2025 Year-End Oil Reserves
PetroTal Corp. has announced its 2025 year-end oil reserves, reporting 66.4 million barrels of proved ("1P") reserves and 110.2 million barrels of proved and probable ("2P") reserves, which are largely unchanged year-over-year. The company replaced 106% of its Bretana 1P reserves and 76% of its 2P reserves after producing 6.9 million barrels in 2025. The after-tax reserve value per share (PV10AT) for PDP and 1P reserves is estimated at $0.48 and $0.75 respectively, with changes attributed to reduced oil price assumptions and increased capital expenditure forecasts for the Bretana field development, including additional production and water disposal wells. The reserve life index for PDP and 1P stands at 5.2 and 9.3 years, respectively.
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Calgary, AB and Houston, TX - February 25, 2026 - PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to announce the results of its 2025 year-end reserve evaluation (the "NSAI Report") by Netherland, Sewell & Associates, Inc. ("NSAI"). All currency amounts are in United States dollars unless otherwise stated.
Key Highlights:
| • | Proved ("1P") and Proved and Probable ("2P") reserves of 66.4 million barrels of oil ("mmbbls") and 110.2 mmbbls, respectively, approximately unchanged YoY; |
| • | Replaced 106% and 76% of Breta ñ a 1P and 2P reserves, respectively, after the field produced 6.9 mmbbls in 2025; |
| • | PDP and 1P after-tax reserve value per share (PV10AT) estimated at $0.48/sh (C$0.66, or £0.36) and $0.75/sh (C$1.03, or £0.56) respectively; |
| • | Changes to PV10AT relative to YE24 are primarily due to a substantial reduction in forecast oil price assumptions, as well as higher development capital assumptions associated with the incorporation of additional production and water disposal wells in the Breta ñ a field development plan; |
| • | PDP and 1P reserve life index ("RLI") estimated at 5.2 and 9.3 years, respectively; |
| • | Bretaña 1P and 2P original oil in place ("OOIP") unchanged at 377 mmbbls and 494 mmbbls, respectively. |
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
"PetroTal's 2025 year-end reserves evaluation highlights the underlying strength of our asset base. While we have adjusted the pace of investment in response to lower commodity prices, the technical foundation that guides our development of the Bretana field remains consistent. Our independent reserves evaluator continues to support an original 2P OOIP estimate of 494 million barrels - unchanged from year-end 2024 and significantly higher than the 329 million barrels estimated when we began development in 2018. Bretaña remains a large, high-quality oil resource with significant long-term potential, justifying continued investment of capital in a proven asset.
Although 2026 requires a disciplined approach to capital allocation, the scale of the Bretaña resource gives us flexibility as market conditions evolve. We are focused on protecting value today while preserving the opportunity to grow reserves over time, particularly if stronger oil prices support additional investment. With a stable technical framework and continued independent validation of our resource base, we remain confident in the long-term outlook for Bretaña and its ability to deliver future reserve growth. We look forward to the planned resumption of drilling in October 2026 and will continue to update the market on our progress as necessary."
Summary of Year-End 2025 Reserves
The following tables summarize PetroTal's key reserves information as at December 31, 2025, 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 reserves 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, 2025 (the "AIF") to be filed on SEDAR+ (www.sedarplus.ca) and posted on PetroTal's website (www.petrotal-corp.com) in March 2026.
Year-End 2025 Crude Oil Reserves Summary - Gross, PetroTal 100% Working Interest (mmbbls)
| CATEGORY | Bretana YE25 | Los Angeles YE25 | PetroTal YE25 | PetroTal YE24 | YoY Change |
|---|---|---|---|---|---|
| Proved | |||||
| Developed Producing | 36.8 | 0.3 | 37.1 | 45.5 | -19% |
| Undeveloped | 26.6 | 2.7 | 29.3 | 21.6 | +36% |
| Total Proved | 63.4 | 3.0 | 66.4 | 67.1 | -1% |
| Probable | 42.9 | 0.9 | 43.8 | 46.6 | -6% |
| Total Proved + Probable | 106.3 | 3.9 | 110.2 | 113.7 | -3% |
| Possible 1 | 74.5 | 0.8 | 75.3 | 99.6 | -24% |
| Total Proved + Probable + Possible | 180.8 | 4.7 | 185.5 | 213.3 | -13% |
- Possible development case assumes Block 95 contract extension to 2051; of the 74.5 mmbl included in Possible reserves at YE25, approximately 36.1 mmbbl are produced beyond the expiration of the current license contract in 2041.
PetroTal did not undertake any development drilling in 2025. As a result, reserves replacement is entirely due to revisions to the Bretaña field development plan. At Bretaña (Block 95, PetroTal 100% working interest), PetroTal added five (5) new production wells to the 1P development plan, and six (6) new production wells to the 2P development plan, bringing total development drilling inventory to 37 and 46 wells, respectively. The revised field development plan also includes capital for 10 water disposal wells (including conversions of two producing wells to injectors) in the 2P case, up from 6 at YE24.
