PetroTal's Second Annual ESG Report: Responsible, Material, and Sustainable ESG Initiatives

PetroTal Recognized for ESG Efforts

Conditional Approval Received for Graduation to the Toronto Stock Exchange

Calgary, AB and Houston, TX - January 26, 2023 - PetroTal Corp. ("PetroTal" or the "Company") (TSX-V: TAL, AIM: PTAL and OTCQX: PTALF) is pleased to announce the release of PetroTal's 2021 ESG Report, which has been posted on the Company's website (www.petrotal-corp.com).

PetroTal is committed to providing a sustainable business plan that delivers meaningful opportunities for all stakeholders.  This includes dedicating significant attention, consideration and resources to environmental stewardship and social responsibility, with a constant and uncompromising commitment to safety, ethics and transparency.

2021 marked a significant step forward in terms of ESG reporting and standards achieved.  The Company is now calibrating its reporting to the Global Reporting Initiative ("GRI") and the Sustainability Accounting Standards Board ("SASB") frameworks, as well as for the United Nations' Sustainable Development Goals ("SDG"). 

In just five years, the Company has increased production from zero to being capable of producing over 25,000 barrels of oil per day.  ESG is an integral part of PetroTal's short and long-term strategy and decision making.  The key highlights from the Company's second annual ESG report are noted below.

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

"We have materially advanced our ESG initiatives from the inception of our business plan only a few years ago.  We are now calibrating our strategy to the global standards for ESG that are impactful to our four pillars of sustainability.  We are proud that our Peruvian subsidiaries are led and operated by Peruvians, committed to its people and communities, and, consequently, to the sustainable development of Peru.  We are extremely pleased with the sustainable footprint our operations have in the remote and environmentally sensitive areas near our field, and we are instilling a continuous improvement culture within the team.  We look forward to reporting further ESG milestones to the market over the coming months."

2021 ESG report highlights:

·    The report presents an in-depth 2030 sustainability plan underpinned by a commitment to the environment, safe operations, transparent governance, and shared values with our communities and vendors, for the benefit of all;

·    This is the Company's second annual ESG report, which details how PetroTal's activities contribute towards achieving 11 of the 17 SDG, which are the universal call to action to end poverty and protect the planet in a peaceful and prosperous way; 

·    Near-term focus on promoting a safety culture that enhances existing policies to promote and reward safety advancements generated by our employees and consultants;

·    Transparent leadership in Peru for employee empowerment and accountability, equality, diversity and retention by fostering and rewarding employee innovation; 

·    A commitment to local value creation with a strong Peruvian employment history, comprising a talented and local Peruvian workforce, without prejudice irrespective of race, disability, sexual orientation, or age;

·    Enhanced governance for the Company with the addition of two new independent Board members with significant leadership experience in Peru and the international oil and gas industry; and

·    Ongoing success with our 20-year active biodiversity case study in the Pacaya Samiria National Reserve, ensuring zero net loss of biodiversity resulting from the nearby Bretana oil and gas operations. 

Other key milestones:

·    Zero hydrocarbon spills and no associated oil volume lost in 2021; and,

·    Delivered a peer-leading Scope 1 carbon intensity footprint of 11.4 kg/bbl for 2021, equating to just over 37,000 tones of Scope 1 carbon emissions for 2021, with significant opportunities in future years for reduction through technology and operating innovations.

PetroTal recognized for ESG Efforts:

PetroTal is pleased to announce it has recently been awarded two ESG awards.  The first, in biodiversity conservation for its Biodiversity Monitoring Program and the second, for its Fishing Innovation Program in the Puinahua District, both from the Peruvian National Mining, Oil and Energy Society ("SNMPE").  For more information on these projects please refer to our 2021 ESG report now posted on the Company website.

PetroTal receives conditional TSX graduation approval:

PetroTal is pleased to announce that it has received conditional approval from the Toronto Stock Exchange ("TSX") to graduate its listing from the TSX Venture Exchange ("TSXV") to the TSX.  Final approval of the listing is subject to the Company fulfilling certain standard and customary conditions required by the TSX.  PetroTal's management team is working diligently to satisfy such listing conditions.  A timeline for the graduation will be announced once the Company receives final approval.  Transition to the TSX listing will be seamless for shareholders, and there will be no change to the trading symbol "TAL" or CUSIP.

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

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; the impact of social disruption on the Company's operations; drilling, completions, workovers including of oil producing and water disposal wells and the results and timing of such activities;  and other activities and the anticipated costs and results of such activities; PetroTal's 2023 budget and financial/operational guidance; PetroTal's anticipated operational results for 2023 including, but not limited to, anticipated production levels, capital expenditures and drilling plans; the Company's intentions with respect to return of capital,  including returning $100 million to shareholders using dividends and share buybacks; the commencement of a normal course issuer bid and receipt of stock exchange approval thereof; the dividend policy; PetroTal's liquidity and financial position; the capacity for increased production in the event additional sales capacity is identified; PetroTal's plans to deliver strong operational performance and to generate free cash flow and growth; capital requirements; 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 2023;  sales expansion through alternative exports routes, including barging; the Company's proposals for collaboration with local communities and capital contributions in relation thereto including in respect of its investments in community, education, and support programs; 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", "target", "potential", "will", "should", "continue", "may", "objective" and similar expressions. Without limitation of the foregoing, future dividend payments and share buybacks,, if any, and the level thereof, are uncertain, as the Company's return of capital and dividend policy and the funds available for the payment of such activities from time to time is dependent upon, among other things, free cash flow financial requirements for the Company's operations and the execution of its growth strategy, fluctuations in working capital and the timing and amount of capital expenditures, debt service requirements and other factors beyond the Company's control. Further, the ability of PetroTal to pay dividends and buyback shares will be subject to applicable laws (including the satisfaction of the solvency test contained in applicable corporate legislation) and contractual restrictions contained in the instruments governing its indebtedness. 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 military actions 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. Ongoing military actions between Russia and Ukraine have the potential to threaten the supply of oil and gas from the region. The long-term impacts of the actions. 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 Company's annual information form for the year ended December 31, 2021 and management's discussion and analysis for the three and nine months ended September 30, 2022 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.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's budget and guidance, prospective results of operations, production and production capacity, free cash flow, revenue, NOI, adjusted EBITDA, debt repayment, liquidity, shareholder returns 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 National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in PetroTal's guidance. The Company's actual results may differ materially from these estimates.

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.