2024 Year-End Oil Reserves
2024 year-end proved reserves of 67.1 mmbbls, up 40% year-on-year; PDP reserve value per share increased 68%.
- Proved reserves (1P) 67.1 mmbbls (prior 48.0 mmbbls)
- Proved + Probable reserves (2P) 113.7 mmbbls (prior 100.2 mmbbls)
- Reserve replacement ratio (1P) 293%
- Reserve replacement ratio (2P) 208%
- PDP reserve value per share $0.89 (prior increased 68% year-on-year)
- Proved reserve PV10 After Tax value $1.0 billion
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Calgary, AB and Houston, TX - February 20, 2025 - PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to announce the results of its 2024 year-end reserve evaluation (the "NSAI Report") by Netherland, Sewell & Associates, Inc. ("NSAI"). All currency amounts are in United States dollars unless otherwise stated.
Highlights:
- 1P and 2P reserves of 67.1 million barrels of oil ("mmbbls") and 113.7 mmbbls, respectively;
- Replaced 293% and 208% of 1P and 2P reserves, respectively;
- PDP reserve value per share increased 68% year-on-year, to $0.89 (C$1.22, or £0.68);
- PDP and 1P reserve life index ("RLI") increased to 7.0 years and 10.3 years, respectively, while 2P RLI is estimated at 17.5 years;
- Bretana OOIP estimate increases to 494 mmbbls in the 2P case, compared to 329 mmbbls at PetroTal's inception.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"PetroTal's 2024 year-end reserves evaluation represents a satisfying conclusion to a successful year for the Company. Proven reserves for the Bretana oil field now exceed 60 million barrels. Including the 23 million barrels that the field has already produced to date, Bretana has quadrupled in size since we began our development program in 2018.
The intrinsic value of PetroTal's reserve base has grown substantially as well - our Proven reserves are now worth more than $1.0 billion on a PV10 After Tax basis. This reflects strong returns on our invested capital, which have compounded as our development program has grown over the past few years. The Bretana field is a world-class asset; we are constantly looking for new ways to maximize its value, whether by optimizing the field development plan, or opening up new export routes for our product.
Block 131 and its adjacent TEA blocks are exciting additions to our portfolio, which we see as strong complements to the Bretana growth story. The Los Angeles field is already providing a preview of what's to come with NSAI attributing an additional 13 million barrels of original oil in place ("OOIP") compared to its pre-acquisition evaluation. We look forward to providing additional updates as 2025 progresses."
Summary of Year-End 2024 Reserves
The following tables summarize PetroTal's key reserve information as at December 31, 2024, as presented in the reserves report prepared by NSAI, an independent qualified reserves evaluator. Reserve volumes are presented on PetroTal 100% working interest before royalty basis; in certain tables the columns may not add due to rounding differences.
PetroTal's reserve estimates have been prepared in accordance with the standards contained in the most recent publication of the Canadian Oil and Gas Evaluation Handbook (the "COGEH") and the reserve definitions contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). In addition to the summary information disclosed in this announcement, more detailed information will be included in PetroTal's annual information form for the year ended December 31, 2024 (the "AIF") to be filed on SEDAR+ (www.sedarplus.ca) and posted on PetroTal's website (www.petrotal-corp.com) in March 2025.
Year-End 2024 Crude Oil Reserves Summary - Gross, PetroTal 100% Working Interest (mmbbls)
| CATEGORY | Bretana YE24 | Los Angeles YE24 | PetroTal YE24 | PetroTal YE23 | YoY Change |
|---|---|---|---|---|---|
| Proved | |||||
| Developed Producing | 44.8 | 0.8 | 45.5 | 28.6 | +59% |
| Undeveloped | 18.2 | 3.4 | 21.6 | 19.5 | +11% |
| Total Proved | 62.9 | 4.2 | 67.1 | 48.0 | +40% |
| Probable | 45.0 | 1.6 | 46.6 | 52.1 | -11% |
| Total Proved + Probable | 108.0 | 5.8 | 113.7 | 100.2 | +14% |
| Possible | 98.7 | 1.0 | 99.6 | 99.5 | 0% |
| Total Proved + Probable + Possible | 206.6 | 6.7 | 213.3 | 199.6 | +7% |
Growth in Proved reserve categories is due to a relatively active development drilling program in 2024 (PetroTal drilled 7 development wells in 2024, compared to 3 wells in 2023), which converted significant volumes from Probable reserves to higher value Proved categories. Extended production history from existing wells also contributed to improved confidence in decline profiles. Reserves growth in the 2P and 3P categories is a result of updates to the Bretana field development plan, which incorporates 8 and 14 new development wells in the respective reserve categories. NSAI's production forecasts include the ONP pipeline as a viable export route, facilitating additional export volumes beginning in 2027. However, PetroTal is actively pursuing options to re-commence pipeline exports by the end of 2025.
