PetroTal AIM:PTAL Stock Report

Petrotal Corp. Reduces Production to Ensure Field Safety and Manage Storage Levels Due to Social Protests At Petrotal's Loading Dock

PetroTal Corp. advised that it has reduced production to ensure field safety and manage storage levels due to social protests at PetroTal's loading dock. On February 28, 2022 a small group from the Asociación Indígena de Desarrollo y Conservación de Bajo Puinahua commenced gathering outside the Bretana oilfield that led to access to the Company's loading dock being blocked. To ensure employee /contractor safety and minimize environmental risk, the Company has constrained its production level to approximately 4,000 barrels of oil per day, accumulating into field storage facilities, while aiding in protest negotiations. AIDECOBAP continues to push for fulfillment of their demands from the government. AIDECOBAP claims they are being persecuted by the government for protesting their requests. They are also requesting the establishment of an indigenous trust to allow them to execute projects whose funding was approved by the government in late 2020 to reduce the basic needs gap in local communities. Lastly, AIDECOBAP is also requesting that the government expedite the formalization of the Bretana 2.5% social fund, offered by PetroTal, into the Block 95 license contract. For the second fortnight of January and all of February 2022, PetroTal had been segregating the 2.5% social fund into a separate bank account, but due to the current protests and resulting production curtailment, no funds will be allocated for the upcoming fortnight as per the guidelines of the social trust. The Company is also monitoring the progress of necessary maintenance repairs to the Northern Peruvian Pipeline . While the repairs have been ongoing, PetroTal has been selling oil through the Brazil export route. Last month the Company completed a 240,000 barrel oil sale through Brazil, for the first time without diluent blending, which will have a positive impact on diluent costs in First Quarter 2022.

PetroTal Corp. Announces Drilling Update

PetroTal Corp. Announces Significant Increases in 2021 Year-End Oil Reserves

PetroTal Corp. announced the results of its 2021 year-end reserve evaluation by Netherland, Sewell & Associates Inc. ("NSAI") for the Bretana oil field, operated 100% by PetroTal (the "NSAI Report"). All currency amounts are in United States dollars (unless otherwise stated) and comparisons refer to December 31, 2020. Significant increases in all reserve categories: Proved ("1P") reserves increasing by 68% to 37.4 million barrels. Net Present Value (before tax, discounted at 10% ("NPV-10")) is $724 million ($19.38/bbl) for 1P reserves; Proved plus Probable ("2P") reserves increasing by 53% to 78 million barrels. Net Present Value (before tax, discounted at 10% ("NPV-10") is $1.39 billion ($17.82/bbl) for 2P reserves; and, Proved plus Probable plus Possible ("3P") reserves increasing by 39% to 147 million barrels. NPV-10 values have increased 129% for 1P and 67% for 2P, over year-end 2020, due to reserves growth and an increase in the Brent price forecast used by NSAI at year-end 2021; Material progression of after tax NPV-10 per share to US$0.69/share, US$1.23/share, and USD 2.00/share for 1P, 2P, and 3P categories; 2021 Proved Developed Producing ("PDP") reserves increased 35% to 16.15 million barrels, representing 43% of 1P reserves, reflecting an attractive ratio of base production to low risk drilling targets; Three key reserves parameters had material positive upgrades in the NSAI Report, compared to the prior year: Original Oil in Place ("OOIP"): Increases of 5%, 7%, and 7% to 247, 389, and 618 million barrels, respectively, for the 1P, 2P and 3P cases; Due to continued drilling success and additional subsurface data, 1P, 2P and 3P total booked well counts for 2021 are 17, 22, and 29, respectively, up materially from the 2020 well counts of 11, 15, and 20; and, With additional subsurface similarities to Bretana's analogous fields now recognized, all three recovery factor percentages materially increased in 2021 to 18% (from 11%), 22% (from 15%), and 25% (from 19%) for 1P, 2P, and 3P reserve categories, respectively. 2P Future Development Capital ("FDC") increased $96 million or 49% to $289 million from 2020 reflecting an additional 7 wells booked at year-end 2021 and the required associated water disposal capacity needed to accommodate higher anticipated flush and run rate production volumes; 2021 Finding and Development ("F&D") cost per barrel of $6.63, $4.68 and $3.85 for 1P, 2P, and 3P reserve categories, respectively. The 1P and 2P per barrel costs were reduced 42%, and 6% from year-end 2020.

PetroTal Corp. Announces Record Ten Day Production Level for Well 10H

PetroTal Corp. announced the Company's well 10H ("10H"), which commenced production on January 30, 2022, has set a new internal daily production record with an average standalone 10 day production level of 10,050 bopd.