2025 Guidance

Calgary, AB and Houston, TX - January 16, 2025-PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to provide the following 2025 guidance update. All amounts are in US dollars unless stated otherwise.

2025 Guidance

• Target average 2025 production and sales of 21,000 - 23,000 barrels of oil per day ("bopd"), a ~24% increase on 2024
• Capital investment of $140 million, a decrease of approximately 14% on 2024
• Target annual EBITDA of $240 - 250 million at $75.00 Brent, net of $30 million expensed for non-recurring erosion control, a 6% increase on 2024
• Total of four development wells, down from seven in 2024
• Fully funded quarterly dividend of $0.015/share, consistent with 2024

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

"PetroTal is well positioned to build on the operational momentum that we established in 2024. We are firmly committed to a consistent return of capital policy, while maximizing the value of the Bretana oil field. We are one of very few companies in the oil and gas sector that can support a stable dividend while growing output by more than 20% year after year.

In addition to our active development programs at both the Bretana and Los Angeles fields, PetroTal is also expanding its exploration activities in the Ucayali Basin, where we recently secured an extension to our Block 107 license contract, and signed two new TEA's adjacent to Block 131. Lastly, our budget also includes erosion protection measures for our key producing asset, a project that should be completed by the second quarter of 2026.

I would like to thank all of our stakeholders for their continued support. The PetroTal team has set ambitious goals for 2025, and we look forward to delivering for investors over the next twelve months."

2025 Guidance Overview

PetroTal's Board of Directors has approved a 2025 capital budget of $140 million, a decrease of approximately 14% compared to 2024. Key components of the capital program include:

• $55 million for drilling and workover activities, assuming a total of four development wells at the Bretana and Los Angeles oil fields
• $60 million for field infrastructure at Bretana, including upgrades to fluid handling capacity and new drilling cellars to facilitate continued expansion of the Bretana field
• $36.5 million for investments in erosion control measures at Bretana (allocated ~75% to opex)

These capital investments are expected to support 2025 annual average production in the range of 21,000 - 23,000 bopd, where the midpoint of 22,000 bopd implies growth of approximately 24% relative to 2024 annual average production of 17,733 bopd. Adjusted EBITDA and Funds Flow guidance assumes a 2025 annual average Brent oil price of $75.00/Bbl, a slight decrease relative to 2024 ($79.80/Bbl average). At the midpoint of production guidance (22,000 bopd), PetroTal expects to generate approximately $240-250 million Adjusted EBITDA, an increase of approximately 6% compared to 2024. However, it is important to note that 2025 Adjusted EBITDA guidance is net of approximately $30 million in non-recurring erosion control expenses that will be allocated to opex. Consistent with prior years, PetroTal has designed its capital program to provide a stable dividend and maintain minimum unrestricted cash liquidity of $60 million.

Notes:

• Royalties include 2.5% and 1.5% allocation to social trust funds for Bretana and Los Angeles, respectively.
• Operating and Transportation expenses include approximately $30 million in non-recurring costs related to erosion control.
• G&A expense includes cash variable compensation, mainly Peru mandatory profit sharing and non-cash equity compensation valued at approximately $11.5 million.
• Tax Expense represents total 2025 accrued taxes. PetroTal expects to incur approximately $40 million in cash taxes in 2025.
• Capex guidance includes approximately $8.5 million in capitalized costs related to erosion control.
• Adjusted EBITDA, Funds Flow, Free Funds Flow: see disclaimers regarding non-GAAP financial measures.

Drilling & Facilities Investments

As previously disclosed with Q3 2024 financial results on November 14, 2024, PetroTal acquired a new drilling rig in October 2024. This rig is currently being imported to Peru, with the expectation that it will be moved to the Los Angeles field in Q2 2025 and commissioned by mid-year. PetroTal's 2025 budget contemplates the drilling of a total of four development wells in both fields, with the last one to be completed in early 2026.