At the Los Angeles field (Block 131, PetroTal 100% working interest), NSAI attributed an additional 13 million barrels of OOIP compared to its pre-acquisition evaluation, based on PetroTal's updated seismic and geological interpretation. This supported 1.5 million barrels of reserve additions in the 2P category.
Year-End 2024 Net Present Value Discounted at 10% - Before Tax ($ millions)
| CATEGORY | YE24 | YE23 | Change |
|---|---|---|---|
| Proved | |||
| Developed Producing | $1,174 | $748 | +57% |
| Undeveloped | $551 | $623 | -11% |
| Total Proved | $1,725 | $1,371 | +26% |
| Probable | $925 | $1,169 | -21% |
| Total Proved plus Probable | $2,651 | $2,540 | +4% |
| Possible | $1,606 | $1,346 | +19% |
| Total Proved plus Probable & Possible | $4,257 | $3,886 | +10% |
Year-End 2024 Net Present Value Discounted at 10% - After Tax ($ millions)
| CATEGORY | YE24 | YE23 | Change | |||
|---|---|---|---|---|---|---|
| Proved | ||||||
| Developed Producing | $776 | $487 | +59% | |||
| Undeveloped | $353 | $401 | -12% | |||
| Total Proved | $1,128 | $888 | +27% | |||
| Probable | $592 | $751 | -21% | |||
| Total Proved plus Probable | $1,720 | $1,639 | +5% | |||
| Possible | $1,036 | $869 | +19% | |||
| Total Proved plus Probable & Possible | $2,756 | $2,508 | +10% | |||
| Five Year Crude Oil Price Forecast - NSAI Report | ||||||
| Year-End Forecast: | 2025 | 2026 | 2027 | 2028 | 2029 | 5 Yr Avg |
| Brent (USD$/bbl) - January 1, 2025 | $75.58 | $78.51 | $79.89 | $81.82 | $83.46 | $79.85 |
| Brent (USD$/bbl) - January 1, 2024 | $79.18 | $80.36 | $81.79 | $83.41 | $85.09 | $81.97 |
The oil price projections used by NSAI are based upon an average of December 31, 2024 and 2023 forecasts of Brent Crude futures prices prepared by three qualified reserves evaluators: GLJ Petroleum Consultants Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited.
Net Present Value Summary
The following tables summarize NSAI's estimates of future net revenue attributable to the reserve categories noted below, both before and after income taxes. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to reserves estimated by NSAI represent the fair market value of those reserves.
| CATEGORY | Future Net Revenue Before Income Taxes ($ millions) | ||||
|---|---|---|---|---|---|
| 0% | 5% | 10% | 15% | 20% | |
| Proved | |||||
| Developed Producing | $1,770 | $1,417 | $1,174 | $1,001 | $873 |
| Undeveloped | $984 | $721 | $551 | $436 | $354 |
| Total Proved | $2,753 | $2,138 | $1,725 | $1,436 | $1,227 |
| Probable | $2,295 | $1,427 | $925 | $620 | $426 |
| Total Proved + Probable | $5,049 | $3,565 | $2,651 | $2,057 | $1,653 |
| Possible | $6,168 | $2,967 | $1,606 | $959 | $618 |
| Total Proved + Probable + Possible | $11,216 | $6,532 | $4,257 | $3,016 | $2,271 |
| CATEGORY | Future Net Revenue After Income Taxes ($ millions) | ||||
| 0% | 5% | 10% | 15% | 20% | |
| Proved | |||||
| Developed Producing | $1,158 | $933 | $776 | $662 | $578 |
| Undeveloped | $630 | $462 | $353 | $279 | $227 |
| Total Proved | $1,788 | $1,395 | $1,128 | $941 | $805 |
| Probable | $1,478 | $917 | $592 | $394 | $268 |
| Total Proved + Probable | $3,267 | $2,312 | $1,721 | $1,335 | $1,073 |
| Possible | $3,973 | $1,915 | $1,036 | $617 | $397 |
| Total Proved + Probable + Possible | $7,239 | $4,227 | $2,757 | $1,952 | $1,469 |
- The estimated tax rate is 32%.
