Strategic Acquisition of Block 131 in Peru

Recoverable reserve estimates up to 4.9 million bbls

Significant upside potential from deeper reservoirs

Calgary, AB and Houston, TX - May 8 2024 - PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to announce the execution of a definitive agreement (the "Acquisition Agreement") to acquire a 100% working interest in Peru's Block 131, including the producing Los Angeles field, through the acquisition of CEPSA Peruana, S.A.C. ("CEPSA Peru"), which represents the entire Peruvian business unit of Compania Española de Petroleos S.A.U. ("CEPSA"), for a purchase price of approximately $5.0 million in cash, subject to adjustment as set forth in the Acquisition Agreement (the "Acquisition").

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

"This is PetroTal's first acquisition since entering Peru in late 2017. This transaction marks an important step forward in delivering on our ongoing growth vision. The assets being acquired are synergistic, highly accretive to the Company's current operations and we have immediate plans for development once the transaction is complete. All production from the assets is directed to the Iquitos refinery.

Completion of this acquisition will add approximately 900 bopd to our current 18,500 bopd of Bretana production, with the potential for further upside in the near to medium term. Furthermore, our operational team is assessing the potential upside in the deeper zones of the Los Angeles field, that were previously penetrated but were not tested. Finally, the location of Block 131 is of strategic importance, as it is connected by a 130km highway to the Company's Block 107 prospect. We look forward to announcing further updates on this acquisition process in due course."

The assets to be acquired, pursuant to the Acquisition, (the "Assets") are currently producing approximately 900 barrels of oil per day ("bopd") from four wells previously drilled into the Cretaceous aged Cushabatay sand at the Los Angeles field. With strong aquifer support, these wells are producing with a low base decline profile, high recovery factor, and at a 40-45º API oil quality. The Company's expectation is for near term development and production growth from this block.

Strategic Rationale

Management and the Board of PetroTal believe the Acquisition provides the following strategic attributes:

• Low-cost light oil reserve additions with upside potential.

o Recoverable reserves estimated between 3.0 and 4.9 million barrels of oil ("bbls");

• Iquitos Refinery capacity synergies. Block 131's light oil production will allow PetroTal to increase the sales capacity of heavier Bretana crude through Iquitos and allow more oil to be sold in dry river conditions; and,
• Netback enhancements. From the combined lighter oil mix sold to Iquitos, lower Brent differentials can potentially be realized.

Operational Strategy

PetroTal's management team have identified three near term low risk operational initiatives at Block 131:

• Identification of bypassed oil for low risk horizontal well locations drilled high on structure;
• Potential use of hydraulic pumps (vs ESPs) and optimized tubing to reduce operating costs; and,
• Implementation of an operationally straightforward solution to lower chemical costs from treating asphaltene.

Asset Background

Discovered in 2013, CEPSA Peru's assets include the Los Angeles oil field on Block 131 (100% working interest), which are all located onshore Peru. At March 31, 2024 the assets have produced a total of approximately 7.6 million barrels. The assets are held under a concession agreement expiring in 2037 and are subject to a 23.9% royalty rate at field production levels under 5,000 bopd with a similar scaling factor as Block 95 above 5,000 bopd. All the crude oil produced is sold to Petroperu, the State-owned oil company, and transported by barge along the Ucayali River, passing by PetroTal's Bretana oil field, to the refinery in Iquitos.

The Acquisition

Completion of the Acquisition is subject to the satisfaction of certain conditions, including, but not limited to, required regulatory approvals. Closing will occur following the satisfaction of such conditions. The effective date of the Acquisition will be January 1, 2024.

Evercore Group LLC is acting as the exclusive financial advisor to PetroTal with respect to the Acquisition.

Stikeman Elliott LLP is acting as legal counsel to PetroTal with respect to the Acquisition.

Q1 2024 results webcast link for May 9, 2024

PetroTal will host a webcast for its Q1 2024 results and to discuss the Cepsa acquisition on May 9, 2024 at 9am CT (Houston) and 3pm BST (London). Please see the link below to register.

Camilo McAllister

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

READER ADVISORIES

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") in respect of the Company and the Assets, including prospective results of operations and production and components thereof, including pro forma the completion of the Acquisition, 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 document was approved by management as of the date of this document and was provided for the purpose of providing further information about PetroTal's 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 document, 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 document should not be used for purposes other than for which it is disclosed herein. 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.

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "light crude oil" as defined in NI 51-101. All references to Brent indicate Intercontinental Exchange Brent.

RESERVES DISCLOSURE. All reserves values and ancillary information contained in this press release relating to Assets are derived from the are derived from an independent assessment of reserves attributable to the Assets, which was completed by Netherland Sewell and Associates Inc. ("NSAI"), a qualified independent reserves evaluator as defined in Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), with an effective date of March 31, 2024 (the "Reserves Report"), and prepared in accordance with the most recent publication of the Canadian Oil and Gas Evaluation Handbook ("COGEH") and the standards established by NI 51-101. Estimates of reserves for individual properties may not reflect the same level of confidence as estimates of reserves for all properties, due to the effect of aggregation. There is no assurance that the forecast price and cost assumptions applied by NSAI in evaluating PetroTal' reserves will be attained and variances could be material.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. Proved developed producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g., when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves category (proved, probable, possible) to which they are assigned. Certain terms used in this press release but not defined are defined in NI 51-101, CSA Staff Notice 51-324 - Revised Glossary to NI 51-101, Revised Glossary to NI 51-101, Standards of Disclosure for Oil and Gas Activities ("CSA Staff Notice 51-324") and/or the COGEH and, unless the context otherwise requires, shall have the same meanings herein as in NI 51-101, CSA Staff Notice 51-324 and the COGEH, as the case may be.