PetroTal provides Operational Update; Oil production reaches 20,000 bopd

Pipeline Settlement Framework for Pump Station 5

Calgary, AB and Houston, TX - December 16, 2021-PetroTal Corp. ("PetroTal" or the "Company") (TSX-V: TAL, AIM: PTAL and OTC: PTALF) is pleased to provide the following updates:

Achieved 20,000 bopd Production Level

PetroTal has achieved a trailing 5-day unconstrained production rate ending December 15, 2021, of approximately 20,200 barrels of oil per day ("bopd").  With wells 8H and 9H producing over 6,300 bopd and 8,200 bopd respectively, PetroTal was able to achieve its long-standing goal of exceeding 20,000 bopd much earlier than anticipated and previously guided.  PetroTal has reached this milestone only four years after commencing operations at the Bretana oil field in early 2018, an indication of operational excellence, perseverance and teamwork. 

Robust Production from Well 9H

Well 9H is delivering a strong initial production profile having averaged approximately 8,200 bopd over the last 10 days, and trending very close to the performance of well 8H.

Well 10H Commences Drilling

PetroTal commenced drilling well 10H on December 11, 2021.  This long-reach horizontal well is similarly located to well 9H and is estimated to cost $13.9 million with a targeted completion date in early February 2022. 

Settlement Framework Reached at Pump Station 5

PetroTal advises that a joint framework was reached between the communities, Ministry of Energy and Mines, and Petroperu, that demonstrates trust and a commitment to ongoing dialogue, which has resulted in the expected return of Pump Station 5 back to Petroperu on December 16, 2021, as a gesture of goodwill toward longer term solutions.  Once Petroperu restarts operations at Pump Station 5, it will take approximately one week to complete the required inspections needed to fully recommence oil throughput in the Northern Peruvian Pipeline ("ONP").  Based on this forecast, it is still likely PetroTal will have to constrain production after December 16, 2021, for up to two weeks, to manage storage capacity, at which time it expects to go back to levels near 20,000 bopd.

Brazilian Export Update

In November and December, PetroTal will export nearly 320,000 barrels of oil through the Brazil sales route.  Commencing in January 2022, estimated Brazilian oil exports will be approximately 240,000 barrels monthly and expected to increase further in Q2 2022.

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

"We are very pleased at the progress made at Pump Station 5 and the demonstration of trust and goodwill shown by the communities.  This, together with the initiatives PetroTal is pursuing, is expected to lead to long term stability for the region at a critical time for the new Talara refinery that is expected to start operation in 2022, Peruvian producers, the local communities, and Petroperu.  I would also like to thank our team for their dedication and perseverance over the past four years enabling PetroTal to achieve our original 20,000 bopd goal.  I am humbled by the expertise and drive our team continues to demonstrate through unprecedented operating conditions.  Additionally, I'd like to thank our shareholders for their ongoing support, patience and confidence as we continue development of the prolific Bretana oil field."

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSXV: TAL, AIM: PTAL and OTC: 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

[email protected]

T: (713) 609-9101

Manolo Zuniga

President and Chief Executive Officer

[email protected]

T: (713) 609-9101

PetroTal Investor Relations

[email protected]

Celicourt Communications

Mark Antelme / Jimmy Lea

[email protected]

T : 44 (0) 208 434 2643

Strand Hanson Limited (Nominated & Financial Adviser)

Ritchie Balmer / James Spinney / Robert Collins

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; and the impact of social disruption on the Company's operations, including a potential field shutdown at Bretana. All statements other than statements of historical fact may be forward-looking statements. 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. 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. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2020 and management's discussion and analysis for the three and nine months ended September 30, 2021 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.

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.