At the Los Angeles field (Block 131, PetroTal 100% working interest), 1P and 2P reserves decreased by 1.2 mmbbl and 1.9 mmbbl compared to YE24, respectively. Declines in Los Angeles reserves volumes are the result of revisions to the field development plan incorporating data from the 2025 workover and stimulation campaign.
Most of the change in the present value of PetroTal's reserves relative to YE24 is attributable to a reduction in forecast oil pricing used by the Company's reserve evaluator. To a lesser extent, the changes in present value are also due to higher future development cost estimates linked primarily to the incorporation of additional production and water disposal wells in the Bretana field development plan, as well as additional capital for upgrades to fluid handling and field infrastructure.
Year-End 2025 Net Present Value Discounted at 10% - Before Tax ($ millions)
| CATEGORY | YE25 | YE24 | Change |
|---|---|---|---|
| Proved | |||
| Developed Producing | $714 | $1,174 | -39% |
| Undeveloped | $440 | $551 | -20% |
| Total Proved | $1,154 | $1,725 | -33% |
| Probable | $823 | $925 | -11% |
| Total Proved plus Probable | $1,977 | $2,651 | -25% |
| Possible | $1,142 | $1,606 | -29% |
| Total Proved plus Probable & Possible | $3,119 | $4,257 | -27% |
Year-End 2025 Net Present Value Discounted at 10% - After Tax ($ millions)
| CATEGORY | YE25 | YE24 | Change | |||
|---|---|---|---|---|---|---|
| Proved | ||||||
| Developed Producing | $439 | $776 | -43% | |||
| Undeveloped | $248 | $353 | -30% | |||
| Total Proved | $687 | $1,128 | -39% | |||
| Probable | $480 | $592 | -19% | |||
| Total Proved plus Probable | $1,167 | $1,720 | -32% | |||
| Possible | $671 | $1,036 | -35% | |||
| Total Proved plus Probable & Possible | $1,838 | $2,756 | -33% | |||
| Five Year Crude Oil Price Forecast - NSAI Report | ||||||
| Year-End Forecast: | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | 5 Yr Avg |
| Brent (USD$/bbl) - January 1, 2026 | $63.92 | $69.13 | $74.36 | $76.10 | $77.62 | $72.23 |
| Brent (USD$/bbl) - January 1, 2025 | $75.58 | $78.51 | $79.89 | $81.82 | $83.46 | $79.85 |
The oil price projections used by NSAI are based upon an average of January 1, 2026 and 2025 forecasts of Brent Crude futures prices prepared by three qualified reserves evaluators: GLJ Petroleum Consultants Ltd., McDaniel & Associates Consultants Ltd. and Sproule Associates Limited.
Net Present Value Summary
The following tables summarize NSAI's estimates of future net revenue attributable to the reserve categories noted below, both before and after income taxes. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to reserves estimated by NSAI represent the fair market value of those reserves.
| CATEGORY Discounted at: | Future Net Revenue Before Income Taxes ($ millions) | ||||
|---|---|---|---|---|---|
| 0% | 5% | 10% | 15% | 20% | |
| Proved | |||||
| Developed Producing | $1,015 | $842 | $714 | $616 | $542 |
| Undeveloped | $963 | $643 | $440 | $306 | $214 |
| Total Proved | $1,978 | $1,486 | $1,154 | $922 | $756 |
| Probable | $2,060 | $1,272 | $823 | $556 | $391 |
| Total Proved + Probable | $4,038 | $2,757 | $1,977 | $1,479 | $1,147 |
| Possible | $4,165 | $2,065 | $1,142 | $694 | $456 |
| Total Proved + Probable + Possible | $8,203 | $4,822 | $3,119 | $2,173 | $1,602 |
| CATEGORY Discounted at: | Future Net Revenue After Income Taxes ($ millions) | ||||
| 0% | 5% | 10% | 15% | 20% | |
| Proved | |||||
| Developed Producing | $670 | $537 | $439 | $366 | $311 |
| Undeveloped | $615 | $387 | $248 | $159 | $101 |
| Total Proved | $1,285 | $924 | $687 | $525 | $412 |
| Probable | $1,326 | $778 | $480 | $310 | $208 |
| Total Proved + Probable | $2,610 | $1,702 | $1,167 | $835 | $621 |
| Possible | $2,680 | $1,270 | $671 | $390 | $245 |
| Total Proved + Probable + Possible | $5,290 | $2,973 | $1,838 | $1,225 | $866 |
- The estimated tax rate is 32%.
- Future net revenue after income taxes includes a 5% workers profit sharing deduction.
- These estimates are a simplification of current tax laws and were not prepared by a tax accountant or attorney.