- Future net revenue after income taxes includes a 5% workers profit sharing deduction.
- These estimates are a simplification of current tax laws and were not prepared by a tax accountant or attorney.
Year-End 2024 Reserves Value Per Share - PV10 After Tax
| CATEGORY | YE24 | YE23 | ||||
|---|---|---|---|---|---|---|
| US$/sh | CAD$/sh | GBP/sh | US$/sh | CAD$/sh | GBP/sh | |
| Proved Developed Producing | $0.89 | $1.22 | £ 0.68 | $0.53 | $0.70 | £ 0.42 |
| Proved | $1.24 | $1.78 | £ 0.99 | $0.97 | $1.29 | £ 0.76 |
| Proved plus Probable | $1.89 | $2.71 | £ 1.51 | $1.80 | $2.39 | £ 1.41 |
| Proved plus Probable & Possible | $3.02 | $4.35 | £ 2.41 | $2.75 | $3.65 | £ 2.16 |
The figures above represent the NPV-10 (after tax) of PetroTal's consolidated reserves, divided by the number of common shares outstanding as of December 31 for the respective year. Canadian and GBP share prices are converted at the respective year end foreign exchange conversion rates. Common shares outstanding at December 31, 2024 were 911.8 million shares and at December 31, 2023 were 912.3 million shares.
Future Development Costs
The following tables summarize future development costs deducted in the estimation of PetroTal's future net revenue attributable to the reserve categories noted below. Future development costs are capital expenditures required in the future for the Company to convert proved undeveloped reserves, probable reserves and possible reserves to proved developed producing reserves.
The increase in future development cost estimates is primarily due to the inclusion of development expenditures for Block 131, and the incorporation of additional development wells in the Bretana field development plan (8 wells and 14 wells in the 2P and 3P development case, respectively). Future development cost estimates also include capitalized erosion control expenditures.
| Future development costs ($ millions) | YE24 | YE23 | Change |
|---|---|---|---|
| Proved | $192 | $88 | +118% |
| Proved plus Probable | $645 | $500 | +29% |
| Proved plus Probable & Possible | $932 | $698 | +34% |
| Future development costs ($/bbl) | YE24 | YE23 | Change |
| Proved | $2.87 | $1.84 | +56% |
| Proved plus Probable | $5.68 | $4.99 | +14% |
| Proved plus Probable & Possible | $4.37 | $3.50 | +25% |
The future development costs are estimates of the future capital expenditures required to convert the corresponding reserves to PDP reserves. Future development costs per bbl are determined using the future development capital divided by the 1P, 2P, or 3P reserves.
Reserve Life Index(1-3)
| CATEGORY | YE24 | YE23 |
| Proved Developed Producing | 7.0 years | 5.5 years |
| Proved | 10.3 years | 9.2 years |
| Proved plus Probable | 17.5 years | 19.3 years |
| Proved plus Probable & Possible | 32.9 years | 38.4 years |
- 2024 values based on 2024 year-end reserves divided by average 2024 production of 17,785 bopd.
- The production license for Block 95 expires in 2041.
- 2023 values based on 2023 year-end reserves divided by average 2023 production of 14,248 bopd.
2024 Year-End Gross Reserves Reconciliation (mmbbls)
| Proved | Proved plus Probable | Proved plus Probable & Possible | |
|---|---|---|---|
| December 31, 2023 | 48.0 | 100.2 | 199.6 |
| Infill Drilling | 0.0 | 0.0 | 7.5 |
| Technical Revisions | 21.4 | 14.3 | 6.0 |
| Acquisitions | 4.2 | 5.8 | 6.7 |
| Production | (6.5) | (6.5) | (6.5) |
| December 31, 2024 | 67.1 | 113.7 | 213.3 |
Updated Investor Presentation
PetroTal has updated its corporate investor presentation to reflect year-end 2024 reserves. Please visit https://petrotalcorp.com/investors/ for more information.
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
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