Q2 2026 Operations and Financial Updates
PetroTal Corp.
15 July 2026
PetroTal Announces Q2 2026 Operations and Financial Updates
Calgary, AB and Houston, TX - July 15, 2026 - PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to provide the following operational and financial updates. All amounts are in US dollars unless stated otherwise.
Key Highlights
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Group production averaged 12,557 barrels of oil per day ("bopd") in Q2 2026, and 13,726 bopd in H1 2026; |
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Sale of Amazonia-1 drilling rig for net cash proceeds of $13.4 million; |
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Total cash of $136.8 million as of June 30, 2026 ($105.3 million unrestricted), compared to $128.1 million at the end of Q1 2026. |
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"PetroTal's operational performance remained strong in the second quarter of 2026. Our production is tracking approximately 3% ahead of budget through the first half of the year, and we also completed the sale of the Amazonia-1 drilling rig at the end of the quarter. This transaction, along with a constructive commodity price environment, helped support our cash balance as we gear up for an active capital program in the second half of the year.
Beginning this month, we are undertaking pump and tubing replacement jobs on 4-5 wells at the Bretana field. This work will help improve our production deliverability over the remainder of the year and is fully accounted for within our budget guidance. We are also well advanced with final preparations for the resumption of our development drilling campaign in October, which we view as a key catalyst for the Company heading into 2027. We look forward to providing a more comprehensive operational update with our Q2 2026 financial results on August 6, 2026."
Q2 2026 Production and Operations Update
PetroTal's group production averaged 12,557 bopd in Q2 2026, including 12,190 bopd from the Bretana field (Block 95; PetroTal 100% WI) and 367 bopd from the Los Angeles field (Block 131; PetroTal 100% WI). Through the first half of 2026, PetroTal's group production has averaged 13,726 bopd, approximately 3% ahead of budget expectations.
As previously disclosed, PetroTal plans to complete pump and tubing replacement work on 4-5 wells at the Bretana field in Q3 2026. The work program will begin in July and is expected to wrap up in time for the resumption of the development drilling campaign by October 1, 2026. PetroTal reaffirms its annual production guidance of 12,000 bopd, which fully reflects the anticipated downtime associated with the workover campaign.
There are no material changes to the status of the erosion control project at this time. PetroTal remains in discussions with third-party contractors about restarting construction activities in a safe, cost-effective manner as soon as possible.
Sale of Amazonia-1 Drilling Rig
On June 30, 2026, PetroTal closed the sale of its Amazonia-1 drilling rig to an arm's-length third party for net cash proceeds of $13.4 million. In connection with the transaction, PetroTal expects to record an impairment charge of approximately $10 million in its Q2 2026 financial results.
Cash and Liquidity Update
PetroTal ended Q2 2026 with a total cash position of $136.8 million, of which approximately $105.3 million was unrestricted. This compares to unrestricted cash of $104.3 million at the end of Q1 2026 and $99.3 million at the end of Q2 2025.
As of June 30, 2026, PetroTal's unaudited short-term trade and other payables and short-term trade receivables were approximately $40.4 million and $61.2 million, respectively (versus comparable values of $51.4 million and $61.9 million as of March 31, 2026, respectively).
PetroTal did not initiate any new production hedges in Q2 2026. As at June 30, 2026 and in line with previous disclosure, the Company maintains hedges on approximately 0.7 million barrels over the remainder of 2026 and 1.1 million barrels inclusive of 2027. The costless collars have an average Brent floor price of $60.00/bbl and a ceiling of $73.00/bbl, with a cap of $93.00/bbl. As of June 30, 2026, PetroTal's production hedges had a fair value of negative $2.3 million.
Q2 2026 Webcast on 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 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, 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, 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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