Year-End 2025 Reserves Value Per Share - PV10 After Tax
| CATEGORY | YE25 | YE24 | ||||
|---|---|---|---|---|---|---|
| US$/sh | CAD$/sh | GBP/sh | US$/sh | CAD$/sh | GBP/sh | |
| Proved Developed Producing | $0.48 | $0.66 | £ 0.36 | $0.89 | $1.22 | £ 0.68 |
| Proved | $0.75 | $1.03 | £ 0.56 | $1.24 | $1.78 | £ 0.99 |
| Proved plus Probable | $1.28 | $1.75 | £ 0.95 | $1.89 | $2.71 | £ 1.51 |
| Proved plus Probable & Possible | $2.01 | $2.76 | £ 1.50 | $3.02 | $4.35 | £ 2.41 |
The figures above represent the NPV-10 (after tax) of PetroTal's consolidated reserves, divided by the number of common shares outstanding as of December 31 for the respective year. Canadian and GBP share prices are converted at the respective year end foreign exchange conversion rates. Common shares outstanding at December 31, 2025 were 913.0 million shares and at December 31, 2024 were 911.8 million shares.
Future Development Costs
The following tables summarize future development costs deducted in the estimation of PetroTal's future net revenue attributable to the reserve categories noted below. Future development costs are capital expenditures required in the future for the Company to convert proved undeveloped reserves, probable reserves and possible reserves to proved developed producing reserves.
The increase in future development cost estimates is primarily due to the incorporation of additional production and water disposal wells in the Bretaña field development plan, and additional capital for upgrades to fluid handling and field infrastructure. The revised field development plan now contemplates totals of 37/46 production wells in the 1P/2P cases, 9/14 water disposal wells, and 500,000/800,000 bfpd of fluid handling capacity.
| Future development costs ($ millions) | YE25 | YE24 | Change |
|---|---|---|---|
| Proved | $534 | $192 | +178% |
| Proved plus Probable | $908 | $645 | +41% |
| Proved plus Probable & Possible | $1,153 | $932 | +24% |
| Future development costs ($/bbl) | YE25 | YE24 | Change |
| Proved | $8.04 | $2.87 | +180% |
| Proved plus Probable | $8.24 | $5.68 | +45% |
| Proved plus Probable & Possible | $6.22 | $4.37 | +42% |
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
| CATEGORY | YE25 | YE24 |
| Proved Developed Producing | 5.2 years | 7.0 years |
| Proved | 9.3 years | 10.3 years |
| Proved plus Probable | 15.5 years | 17.5 years |
| Proved plus Probable & Possible | 26.0 years | 32.9 years |
- 2025 values based on 2025 year-end reserves divided by average 2025 production of 19,473 bopd.
- The production license for Block 95 expires in 2041.
- 2024 values based on 2024 year-end reserves divided by average 2024 production of 17,785 bopd.
2025 Year-End Company Gross Reserves Reconciliation (mmbbls)
| Proved | Proved plus Probable | Proved plus Probable & Possible | |
|---|---|---|---|
| December 31, 2024 | 67.1 | 113.7 | 213.3 |
| Infill Drilling | 0.0 | 0.0 | 0.0 |
| Technical Revisions | 6.4 | 3.6 | (20.7) |
| Acquisitions | 0.0 | 0.0 | 0.0 |
| Production | (7.1) | (7.1) | (7.1) |
| December 31, 2025 | 66.4 | 110.2 | 185.5 |
| 2025 Year-End Bretaña Gross Reserves Reconciliation (mmbbls) | |||
| Proved | Proved plus Probable | Proved plus Probable & Possible | |
| December 31, 2024 | 62.9 | 107.9 | 206.6 |
| Infill Drilling | 0.0 | 0.0 | 0.0 |
| Technical Revisions | 7.4 | 5.3 | (18.9) |
| Acquisitions | 0.0 | 0.0 | 0.0 |
| Production | (6.9) | (6.9) | (6.9) |
| December 31, 2025 | 63.4 | 106.3 | 180.8 |
| 2025 Year-End Los Angeles Gross Reserves Reconciliation (mmbbls) | |||
| Proved | Proved plus Probable | Proved plus Probable & Possible | |
| December 31, 2024 | 4.2 | 5.8 | 6.7 |
| Infill Drilling | 0.0 | 0.0 | 0.0 |
| Technical Revisions | (1.0) | (1.7) | (1.9) |
| Acquisitions | 0.0 | 0.0 | 0.0 |
| Production | (0.2) | (0.2) | (0.2) |
| December 31, 2025 | 3.0 | 3.9 | 4.7 |
Camilo McAllister
Executive Vice President and Chief Financial Officer
Manolo Zuniga
President and Chief Executive Officer
PetroTal Investor Relations
Celicourt Communications
Mark Antelme / Charles Denley-Myerson
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / James Spinney
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
UNAUDITED FINANCIAL INFORMATION: Certain financial and operating results included in this press release, including production information, total cash, accounts payable and accounts receivable, are based on unaudited estimated results. These estimated results are subject to change upon completion of the Company's audited financial statements for the year ended December 31, 2025, and changes could be material.
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