Q2 2025 Financial and Operating Results

Calgary, AB and Houston, TX - August 7, 2025 - PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to report its operating and financial results for the three months ended June 30, 2025. All amounts herein are in United States dollars unless stated otherwise.

Selected financial and operational information outlined above should be read in conjunction with the Company's unaudited consolidated financial statements and management's discussion and analysis ("MD&A") for the three months ended June 30, 2025, which are available on SEDAR+ at www.sedarplus.ca and on the Company's website at www.PetroTal‐Corp.com.

Key Highlights

• Average Q2 2025 sales and production of 20,578 and 21,039 barrels of oil per day ("bopd"), respectively;
• Generated Adjusted EBITDA(1) and Free Funds Flow(1) of $44.3 million ($23.66/bbl) and $27.2 million ($14.55/bbl), respectively;
• Q2 2025 capital expenditures of $17.1 million, bringing H1 2025 capital expenditures to $40.7 million;
• Net Income of $17.5 million ($9.35/bbl) in Q2 2025, and $48.4 million ($11.46/bbl) in H1 2025;
• Total cash of $142.1 million, including $99.3 million of unrestricted cash;
• Declaring a quarterly dividend of $0.015/sh, payable to shareholders on September 12, 2025, and;
• Revision of 2025 production guidance to a range of 20,000 to 21,000 bopd, on capital spending of $80 million.

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

"PetroTal has once again delivered strong results in the second quarter of 2025, reflecting our ongoing commitment to profitable long-term growth. Even under lower oil prices this quarter, PetroTal is reporting free funds flow of more than $27 million, while holding our available cash reserves broadly flat near $100 million. The Bretana field is also performing as expected, with recent production topping 20,000 bopd.

As discussed in our July 14 operations update, we have encountered delays in the resumption of our development drilling program. As a result, we are revising our 2025 production guidance to a range of 20,000 to 21,000 bopd, from 21,000-23,000 bopd previously.

At the Bretana field, we are taking advantage of the gap in our drilling campaign to fully optimize our long-term plans for the asset, an exercise which takes on heightened importance given recent weakness in oil pricing. As indicated in the 2024 year-end reserves report, the field still has sixteen proved and probable locations remaining, and that is before we have even begun development of the VS1 sand in the Upper Vivian Formation. PetroTal is committed to developing the field in a responsible manner for all our stakeholders, at a variety of oil price assumptions. We have plenty of work ahead of us in the second half of 2025 and look forward to updating the market on our progress."

Selected Financial Highlights

Three Months Ended

• Approximately 90% of Q2 2025 sales were through the Brazilian route vs 88% in Q1 2025.
• Royalties include the impact of the 2.5% community social trust.
• Market capitalization for Q2 2025, Q1 2025 and Q2 2024 assume share prices of $0.50, $0.475, and $0.53 respectively on the last trading day of the quarter.
• Includes restricted cash balances.

Additional financial and operational updates during and subsequent to the quarter ending June 30, 2025:

Block 95 Update

PetroTal produced an average of 20,512 bopd from the Bretana field in Q2 2025. Bretana production declined by approximately 2,150 bopd relative to the prior quarter, due to a combination of natural declines and previously disclosed pump failures in four producing wells in Q4 2024 and Q1 2025. PetroTal successfully replaced all four pumps ahead of schedule by the end of July 2025, restoring approximately 4,400 bopd of production capacity. As a result, field production averaged approximately 20,000 bopd in the month of July, compared to 18,899 bopd in June. Barge exports have continued near 100% capacity throughout the month of July; in the event that river levels remain above normal through the coming dry season, PetroTal would not expect to encounter any material reduction in export capacity.

During the second quarter, PetroTal completed the installation of the CPF-4 processing facility, increasing nominal oil treatment capacity at Bretana to 26,000 bopd, which has been established as a more optimum design for the Company's current output than the previously mentioned 32,000 bopd. Oil production remains constrained by water treatment capacity, which currently stands at just over 170,000 barrels of water per day("bwpd"). The remaining 2025 Bretana capital program is largely allocated to field infrastructure, including completion of the L2 platform, which will be required to accommodate additional development wells beginning in 2026.

Due to a combination of factors, including sustained lower oil prices, regulatory considerations, and delays commissioning its drilling rig, PetroTal has taken the decision to pause investment on several projects at Bretana in order to rigorously evaluate and optimize its long-term development plan for the asset. The Company intends to provide a revised field development plan, incorporating holistic forecasts for fluid handling capacity, integrated development of the VS1 and VS2 sands, and export transportation, in time for its year-end 2025 reserve report, which is typically published in February each year.

