PetroTal Announces Q3 2021 Operations and Liquidity Update

Calgary, Alberta and Houston, Texas--(Newsfile Corp. - October 13, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) ("PetroTal" or the "Company") announces an operations and liquidity update for Q3 2021, and updates on the ongoing community protests at pump station 5. All amounts herein are in United States dollars ("USD") unless otherwise stated.

Highlights:

• Q3 2021 production averaged 9,508 barrels of oil per day ("bopd"), within 2% of previous guidance;
• Q3 2021 exit production (last 7 day average in quarter) was 15,131 bopd, an increase of 89% over Q2 2021;
• October 1 to October 11, 2021, average production of 14,218 bopd;
• Well 8H has achieved payout in under 40 days on its $11.8 million capital cost, with continued robust average production of 7,485 bopd in Q4 2021 to date;
• Well 7D continues to deliver strong production above 1,300 bopd, having achieved two times payout to date;
• Well 9H drilling continues without delays, with first oil estimated in mid November 2021;
• Water disposal maintenance efforts were completed and will have long term field optimization benefits;
• Brazil route to market sales option proving viable, with PetroTal executing an export of 226,000 barrels in Q3 2021;
• Strong liquidity position maintained, with total liquidity of $58 million as at September 30, 2021; and,
• PetroTal taking proactive initiatives to resolve recent pump station 5 disputes between the local community and government.

Q3 2021 Production

PetroTal averaged oil production of 9,508 bopd for Q3 2021. This was within 2% of revised Q3 2021 guidance of 9,697 and an 8% increase over Q2 2021 average production of 8,839 bopd. PetroTal exited Q3 2021 producing 15,131 bopd, an 89% increase over exit Q2 2021 production of 8,009 bopd. Q4 2021 production to date is 14,218 bopd, inclusive of approximately 5.4% of usual downtime.

Well 8H Update

Well 8H continues to perform at exceptional levels. During the first 11 days of October, 8H has averaged 7,485 bopd. As of October 11, 2021, the 8H well has produced over 290,000 barrels at an estimated $45/bbl netback and has now achieved payout on its $11.8 million capital cost.

Well 7D Update

Well 7D continues to exceed management expectations from a deviated drilling perspective. 7D is still averaging more than 1,300 bopd. Since commencement of production in early May 2021, 7D has produced approximately 400,000 barrels and has generated cash flow approximately double its capital cost since coming online five months ago.

Well 9H Update

Well 9H has reached its third week of drilling, is executing to plan, and trending slightly ahead of completion schedule with production commencement expected in the last half of November 2021.

CPF-2 On Track

The final crude processing phase for CPF-2 will be commissioned and operational by mid November 2021. It is expected to be fully operational by mid January, 2022. No additional COVID-19 delays have materially impacted the field since previously announced in late summer.

Brazil Route Proving Valuable

PetroTal executed an oil shipment through Brazil in Q3, 2021 for 226,000 barrels. PetroTal estimates it may ship two cargos via the Atlantic route in Q4 2021.

Strong Q3 2021 Exit Liquidity

At September 30, 2021, PetroTal had a cash position of approximately $58 million, of which $31 million is unrestricted, $20 million is dedicated to accretive acquisitions and $7 million is posted as collateral for commodity price hedges. The $16 million reduction in overall liquidity was due to increased spending related to the planned capex program and a net increase in accounts receivable.

At September 30, 2021, accounts receivable from current oil sales, including VAT, were $22 million, and accounts payable were approximately $37 million. Pursuant to contractual terms with suppliers, approximately $3.7 million (11%) of the accounts payable balance is due after Q4 2021. Ongoing payments will be managed from expected oil field revenues and internal cash resources. The Company maintains access to an additional $25 million from the bond issue for potential acquisitions and development drilling.

Community Protest Update

Protests at pump station 5 have shut down the Northern Peruvian Pipeline ("ONP") and operations on October 5, 2021. Since then, PetroTal has been involved with both the government and communities to help resolve the issue peacefully.

PetroTal supports the struggle of the indigenous community and continues to promote a peaceful and long-lasting resolution in the very near future, especially given the new Government's public commitment to all the communities of the Loreto Region where the Company operates.

In the meantime, PetroTal continues to produce at normal rates, delivering oil to Station 1 plus exports through Brazil, and expects to have sufficient oil storage to maintain operations during the disruption at Petroperu's pipeline.

Updated Corporate Presentation. Please see PetroTal's website for an updated version.

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

"On behalf of PetroTal, I would like to thank all our employees and contractors for another outstanding quarter. We are continuously reminded that alignment between the government, communities, and PetroTal ensures an efficient continuance of PetroTal's value proposition. PetroTal continues to support negotiations between local communities and government social profit initiatives. We are optimistic all stakeholders will find resolutions in short order."

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSXV: TAL) (AIM: PTAL) and (OTC Pink: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the second largest crude oil producer in Peru. The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.

For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:

Douglas Urch
Executive Vice President and Chief Financial Officer
Durch@PetroTal-Corp.com
T: (713) 609-9101

Manolo Zuniga
President and Chief Executive Officer
Mzuniga@PetroTal-Corp.com
T: (713) 609-9101

PetroTal Investor Relations
InvestorRelations@PetroTal-Corp.com

Celicourt Communications
Mark Antelme / Jimmy Lea
petrotal@celicourt.uk
T : 44 (0) 208 434 2643

Strand Hanson Limited (Nominated & Financial Adviser)
James Spinney / Ritchie Balmer
T: 44 (0) 207 409 3494

Stifel Nicolaus Europe Limited (Joint Broker)
Callum Stewart / Simon Mensley / Ashton Clanfield
Tel: +44 (0) 20 7710 7600

Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: +44 (0) 7711 627449

READER ADVISORIES

FORWARD-LOOKING STATEMENTS: This press release contains certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; oil production levels, well payout production and the ability of the Company to achieve near term production targets; anticipated future production and revenue; resumption of operation of the ONP and the timing thereof; PetroTal's access to exports routes through Brazil; the Company's expectations regarding netbacks and cash flow; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to expected production, reserves, recovery, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, the ability of the Ministry of Energy to effectively achieve its objectives in respect of reducing social conflict and collaborating towards continued investment in the energy sector, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, including pursuant to hedging arrangements, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company's growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price volatility, price differentials and the actual prices received for products, exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remains unknown, rapid spread of the COVID-19 virus may continue to have a material adverse effect on global economic activity, and may continue to result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the most recent management's discussion and analysis and the most recent annual information form which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: References in this press release to short‐term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. The Company cautions that such results should be considered to be preliminary.

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51 101"). All references to Brent indicate Intercontinental Exchange ("ICE") Brent.

NON-GAAP MEASURES: This press release contains financial terms that are not considered measures under generally accepted accounting principles ("GAAP") such as netback that do not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. Management uses these non-GAAP measures for its own performance measurement and to provide shareholders and investors with additional measurements of the Company's efficiency and its ability to fund a portion of its future capital expenditures. Netback is calculated by dividing net operating income by barrels sold in the corresponding period.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production and well payout production, 2021 capital program and budget, cash flow and components thereof, 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 press release was approved by management as of the date of this press release and was included for the purpose of providing further information about PetroTal's anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, 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 press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including NI 51-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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