Q3 2023 Operations and Liquidity Update

Exit unrestricted cash liquidity of US$94 million on September 30, 2023

Calgary, AB and Houston, TX - October 16, 2023-PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) announces the following operational and corporate updates.

Q3 2023 Production

PetroTal achieved production of 10,909 barrels of oil per day ("bopd") in Q3 2023 and is currently producing around 12,500 bopd. Production was lower than our guided 13,500 bopd as it was negatively impacted by lower than expected river levels that reduced barge capacity for the Brazil route exports. On a year to date basis ending September 30, 2023, the Company has produced approximately 14,040 bopd, which is inside full year production guidance range.

Alternative Sales Route Update

The Company is pleased to announce the commencement of its pilot oil sales shipment through the OCP Ecuador pipeline ("OCP") in early November with the support of the Ecuadorian government. PetroTal plans to sell 100,000 barrels of crude into the OCP for eventual arrival at Esmeralda's port. The route involves approximately 1,000 km of river travel and approximately 115 km of trucking to the OCP terminal and will eventually generate similar netbacks to the Company's Brazil and Iquitos routes. The Company has also completed the contracting of service companies that will carry out the pilot shipment and trucking to the OCP terminal. PetroTal estimates completion of the shipment prior to the end of 2023, subject to the outcome of logistical activities that are being tested. In parallel with the OCP pilot, the Company is investigating other possible options for material sales route expansion.

Q4 and Full Year 2023 Production Guidance

River levels are lower compared to the 2022 dry season and will continue to impact October and November 2023 guided production levels. This will delay the Company's estimated production ramp up and as a result, the Company is now guiding Q4 2023 production between 14,000 and 14,500 bopd and full year 2023 guidance now near the lower range of 14,000 to 15,000 bopd assuming the river levels recover in December 2023.

Operational Update

The installation of the L2 West Platform is underway and expected to be completed near the end of October 2023. PetroTal expects to commence drilling well 16H in early November 2023 with first production estimated early in 2024.

PetroTal's other main sales route, the Northern Peruvian Pipeline ("ONP"), continues to be shut down. The Company expects that once the Talara refinery is fully commissioned and running as planned, there could be progress towards reactivation of the ONP. Additionally, PetroTal notes that Peru's Public Ministry has taken action and captured members of the criminal group named Los Crudos, that had been involved in pipe cuts that sabotaged ONP operations for the past couple of years.

Cash and Liquidity Update

PetroTal exited Q3 2023 in a strong position with approximately $94 million of unrestricted cash and $19 million of restricted cash for a total of $113 million. Restricted cash includes amounts reserved for the social trust funds to be deposited at a later date. The robust cash position supports future returns of capital to shareholders in the form of regular dividends, special dividends and share buybacks. During Q3 2023, the Company purchased 5.6 million shares at an average price of US$0.55/share pursuant to the share buyback program, and paid dividends of US$23 million (US$0.025/share) on September 15, 2023 related to Q2 2023 operations. Accounts receivable of approximately $67 million are contractually current, with accounts payable of approximately $55 million, primarily due within the next 50 days.

Q3 2023 Webcast Link for November 13, 2023

Please join the Company for its Q3 2023 webcast on November 13, 2023 at 9am CT (Houston).

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

"The Company is pushing extremely hard to meet guidance in 2023 despite a more severe dry season seen compared to last year on the Peruvian side. When river levels permit, the field is capable of producing in excess of 22,000 bopd, shipping monthly volumes to Brazil of 600,000 barrels (~20,000 bopd) and well over 60,000 barrels per month (~2,000 bopd) to Iquitos until we get our other sales initiatives commercialized. In addition, we will begin the pilot to the Ecuadorian OCP shortly, which will activate another 2,000 to 4,000 bopd of regular offtake when normalized and optimized. Subsequently, by mid 2024, we expect to activate the Yurimaguas route which could add up to 5,000 bopd of additional sales capacity.

PetroTal remains in a strong financial position. With $94 million unrestricted cash and $19 million of restricted cash, we will continue with our plans to return capital to investors via dividends and share buybacks for the foreseeable future."

Douglas Urch

Executive Vice President and Chief Financial Officer

Manolo Zuniga

President and Chief Executive Officer

PetroTal Investor Relations

Celicourt Communications

Mark Antelme / Jimmy Lea

Strand Hanson Limited (Nominated & Financial Adviser)

Ritchie Balmer / James Spinney / Robert Collins

Stifel Nicolaus Europe Limited (Joint Broker)

Callum Stewart / Simon Mensley / Ashton Clanfield

Peel Hunt LLP (Joint Broker)

Richard Crichton / David McKeown / Georgia Langoulant

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