Block 131 Update

Los Angeles field production averaged 526 bopd in Q2 2025, down approximately 90 bopd compared to the prior quarter. PetroTal performed a cased-hole well logging program at the Los Angeles field in the second quarter, which necessitated the shut-in of targeted wells for brief periods. The Company is currently mobilizing the service rig which recently completed the pump replacements at Bretana to the Los Angeles field, where it will carry out a planned workover program on at least three wells. The workover program, which is scheduled to run into September 2025, is expected to increase field production by a total of approximately 500-1,500 bopd (on a peak monthly average basis). PetroTal is evaluating options to secure a drilling rig to initiate the Block 131 development program, pending technical review of the workover program.

Bretana Erosion Control Project

PetroTal expensed $0.7 million of erosion control costs in Q2 2025, down from $1.8 million in the prior quarter. As disclosed previously, the Ucayali River at the inland port of Pucallpa was unseasonably high throughout the local wet season. The staging yard at Pucallpa, where PetroTal's contractor has been preparing equipment for the erosion control project, was flooded for approximately six weeks in March - April 2025.

River levels have since declined, allowing the construction consortium to resume activity, and a number of project milestones were completed by the end of July. The main piling barge, along with the first batch of fabricated steel components, recently arrived at Bretana and is expected to commence the test piles for the first breakwater within the next two weeks. In-line with previous disclosures, PetroTal estimates the project is approximately one month behind schedule, with a targeted completion date of Q3 2026. There are no material changes to cost estimates for the project at this time.

Cash and Liquidity Update

PetroTal ended Q2 2025 with a total cash position of $142 million, of which $99 million was unrestricted. The increase in total cash primarily reflects the first tranche of the previously announced COFIDE loan, which was drawn on May 20, 2025. Of the $42.8 million that PetroTal carried as Restricted Cash on June 30, approximately $31.9 million was related to the escrow account of the COFIDE loan. Available cash as of June 30, 2025 amounted to $99.3 million, compared to $84.1 million at the same time last year.

As previously announced, PetroTal has entered into hedge agreements for the sale of its crude oil, during periods when Brent oil pricing topped $80.00/bbl. These hedges consist of costless collars with a Brent floor price of $65.00/bbl and a ceiling of $82.50/bbl, with a cap of $102.50/bbl. As of the end of Q2 2025, the hedges covered approximately 44% of PetroTal's remaining estimated sales volumes through the end of 2025. PetroTal recorded a $5.6 million gain on these hedges as of June 30.

2025 Guidance Update

Accounting for several factors discussed above, most notably lower than forecast oil prices and delays in the resumption of its development drilling program, PetroTal is updating market guidance for key 2025 financial and operational metrics. The Company now expects group production to average 20,000-21,000 bopd in 2025, down from the range of 21,000-23,000 bopd that was originally communicated on January 16, 2025.

Annual adjusted EBITDA guidance, which was previously based on the assumption that Brent oil prices would average $75.00/bbl in 2025, is being reduced to a range of $170 - 185 million, from $240 - 250 million previously. Updated adjusted EBITDA guidance is based on H1 2025 actual adjusted EBITDA of $116 million, plus estimated H2 2025 adjusted EBITDA at Brent oil prices of $65.00 - 70.00/bbl. PetroTal attributes the majority of the reduction (approximately $50-55 million) in forecast adjusted EBITDA to lower oil price realizations, with the balance due to lower forecast sales volumes, partially offset by cost savings. Note that adjusted EBITDA guidance is net of approximately $30 million in expenses associated with the erosion control project (consistent with prior treatment), which are expected to be non-recurring.

PetroTal is also reducing guidance for 2025 capital expenditures to $80 million, from $140 million previously. The reduction is primarily due to delays in resuming the development drilling program at Block 131, and to a lesser extent the deferral or cancellation of several non-essential projects due to recent weakness in oil pricing. Original guidance provided in January assumed approximately $35-40 million of capital spending at Block 131; however, the updated budget largely reflects a maintenance capital program at Blocks 95 and 131. Pending technical interpretation of the results of the workover program, and should a drilling rig arrive at the Los Angeles field before year end 2025, the Company may deploy additional capital at Block 131.

Importantly, PetroTal would like to re-emphasize its commitment to a robust capital returns policy. To the extent that oil prices and its funding obligations allow, the Company will continue to prioritize a stable dividend for its shareholders.

Q2 2025 Dividend Declaration

PetroTal's Board of Directors has declared a quarterly cash dividend of USD$0.015 per common share, payable according to the following timeframe:

• Record date: 29 August 2025
• Ex-Dividend date: 29 August 2025
• Payment date: 12 September 2025

This dividend is with respect to Q2 2025 results and includes the recurring USD$0.015 per common share amount but no liquidity sweep this quarter due to anticipated heavier cash requirements over the next two quarters.

Corporate Presentation Update

Q2 2025 Webcast Link for August 7, 2025

PetroTal's management team will host a webcast to discuss Q2 2025 results on August 7, 2025 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 T: +44 (0) 20 7418 8900

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