PetroTal Announces Q2 2026 Financial and Operating Results
Rhea-AI Summary
PetroTal (OTCQX: PTALF) reported Q2 2026 average production of 12,557 bopd and sales of 11,969 bopd, with H1 2026 production of 13,726 bopd, about 3% above budget. Q2 Adjusted EBITDA was $43.5 million ($39.98/bbl) and Free Funds Flow was $32.4 million ($29.72/bbl). Net income was $4.8 million ($4.40/bbl), after a $10.2 million impairment tied to the Amazonia-1 rig sale, while Q2 capital expenditures totaled $8.0 million, bringing 2026 year-to-date capex to $15.6 million.
According to PetroTal, unrestricted cash reached $105.4 million within total cash of $136.9 million/b). About of Q2 sales moved via the Brazilian route. The company advanced preparations for an H2 2026 development drilling campaign at the Bretana field, with the Estrella rig in Peru and spudding targeted for October, and continued retendering its suspended erosion control project.
Positive
- Adjusted EBITDA of $43.5 million in Q2 2026 and $78.7 million in H1 2026
- Free Funds Flow of $32.4 million in Q2 2026 and $58.1 million year-to-date
- H1 2026 production 13,726 bopd, approximately 3% ahead of internal budget
- Unrestricted cash $105.4 million and total cash $136.9 million at June 30, 2026
- Lease liability of $16.9 million on Amazonia-1 rig retired following sale
- Development drilling on Block 95 remains on track to start in October 2026
Negative
- Bretana production down about 2,300 bopd quarter-over-quarter to 12,190 bopd
- Net income only $4.8 million in Q2 2026 after $10.2 million impairment charge
- Market capitalization decreased to $292.2 million from $362.9 million in Q1 2026
- Hedging program fair value negative $2.2 million as of June 30, 2026
- Erosion control project construction largely suspended; contractor retendering still in progress
News Explained
PetroTal has started well work and committed to eight wells, but the October drilling target remains unstarted and conditional on project progress.
The Q2 report records that PetroTal has commenced a Bretana well-maintenance campaign and has contracted an eight-well drilling campaign, so operating commitments are now underway while drilling itself remains pending.
The pulling campaign is classified as operating expenditure and covers production tubing and potentially electric-submersible-pump replacements in up to five wells; the drilling campaign remains targeted to begin in
Project progress is concrete but incomplete: the L2E platform was
The erosion-control project remains largely suspended, with updated contractor bids expected by the end of
As of
AI-generated analysis. How Rhea-AI works. Not financial advice.
Calgary, Alberta and Houston, Texas--(Newsfile Corp. - August 6, 2026) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") 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
"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 | $/bbl | $/bbl | $/bbl | |||||
| Average Production (bopd) | 12,557 | 14,907 | 13,726 | 22,153 | ||||
| Average Sales (bopd) | 11,969 | 14,350 | 13,153 | 21,924 | ||||
| Total Sales (bbls)1 | 1,089,145 | 1,291,473 | 2,380,617 | 3,968,316 | ||||
| Average Brent Price | ||||||||
| Contracted Sales Price, Gross | ||||||||
| Tariffs, Fees and Differentials | ||||||||
| Realized Sales Price, Net | ||||||||
| Oil Revenue | ||||||||
| Royalties2 | ||||||||
| Operating Expenses | ||||||||
| Direct Transportation | ||||||||
| Diluent | ||||||||
| Barging | - | - | - | - | ||||
| Diesel | ||||||||
| Storage | ||||||||
| Total Transportation | - | - | - | - | ||||
| Net Operating Income3,4 | ||||||||
| Erosion Control | ||||||||
| G&A | ||||||||
| EBITDA | ||||||||
| Adjusted EBITDA3,5 | ||||||||
| Net Income | ||||||||
| Basic Shares Outstanding ('000) | 920,328 | 920,328 | 920,328 | 913,808 | ||||
| Market Capitalization6 | ||||||||
| Net Income/Share ($/sh) | ||||||||
| Capex | ||||||||
| Free Funds Flow3,7 | ||||||||
| Total Cash8 | ||||||||
| Available Cash | ||||||||
- Approximately
99% of Q2 2026 sales were through the Brazilian route vs90% in Q2 2025. - Royalties include the impact of the
2.5% community social trust. - 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.
- Net operating income represents revenues less royalties, operating expenses, and direct transportation.
- Adjusted EBITDA is net operating income less general and administrative ("G&A") and plus/minus realized derivative impacts.
- 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. - Free funds flow is defined as adjusted EBITDA less capital expenditures. See "Selected Financial Measures" section.
- 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
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
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
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
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) (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
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308325