Major investments in field infrastructure include the expansion of fluid handling capacity at Bretana, where PetroTal is currently installing the fourth train of its central processing facility. This project will ultimately increase installed crude oil processing capacity to 32,000 bopd. The 2025 budget also includes upgrades to existing well cellars, along with the construction of new cellars for ten wells (pending approval of the updated EIA), which are expected to lay the foundation for PetroTal's drilling program over the next two years.

Production & Sales Guidance

PetroTal's 2025 production guidance of 21,000 - 23,000 bopd assumes that the current development drilling program at Bretana will wind down following the completion of well 23H, expected in late January. Flush production from wells 22H and 23H is expected to be sufficient to support production levels throughout H1 2025, in advance of the annual dry season which typically sets in by August. 2025 production guidance assumes dry season river levels similar to 2023, which was severe in a historical context, but represents a slight improvement compared to the record drought conditions experienced in 2024.

Although PetroTal continues to pursue new marketing strategies for its production, 2025 guidance assumes 10-15% of crude oil volumes are delivered to the Iquitos Refinery with the remainder going through the Brazil export route. The Company will update the market on any material developments in its marketing strategy as necessary.

Return of Capital Policy

PetroTal's 2025 capital program gives top priority to the Company's ongoing base dividend, which has an annual cash funding requirement of approximately $55 million, implying a dividend yield of 13% at the current share price. The Company also intends to maintain its ongoing share buyback program, which has cash funding requirements of approximately $0.2 million per month. As it has done in the past, PetroTal will consider dividend top up payments on a quarterly basis, consistent with the Company's dividend policy.

Erosion Control Project

PetroTal will make significant advancements on its erosion control project in 2025. Consistent with previous disclosure, the project is expected to cost a total of $65-75 million, spread over the 2024-2026 period. In aggregate, project costs are expected to be split approximately 65/35 between opex and capex.

Total investment on erosion control in 2025 is expected to amount to $35-40 million, of which approximately 75% will be allocated to operating expenses. As previously disclosed in PetroTal's Q4 2024 operations update on January 9, 2025, the company plans to expense approximately $10 million of steel components associated with the erosion control project with its Q4 2024 financial results. The balance of erosion control expenditures (approximately $15-20 million) will occur in 2026, by which time the costs will largely be allocated to capex. These measures, which are being conducted for the shared benefit of the Bretana community, are essential to ensure PetroTal retains the ability to capture value from the Bretana field for decades to come.

Exploration Activities

The 2025 capital program includes approximately $4 million for exploration activities, mainly to fund ongoing permitting and road construction at Block 107. As previously announced on January 9, 2025, PetroTal recently received an extension to the Fifth Exploration period of the Block 107 license contract, allowing ample time to pursue an exploration program at the Osheki-Kametza prospect.

The Company also intends to commence exploration activities on the recently acquired TEA's XCVII and XCVIII, in the vicinity of Block 131. The acquisition of these TEA's essentially reconstitutes the historical boundaries of the present-day Block 131, at no cost to PetroTal. A number of exploration prospects and leads have already been identified on existing 2D seismic coverage, on trend with the producing Los Angeles field and even Block 107. The TEA's grant PetroTal the right to convert the acreage to exploration license contracts within the next two years, pending the completion of work commitments, which are mainly geological and geophysical studies.

At Block 95, PetroTal is currently evaluating a shift in its exploration strategy while awaiting EIA approval for its 2D seismic survey. As an alternative to the planned seismic program, the Company is exploring the possibility of a slim-hole exploration drilling program in 2026. This approach aims to de-risk the most promising structures south of the Bretana field by offering a faster, more cost-effective, and less invasive method for conducting exploration drilling in this remote location.

Updated Investor Presentation

PetroTal has updated its corporate investor presentation to reflect 2025 guidance. Please visit https://petrotalcorp.com/investors/ for more information.

2025 Guidance Webcast

PetroTal will host a webcast to discuss its 2025 budget and guidance release on Thursday January 16, 2025 at 9am CT (Houston), 3pm GMT (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

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