0.00    $0         $0.00    $0
 Barging                          $0.48    $626       $0.48    $670       $0.79    $1,664
 Diesel                           $0.00    $0         $0.00    $0         $0.00    $0
 Storage                          $0.00    $0         $0.22    $301       $0.30    $636
 Total Transportation             $0.48    $626       $0.70    $971       $1.09    $2,300
 Net Operating Income             $37.21   $48,045    $18.30   $25,346    $39.22   $82,183
 Erosion Control                  $3.15    $4,070     $2.95    $4,083     $0.87    $1,816
 G&A                              $6.75    $8,712     $3.52    $4,877     $4.57    $9,579
 EBITDA                           $27.34   $35,313    $11.83   $16,386    $33.78   $70,788
 Adjusted EBITDA                  $27.22   $35,148    $13.38   $18,543    $34.29   $71,860
 Net Income                       $11.84   $15,297    -$5.61   -$7,777    $14.72   $30,852
 Basic Shares Outstanding ('000)           920,328             915,930             915,930
 Market Capitalization                     $362,885            $256,460            $435,754
 Net Income/Share ($/sh)                   $0.01               -$0.01              $0.03
 Capex                                     $7,622              $15,286             $23,624
 Free Funds Flow                           $25,728             $3,257              $48,236
 Total Cash                                $128,327            $139,124            $113,565
 Available Cash                            $104,347            $112,400            $102,650E

 

1.        Approximately 98% of Q1 2026 sales were through the Brazilian
route vs 88% in Q4 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
"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 Q1 2026, Q4 2024 and Q1 2025 assume
share prices of $0.3943, $0.2757 and $0.4758 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 March 31, 2026:

Operations Update

PetroTal continues to advance key operational initiatives at the Bretana
field, positioning the Company to resume development drilling in October 2026.
The Company has executed a contract with a third-party drilling service
provider, whose rig is currently completing operations in Colombia. Following
demobilization, the rig is expected to be transported to Peru by road and
river, similar to prior equipment moves. Infrastructure work to position the
drilling rig, along with the electromechanical activities required to tie in
new wells to existing facilities, is progressing as planned. The operations
team is also preparing to facilitate the rapid connection of the new wells,
optimizing early production rates.

In April 2026, PetroTal conducted stimulation work on three of the four water
injection wells at the Bretana field. The program was designed to increase
formation water disposal capacity from the first quarter 2026 average of
approximately 170,000 barrels of water per day ("bwpd"), to help support oil
production ahead of the resumption of development drilling later this year.
Bretana field production averaged approximately 12,850 bopd in April,
reflecting brief, planned shut-ins of producing wells during the stimulation
work. Since completing the program, production has increased, averaging
approximately 13,050 bopd in the first week of May, while water injection
capacity has risen to just over 180,000 bwpd.

In Q3 2026, PetroTal plans to carry out pulling jobs in three producing wells
at Bretana, in keeping with expectations outlined in the Company's 2026 budget
guidance. This work is being advanced ahead of the planned restart of
development drilling later this year.

Erosion Control Project

PetroTal expensed $4.1 million for erosion control in Q1 2026, consistent with
the prior quarter, bringing total cumulative investment in the project to
$36.8 million as of March 31, 2026. As disclosed previously, PetroTal
terminated the erosion control project contract with the prior construction
consortium in March 2026 and has initiated a procurement process to secure new
contractors to complete the project. The tender process is underway and
PetroTal expects to award a new contract by the end of June 2026. The Company
will provide additional updates on the erosion control project as necessary.

Cash and Liquidity Update

PetroTal ended Q1 2026 with a total cash position of $128.1 million, of which
$104.2 million was unrestricted. This compares to total cash of $139.1 million
at the end of Q4 2025 and $113.6 million at the end of Q1 2025. The decrease
in cash relative to the prior quarter is primarily due to the settlement of
annual cash taxes, which amounted to approximately $10 million in Q1 2026.
PetroTal's trade receivables increased by $23.4 million relative to the prior
quarter, as the Company benefited from stronger realized pricing in the month
of March.

PetroTal has not initiated any new production hedges since the end of March
2026. In line with previous disclosure, the Company maintains hedges on
approximately 0.9 million barrels over the remainder of 2026. The costless
collars have an average Brent floor price of $60.00/bbl and a ceiling of
$80.50/bbl, with a cap of $100.50/bbl. As of April 21, PetroTal's production
hedges had a fair value of negative $11 million.

Guidance Update

PetroTal's original 2026 guidance, released on January 20, 2026, was based on
an assumed annual Brent oil price of $60.00/bbl and contemplated Adjusted
EBITDA of $30-40 million for the full year. Supported by an average dated
Brent oil price of $74.65/bbl during the first quarter of 2026, the Company
generated approximately that level of Adjusted EBITDA during Q1 alone.

Incorporating first quarter actual results and updating the forecast for
recent Brent strip pricing, PetroTal now expects to generate Adjusted EBITDA
of approximately $110-120 million for full-year 2026.

This updated guidance is driven solely by changes in the Company's oil price
assumptions. PetroTal is not currently anticipating any material changes to
its previously disclosed production outlook, major operating cost assumptions,
or 2026 capital expenditure budget.

Corporate Presentation Update

The Company has updated its Corporate Presentation, available for download or
viewing at https://petrotalcorp.com/investors/Q1 2026

Webcast Link for May 7, 2026

PetroTal's management team will host a webcast to discuss Q1 2026 results on
May 7, 2026 at 9:00am CT (Houston) and 3:00pm BST (London). Please see the
link below to register.

https://brrmedia.news/PTAL_Q1_26 (https://brrmedia.news/PTAL_Q1_26)

 

 

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 December 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, 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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