Q2 2026 Financial and Operating Results

PetroTal Corp.

06 August 2026

PetroTal Announces Q2 2026 Financial and Operating Results

Calgary, AB and Houston, TX - August 6, 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 June 30, 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 June 30, 2026, which are available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.PetroTal‐Corp.com.

Key Highlights

•      Average Q2 2026 sales and production of 11,969 and 12,557 barrels of oil per day ("bopd"), respectively;

•      H1 2026 production averaged 13,726 bopd, tracking 3% ahead of budget expectations;

•      Adjusted EBITDA⁽¹⁾ of $43.5 million ($39.98/bbl) in Q2 2026 and $78.7 million ($33.05/bbl) in H1 2026;

•      Free Funds Flow⁽¹⁾ of $32.4 million ($29.72/bbl) in Q2 2026 and $58.1 million ($24.41/bbl) in H1 2026;

•      Net Income of $4.8 million ($4.40/bbl), net of a $10.2 million impairment charge relating to the sale of the Amazonia-1 drilling rig;

•      Capital expenditures of $8.0 million, bringing 2026 YTD capital investment to $15.6 million, and;

•      Unrestricted cash of $105.4 million, an increase of $6.1 million YoY.

(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 delivered strong second quarter results, with Adjusted EBITDA of $43.5 million and Free Funds Flow of $32.4 million reflecting stronger realized pricing and continued cost discipline. Production of 12,557 bopd tracked slightly ahead of our internal plan, putting us in good position to meet our annual production and EBITDA guidance. As part of our ongoing work program at Bretana, we recently commenced a pulling campaign to replace tubing and pumps on up to five wells, which will help mitigate forecast production declines in the second half of the year.

I am happy to report that preparations for our development drilling campaign are progressing on schedule. The Estrella drilling rig is now in Peru and we have increasing confidence that drilling will resume in accordance with our October target date. Delivery on these key project milestones reflects strong execution by our operations and drilling teams and lays the groundwork for a return to production growth in 2027. Looking ahead, we remain focused on disciplined capital allocation and advancing our drilling campaign as we work toward that objective."

Selected Financial Highlights

	Three Months Ended				Six Months Ended
	Q2-2026		Q1-2026		Q2-2026		Q2-2025
	$/bbl	$(000's)	$/bbl	$(000's)	$/bbl	$(000's)	$/bbl	$(000's)
Average Production (bopd)		12,557		14,907		13,726		22,153
Average Sales (bopd)		11,969		14,350		13,153		21,924
Total Sales (bbls)1		1,089,145		1,291,473		2,380,617		3,968,316
Average Brent Price	$90.11		$74.65		$82.46		$69.75
Contracted Sales Price, Gross	$90.36		$74.50		$81.65		$69.94
Tariffs, Fees and Differentials	$23.49		$23.43		$23.36		$22.05
Realized Sales Price, Net	$66.87		$51.07		$58.29		$47.89
Oil Revenue	$66.87	$72,827	$51.07	$65,950	$58.29	$138,776	$47.89	$190,061
Royalties2	$7.36	$8,016	$4.92	$6,351	$6.03	$14,366	$5.42	$21,515
Operating Expenses	$10.11	$11,013	$8.46	$10,928	$9.22	$21,941	$7.74	$30,715
Direct Transportation
Diluent	$0.00	$0	$0.00	$0	$0.00	$0	$0.00	$0
Barging	-$0.60	-$651	$0.48	$626	-$0.01	-$25	$0.79	$3,146
Diesel	$0.00	$0	$0.00	$0	$0.00	$0	$0.00	$0
Storage	$0.00	$0	$0.00	$0	$0.00	$0	$0.30	$1,206
Total Transportation	-$0.60	-$651	$0.48	$626	-$0.01	-$25	$1.09	$4,352
Net Operating Income3,4	$49.99	$54,449	$37.21	$48,045	$43.05	$102,494	$33.64	$133,479
Erosion Control	$0.30	$332	$3.15	$4,070	$1.85	$4,402	$0.64	$2,521
G&A	$6.29	$6,854	$6.75	$8,712	$6.54	$15,566	$4.37	$17,354
EBITDA	$31.56	$34,377	$27.34	$35,313	$29.27	$69,690	$28.63	$113,603
Adjusted EBITDA3,5	$39.98	$43,541	$27.22	$35,148	$33.05	$78,689	$29.27	$116,170
Net Income	$4.40	$4,796	$11.84	$15,297	$8.44	$20,093	$12.19	$48,367
Basic Shares Outstanding ('000)		920,328		920,328		920,328		913,808
Market Capitalization6		$292,204		$362,885		$292,204		$456,904
Net Income/Share ($/sh)		$0.01		$0.02		$0.02		$0.05
Capex		$7,967		$7,622		$15,589		$40,670
Free Funds Flow3,7	$29.72	$32,373	$19.92	$25,728	$24.41	$58,101	$18.97	$75,288
Total Cash8		$136,893		$128,327		$136,893		$142,102
Available Cash		$105,388		$104,437		$105,388		$99,313

