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PetroTal Announces Approval of Environmental Impact Assessment to Develop the Bretana Oil Field and Signs Pipeline Contract with PetroPeru

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Calgary, Alberta and Houston, Texas–(Newsfile Corp. – May 29, 2019) – PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (“PetroTal” or the “Company“), a development and production company focused on oil assets in Peru, is pleased to announce the Company has received approval of the Environmental Impact Assessment (“EIA”) to fully develop the Bretaña oil field in Block 95. The Company also signed a contract with PetroPeru for access to the existing pipeline for transport of crude oil to commercial markets.

The approval of the EIA sets the stage for PetroTal to continue with the full field development of the Bretaña oil field, and allows the Company to fully develop its reserves. The EIA provides the authorization to drill future development wells and install needed production equipment and facilities. The EIA also sets forth the work needed to return the field to its original condition at the end of the license contract, including the safe and environmentally responsible removal of facilities and reforestation of the affected lands.

Additionally, the Company signed a contract with PetroPeru, the State owned oil company, who operates the North Peruvian Pipeline (“ONP”) to deliver oil to the Pacific coast via the pipeline. The contract is important to efficiently access commercial markets for the Company’s production. PetroTal currently sends oil to multiple markets via barges and trucks, however the use of the pipeline mitigates potential production constraints. The Company plans to access the ONP once it reaches 5,000 barrels of oil per day (“BOPD”) by mid year.

Manolo Zuniga, President and Chief Executive Officer, said:

“I personally congratulate the team in Lima who have worked diligently over the past year and a half to finalize this permit to develop the field and execute the ONP contract. It is a testament to the professional staff we have and the regard for safe and efficient operations that brought this to the finish line. Additionally, we want to thank each and every person who reviewed and commented at various levels of the government along the way. It is clear that our team here at PetroTal, most of whom are Peruvian, are working in the best interest of every stakeholder, from the government to employees, to shareholders, and the communities in which we work. PetroTal has a commitment to environmentally safe and efficient development of the assets that we have been tasked to develop. Furthermore, to sign the contract for use of the pipeline allows us to continue ramping production for the next several months. We have been working diligently to sign this agreement before bringing total Bretaña field production to 5,000 BOPD by mid-year, both of which are key milestones for PetroTal.”

ABOUT PETROTAL

PetroTal is a publicly‐traded, dual‐listed (TSXV: TAL) (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s development asset is the Bretaña oil field in Peru’s Block 95 where oil production was initiated in June 2018. 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 and exploiting the Bretaña oil field. More information on the Company can be found at www.PetroTal‐Corp.com.

For further information, please contact:

Greg Smith
Executive Vice President and Chief Financial Officer
Gsmith@Petrotal-Corp.com
T: (713) 609-9101

Manolo Zuniga
President and Chief Executive Officer
Mzuniga@Petrotal-Corp.com
T : (713) 609-9101

Mark Antelme / Jimmy Lea
Celicourt Communications
petrotal@celicourt.uk
T : 44 207 520 9261

James Spinney / Ritchie Balmer / Eric Allan
Strand Hanson Limited (Nominated & Financial Adviser)
T: 44 (0) 207 409 3494

John Prior / Emily Morris / George Price
Numis Securities Limited (Joint Broker)
T: +44 (0) 207 260 1000

Jonathan Wright / Hugh R. Sanderson
GMP FirstEnergy (Joint Broker)
T: +44 (0) 20 7448 0200

http://www.petrotal-corp.com/

FORWARD-LOOKING STATEMENTS: This press release may contain 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 the declaration of commerciality in respect of the Bretaña oil field. 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. In addition, statements relating to expected production, reserves, resources, 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 and resources described can be profitably produced in the future. 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, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal’s products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, 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, availability of required equipment and services and prevailing commodity prices. 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 and exchange rate fluctuations, legal, political and economic instability in Peru, 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. Please refer to the risk factors identified in the Company’s annual information form for the year ended December 31, 2017 and management’s discussion and analysis for the three and nine months ended September 30, 2018, 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/45131