PetroTal Provides Bretana Operations Update

Rhea-AI Summary

PetroTal Corp. (OTCQX: PTALF) reported operational challenges at its Bretana field, with four wells currently shut-in due to production tubing leaks. The company's Q3 2025 group production averaged 18,805 bopd, including 16,750 bopd in early September, showing a decline from previous levels.

Despite these setbacks, PetroTal maintains its 2025 production guidance of 20,000-21,000 bopd, as year-to-date production through September 15 averaged 21,135 bopd. The company plans to mobilize a service rig to Bretana by October's end, with affected wells expected to resume production in mid-November. The impact on 2025 annual average production is estimated at less than 1,000 bopd.

Positive

• Year-to-date production remains strong at 21,135 bopd average
• Current production significantly higher than September 2024's 10,333 bopd
• 2025 production guidance of 20,000-21,000 bopd maintained despite challenges

Negative

• Four producing wells currently shut-in due to tubing leaks
• Q3 2025 production declined to 16,750 bopd in early September
• Remote location delays equipment mobilization and well repairs
• Technical issues causing production reliability problems throughout 2025

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - September 22, 2025) - PetroTal Corp. (TSX: TAL) (AIM: PTAL) (OTCQX: PTALF) ("PetroTal" or the "Company") provides the following operational update.

Key Highlights

• Bretana output temporarily impacted by technical issues, with four wells currently shut-in due to leaks in production tubing.

• Group production has averaged 18,805 bopd to date in Q3 2025, including 16,750 bopd in the first two weeks of September.

• PetroTal is moving a service rig to Bretana by the end of October, with shut-in wells expected to return to production from mid-November.

• Impact of curtailments on 2025 annual average production is currently expected to be below 1,000 bopd. As a result, there is no change to production guidance at this time.

Production Update

As of September 15, 2025, PetroTal's group production averaged 18,805 barrels of oil per day (bopd) in Q3 2025, including approximately 18,325 bopd from the Bretana field and 479 bopd from the Los Angeles field. While recent Bretana production remains substantially higher than last September's average of 10,333 bopd, technical issues have contributed to a decline in field production since mid-August. PetroTal's total production during the first two weeks of September averaged approximately 16,750 bopd.

As disclosed previously, PetroTal experienced pump failures in four producing wells at the Bretana field from December 2024 to February 2025. The pumps were successfully replaced by mid-July 2025, briefly pushing the Company's production over 21,000 bopd. However, during the course of its investigation into the pump failures, PetroTal discovered leaks in the production tubing in six wells. Leaks in production tubing reduce the efficiency of artificial lift systems, and PetroTal has had to shut-in four producing wells until the tubing can be replaced.

PetroTal is moving to replace the production tubing as quickly as possible. The Company plans to complete its ongoing workover campaign at Block 131 by the end of September, at which point the service rig will be mobilized by river barge back to Bretana. Pulling operations to replace production tubing are expected to begin by the end of October, with oil production expected to return throughout the month of November.

At present, the impact of the well failures on PetroTal's 2025 annual average production, following the completion of the well intervention program as described above, is estimated to amount to less than 1,000 bopd. As of September 15, PetroTal has produced approximately 5.47 million barrels of oil year-to-date in 2025, which equates to an average of 21,135 bopd. As a result, there is currently no change to PetroTal's 2025 average daily production guidance of 20,000-21,000 bopd. PetroTal plans to provide additional updates on the well intervention campaign with its next regular quarterly operations update in early October, and with its Q3 2025 financial results in mid-November.

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

"While we are disappointed to have experienced some production reliability issues at Bretana in 2025, I would like to assure our shareholders that we are working to address these matters as quickly as possible. Our assets are located in a remote environment, and unfortunately it takes time to mobilize equipment to the field. As ever, we constantly evaluate our operational planning and procedures and will continue to assess possible long-term solutions for well services that would allow us to respond to production interruptions in a more expedient manner."

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 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 its portfolio of assets. 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 / Jimmy Lea
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 / 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 2025 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 achievement 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, 2024 and the management's discussion and analysis for the three months ended March 31, 2025 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 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/267327

FAQ

What caused the production decline at PetroTal's Bretana field in Q3 2025?

The decline was caused by leaks in production tubing in six wells, forcing PetroTal to shut-in four producing wells until the tubing can be replaced.

When will PetroTal's shut-in wells return to production?

The shut-in wells are expected to return to production from mid-November 2025, after the service rig completes tubing replacement operations starting in late October.

How much oil has PetroTal produced year-to-date in 2025?

PetroTal has produced approximately 5.47 million barrels of oil year-to-date in 2025, averaging 21,135 bopd through September 15.

What is PetroTal's current production guidance for 2025?

PetroTal maintains its 2025 production guidance of 20,000-21,000 bopd, as the impact of well failures is expected to be less than 1,000 bopd on annual average production.

How has PetroTal's production changed compared to last year?

Despite current challenges, Bretana's production remains substantially higher than last September's average of 10,333 bopd.