First Oil Export Sale through Brazilian Terminal

PetroTal Completes First Oil Export Sale through Brazilian Terminal

Initial shipment of 106,000 barrels of oil into Brazil for export to the Atlantic region

Calgary, AB and Houston, TX - December 30, 2020-PetroTal Corp. ("PetroTal" or the "Company") (TSX‐V: TAL and AIM: PTAL) is pleased to announce the first export of Bretana oil into the Atlantic region through Brazil.  This provides PetroTal with an additional option to monetize oil sales, beyond the Company's existing important sales arrangements with Petroperu using the Northern Oil Pipeline ("ONP"), and to the Iquitos refinery. This will facilitate future oil production growth when the Company continues development of the Bretana oil field, targeting to reach 20,000 barrels of oil per day in Q1 2022.

This initial shipment of 106,000 barrels was arranged between PetroTal and Novum Energy Trading, a British Virgin Islands registered Corporation ("Novum"), to establish the viability of Bretana oil exports using the Amazon river through Brazil.  In early December 2020, a convoy of barges were loaded at Bretana and have now reached the terminal area near Manaus, Brazil for transfer into a tanker that will deliver the oil to the Atlantic region.

The sale was completed FOB at the Bretana field, where the oil was loaded onto the barges, with the invoice based on the February 2021 ICE Brent oil price forecast, net of transportation costs and export-related fees associated with the Brazilian - Atlantic coast route.  The net proceeds of US$2.7 million have been received and are not subject to any further price adjustments when this oil is sold to the end user by Novum.   

Based on the success of this initial export shipment, PetroTal and Novum have signed a letter of intent to establish long term sales through Brazil to complement the Company's existing sales arrangements with Petroperu's ONP and the Iquitos refinery.  Future export cargos through Brazil are expected to be at least 200,000 barrels and, with the volume efficiencies expected, will result in a higher netback per barrel for PetroTal.

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

"We are pleased that all parties worked seamlessly together to manage the logistics associated with this pilot shipment.  This represents a milestone achievement for PetroTal, since having the ability to manage oil sales to both the Pacific and Atlantic coasts provides for maximum flexibility and pricing.  The ONP will continue to play an important role in the Company's ongoing growth."

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL and AIM: PTAL) 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, and in early 2020 became the second largest crude oil producer in Peru.  Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107.  The Company's management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field.

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

Douglas Urch

Executive Vice President and Chief Financial Officer

[email protected]

T: (713) 609-9101

Manuel Pablo Zuniga-Pflucker

President and Chief Executive Officer

[email protected]

T: (713) 609-9101

Celicourt Communications

Mark Antelme / Jimmy Lea

[email protected]

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 / Rupert Holdsworth Hunt / Harry Baker

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, the members of the board of directors of the Company and the termination of the Relationship Agreement.  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. 

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.