PetroTal Corp. (PTAL.L) Q3 2021 Operations and Liquidity Update

Calgary, AB and Houston, TX – October 13, 2021- PetroTal Corp. (“PetroTal” or the “Company”) (TSXV: TAL, AIM: PTAL and OTC: PTALF) announces an operation and liquidity update for Q3 2021, and updates on the ongoing community protests at pump station 5. All amounts herein are in United States dollars (“USD”) unless otherwise stated.

Highlights:

· Q3 2021 production averaged 9,508 barrels of oil per day (“bopd”), within 2% of previous guidance;

· Q3 2021 exit production (last 7 day average in quarter) was 15,131 bopd, an increase of 89% over Q2 2021;

· October 1 to October 11, 2021, average production of 14,218 bopd;

· Well 8H has achieved payout in under 40 days on its $11.8 million capital cost, with continued robust average production of 7,485 bopd in Q4 2021 to date;

· Well 7D continues to deliver strong production above 1,300 bopd, having achieved two times payout to date;

· Well 9H drilling continues without delays, with first oil estimated in mid November 2021;

· Water disposal maintenance efforts were completed and will have long term field optimization benefits;

· Brazil route to market sales option proving viable, with PetroTal executing an export of 226,000 barrels in Q3 2021;

· Strong liquidity position maintained, with total liquidity of $58 million as at September 30, 2021; and,

· PetroTal taking proactive initiatives to resolve recent pump station 5 disputes between the local community and government.

Q3 2021 Production

PetroTal averaged oil production of 9,508 bopd for Q3 2021. This was within 2% of revised Q3 2021 guidance of 9,697 and an 8% increase over Q2 2021 average production of 8,839 bopd. PetroTal exited Q3 2021 producing 15,131 bopd, an 89% increase over exit Q2 2021 production of 8,009 bopd. Q4 2021 production to date is 14,218 bopd, inclusive of approximately 5.4% of usual downtime.

Well 8H Update

Well 8H continues to perform at exceptional levels. During the first 11 days of October, 8H has averaged 7,485 bopd. As of October 11, 2021, the 8H well has produced over 290,000 barrels at an estimated $45/bbl netback and has now achieved payout on its $11.8 million capital cost.

Well 7D Update

Well 7D continues to exceed management expectations from a deviated drilling perspective. 7D is still averaging more than 1,300 bopd. Since commencement of production in early May 2021, 7D has produced approximately 400,000 barrels and has generated cash flow approximately double its capital cost since coming online five months ago.

Well 9H Update

Well 9H has reached its third week of drilling, is executing to plan, and trending slightly ahead of completion schedule with production commencement expected in the last half of November 2021.

CPF-2 On Track

The final crude processing phase for CPF-2 will be commissioned and operational by mid November 2021. It is expected to be fully operational by mid January, 2022. No additional COVID-19 delays have materially impacted the field since previously announced in late summer.

Brazil Route Proving Valuable

PetroTal executed an oil shipment through Brazil in Q3, 2021 for 226,000 barrels. PetroTal estimates it may ship two cargos via the Atlantic route in Q4 2021.

Strong Q3 2021 Exit Liquidity

At September 30, 2021, PetroTal had a cash position of approximately $58 million, of which $31 million is unrestricted, $20 million is dedicated to accretive acquisitions and $7 million is posted as collateral for commodity price hedges. The $16 million reduction in overall liquidity was due to increased spending related to the planned capex program and a net increase in accounts receivable.

At September 30, 2021, accounts receivable from current oil sales, including VAT, were $22 million, and accounts payable were approximately $37 million. Pursuant to contractual terms with suppliers, approximately $3.7 million (11%) of the accounts payable balance is due after Q4 2021. Ongoing payments will be managed from expected oil field revenues and internal cash resources. The Company maintains access to an additional $25 million from the bond issue for potential acquisitions and development drilling.

Community Protest Update

Protests at pump station 5 have shut down the Northern Peruvian Pipeline (“ONP”) and operations on October 5, 2021. Since then, PetroTal has been involved with both the government and communities to help resolve the issue peacefully.

PetroTal supports the struggle of the indigenous community and continues to promote a peaceful and long-lasting resolution in the very near future, especially given the new Government’s public commitment to all the communities of the Loreto Region where the Company operates.

In the meantime, PetroTal continues to produce at normal rates, delivering oil to Station 1 plus exports through Brazil, and expects to have sufficient oil storage to maintain operations during the disruption at Petroperu’s pipeline.

Updated Corporate Presentation. Please see PetroTal’s website for an updated version.

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

“On behalf of PetroTal, I would like to thank all our employees and contractors for another outstanding quarter. We are continuously reminded that alignment between the government, communities, and PetroTal ensures an efficient continuance of PetroTal’s value proposition. PetroTal continues to support negotiations between local communities and government social profit initiatives. We are optimistic all stakeholders will find resolutions in short order.”

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSXV: TAL, AIM: PTAL and OTC: 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 Bretana oil field in Peru’s Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the second 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.sedar.com, or below:

Douglas Urch

Executive Vice President and Chief Financial Officer

Durch@PetroTal-Corp.com

T: (713) 609-9101

Manolo Zuniga

President and Chief Executive Officer

Mzuniga@PetroTal-Corp.com

T: (713) 609-9101

PetroTal Investor Relations

InvestorRelations@PetroTal-Corp.com


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