PetroTal Announces Initial Production for Well 12H and Other Corporate Updates

 Naturally flowing production of 3,650 bopd (off pump)

Social Trust Addendum approved

Production restored to 20,000 bopd

Calgary, AB and Houston, TX - December 28, 2022-PetroTal Corp. ("PetroTal" or the "Company") (TSX-V: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to announce the successful testing results of well 12H, the Company's fourteenth producing well at the Bretana oil field.

Well 12H highlights

·    Well 12H has tested naturally, off pump, at approximately 2,900 barrels of oil per day ("bopd") over its first 10 days of production since December 16, 2022;

·    Current production of well 12H, under natural flow, has increased to approximately 3,650 bopd as at December 27, 2022, indicating the well continues to clean out completion fluid; 

·    With the field currently producing at approximately 20,000 bopd limited by export capacity, the technical team has delayed starting the already installed electro-submersible pump ("ESP") on well 12H to gather data under natural flow conditions and to prevent production constraints on other wells;

·    Once the ESP is activated, the 12H well is expected to produce similarly to the neighboring 13H well, which averaged 6,451 bopd during its first 30 days online, and has averaged approximately 4,000 bopd during the past 10 days;

·    The 12H well confirms the possibility of drilling another line of wells south of the 12H and 13H wells; and,

·    The total cost of the 12H well is estimated at $15.2 million, slightly higher than budget due to directional drilling tool complications.

Social Trust Addendum Update

PetroTal is pleased to announce that on December 20, 2022, it received board approval to incorporate the 2.5% social trust addendum into the Block 95 License Contract.  Perupetro's board have also approved the social trust addendum on December 22, 2022.  Now the proposed addendum will go through the process of receiving approval from the Ministry of Energy & Mines and the Economy and Finance Ministry before Peru's President can sign the Supreme Decree authorising Perupetro to amend the Block 95 License Contract.  This is expected to be completed by the end of the second quarter 2023.  PetroTal will continue to set aside funds in a separate bank account as per the agreed social trust addenda.

Current Production Now At 20,000 bopd

The Company has averaged approximately 20,000 bopd since December 16, 2022, with an estimated production capacity of over 24,000 bopd.  With export capacity now reestablished, most of the Brazilian barges are now arriving in Bretana, allowing the Company to increase production.  Once filled, they will travel to Manaus, Brazil to unload.  It is possible that this travel schedule may create export constraints for the Company early in 2023 while the barging fleet returns to optimal route travel times.

2023 Guidance Release

PetroTal expects to release its 2023 production and capital budget in mid January, 2023, and will present at the Pareto Securities 18^th Annual E&P Independents Conference in London on January 18, 2023.

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

"We are finishing 2022 with 20,000 bopd of production and 24,000 bopd of production capacity, including 12H rates flowing naturally with the ESP yet to be activated.  With the Social Trust Fund in its final setup stage, the PetroTal team will focus on enhancing our export capabilities to produce at full capacity." 

ABOUT PETROTAL

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

OIL REFERENCES: All references to "oil" or "crude oil" production, revenue or sales in this press release mean "heavy crude oil" as defined inNI 51-101. All references to Brent indicate Intercontinental Exchange ("ICE") Brent.

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; drilling, completions, workovers and other activities and the anticipated costs and results of such activities; PetroTal's revised 2022 guidance and budget including, but not limited to, estimated or anticipated production levels, capital expenditures and drilling plans; the intention to redeem the outstanding bonds; PetroTal plans to deliver strong operational performance and to generate free cash flow and growth; capital requirements and the Company's ability to access capital on desirable terms and within required timelines; the ability of the Company to achieve drilling success consistent with management's expectations; the ability of the Company to achieve near term production targets and operate at unrestricted levels; anticipated future production and revenue; drilling plans including the timing of drilling, commissioning, and startup and the impact of delays thereon; oil production levels, including average and exit production in 2022; sales expansion through alternative exports routes, including barging and trucking; the Company's proposals for collaboration with local communities; and future development and growth prospects. 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, impact of inflation on costs, 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, wars (including Russia's war in Ukraine), 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. The ongoing war between Russia and Ukraine has the potential to threaten the supply of oil and gas from the region. The long-term impacts of the war between these nations remains uncertain. 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, increased operating and capital costs due to inflationary pressures, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to the risk factors identified in the Corporation's annual information form (filed April 28, 2022) and MD&A (filed August 25, 2022) (the "MD&A"), 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.