1.        Approximately 99% of Q2 2026 sales were through the Brazilian route vs 90% in Q2 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 Q2 2026, Q1 2026 and Q2 2025 assume share prices of $0.3175, $0.3943, and $0.50 respectively on the last trading day of the quarter.

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 June 30, 2026:

Block 95 Update

PetroTal produced an average of 12,190 bopd from the Bretana field (Block 95; PetroTal 100% WI) in Q2 2026. Bretana production declined by approximately 2,300 bopd relative to the prior quarter, mainly due to natural declines and in-line with expectations. Los Angeles field production (Block 131; PetroTal 100% WI) averaged 367 bopd in Q2 2026, a decline of approximately 50 bopd compared to the prior quarter. In the first six months of 2026, PetroTal's corporate production averaged 13,726 bopd, approximately 3% ahead of budget expectations.

In mid-July, PetroTal commenced a pulling campaign at the Bretana field. The objective of the work program, which is classified as an operating expenditure, is to replace production tubing and potentially electric submersible pumps in up to five wells, with a view to improving field production deliverability in H2 2026. The cost and production downtime associated with the pulling campaign are fully contemplated in PetroTal's 2026 budget. Bretana field production averaged 11,107 bopd in July 2026. 

PetroTal continues to advance preparations for its H2 2026 development drilling campaign, which remains on track to begin in October. Construction of the L2E platform, which is being built to accommodate surface infrastructure for the new wells, was 78% complete as of July 21. The Estrella drilling rig, which PetroTal has contracted for an 8-well drilling campaign, entered Peru from Leticia, Colombia on August 4, and following a planned barge transshipment in Iquitos is expected to arrive at Bretana by the end of the month. The Company intends to notify the market when the first well has spud.

Erosion Control Project

As disclosed previously, PetroTal has largely suspended construction activities for the erosion control project, after terminating its contract with the previous construction consortium in March 2026. The Company commenced a tender process to source new contractors for the project in May 2026. That process remains ongoing, with updated bids now expected by the end of August. Once PetroTal has agreed to terms with a new contractor, it will guide the market on the cost and timeframe to project completion.

Cash and Liquidity Update

PetroTal ended Q2 2026 with a total cash position of $136.9 million, of which $105.4 million was unrestricted. This compares to $128.3 million total cash ($104.4 million unrestricted) at the end of Q1 2026. The increase in cash reflects strong operating cash flow and $13.4 million of net proceeds from the Amazonia-1 rig sale, offset by the retirement of the $16.9 million lease liability associated with the rig and routine debt service.

PetroTal did not initiate any new production hedges during Q2 2026. As at June 30, 2026, the Company's corporate hedging program consisted of four three-way collars covering approximately 1.1 million barrels through March 2027, with floor prices ranging from $55.00 to $65.00/bbl, ceiling prices from $72.10 to $73.75/bbl, and caps from $92.10 to $93.75/bbl. As of June 30, 2026, these contracts had a fair value of negative $2.2 million.

Q2 2026 Webcast Link for August 6, 2026

PetroTal's management team will host a webcast to discuss Q2 2026 results on August 6, 2026 at 9am CT (Houston) and 3pm BST (London). Please see the link below to register.

https://brrmedia.news/PTAL_Q2_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 timing of the resumption of development drilling at Bretana; the ability of the pulling campaign and associated activities to offset production declines; and the outcome of the erosion control arbitration process. 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 March 31, 2026 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, 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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