PetroTal Announces Q2 2023 Financial and Operating Results

Comunicado PetroTal

Calgary, Alberta and Houston, Texas–(Newsfile Corp. – August 8, 2023) – PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) (“PetroTal” or the “Company“) is pleased to report its operating and financial results for the three and six months ended June 30, 2023 (“Q2”).

Selected financial and operational information is outlined below and should be read in conjunction with the Company’s unaudited consolidated financial statements and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2023, which are available on SEDAR at www.sedar.com and on the Company’s website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars unless otherwise stated.

Key Selected Highlights

• Achieved record average quarterly sales of 18,483 barrels (“bbls”) of oil per day (“bopd”), up 46% from the first quarter (“Q1”) 2023;

• Produced a record 19,031 bopd in the quarter, up 56% from Q1 2023. During the quarter the Company posted 60 days with production over 20,000 bopd;

• Exited the quarter in a strong cash position with $92.6 million in total cash ($17.3 million restricted), up 29% from end of Q1 2023;

• As a result of excellent Q2 2023 performance, the Company will declare and pay in Q3 2023, a cash dividend of US$0.025 per common share, which includes the recurring US$0.015 per common share amount, plus an amount for a minimum liquidity sweep of US$0.01 per common share;

• Exported oil sales through Brazil averaged 513,000 bbls per month. In April 2023 the Company had exported oil sales of approximately 590,000 barrels, that combined with Iquitos refinery deliveries represented total realized oil sales of 630,462 bbls for the month;

• Commenced drilling well 15H on April 11, 2023, with first oil production in early June 2023, ahead of schedule. The well produced at an average of 7,920 bopd for the last 19 days in June 2023 and has averaged 7,140 bopd for the 30 day period from June 12, 2023 to July 11, 2023, prior to the start of the dry season;

• Generated significant EBITDA and Free Funds Flow of $70.0 million ($41.63/bbl) and $37.7 million ($22.41/bbl) respectively, compared to $47.9 million ($42.22/bbl) and $7.9 million ($6.96/bbl) in Q1 2023;

• Achieved Net Income in the quarter of $46.6 million (US$0.05/share) compared to $17.0 million (US$0.02) in Q1 2023; and,

• During the quarter, the Company paid a dividend of US$0.015/share and repurchased 582,708 shares representing a total of $14.7 million of capital returned to shareholders (~3.4% of June 30, 2023 market capitalization).

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

“PetroTal delivered its strongest quarter to date in Q2 2023. Underpinned by unconstrained Brazilian export sales, the Company was able to produce over 20,000 bopd for 60 days which allowed the Company to achieve records in almost all major cash flow metrics including generating over $70 million of EBITDA. In addition, our Q2 2023 operating and direct transportation cost was $5.80/bbl versus $7.70/bbl in Q1 2023, showing the benefit of larger volumes on fixed unit costs, and demonstrating how hard the team has worked to keep field costs in check, despite an inflationary environment.

The Board and Management are pleased with the additions of Mr. Jose Contreras (Senior VP Operations) and Mr. Felipe Arbelaez Hoyos (independent non-executive director). These individuals are fitting in extremely well and adding significant value to the Company.

Looking ahead to Q3 2023, the Amazon River water level is currently low near Iquitos and is consequently forecast to be low on the Brazilian side near the end of Q3 2023, leading to a lighter barge fill requirement projected for most of the quarter. As a result, the Company is reiterating its full year oil production guidance of 14,000 – 15,000 bopd. This showcases the importance of securing other oil export routes and promoting the full and consistent operation of the ONP pipeline, both of which the Company are committed to advancing.”

The full release is available here.