Mr. Manuel Zuniga-Pflucker reports

PETROTAL ANNOUNCES Q4 AND FULL YEAR 2025 RESULTS

Petrotal Corp. has released its operating and financial results for the three months and year ended Dec. 31, 2025. All amounts herein are in U.S. dollars unless stated otherwise.

Selected financial and operational information outlined above should be read in conjunction with the company's unaudited consolidated financial statements and management discussion and analysis for the three months and year ended Dec. 31, 2025, which are available on SEDAR+ and on the company's website.

Key highlights:

• Average Q4 2025 sales and production of 15,059 and 15,258 barrels of oil per day, respectively;
• Average full-year 2025 sales and production of 19,212 bopd and 19,473 bopd, respectively, representing increases of approximately 9 per cent relative to full-year 2024;
• Generated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $18.5-million ($13.38 per barrel) in Q4 2025 and $166.3-million ($23.71 per barrel) in full-year 2025;
• Annual net income of $44.2-million in full-year 2025, compared with $111.5-million in full-year 2024;
• Development capital expenditures (capex) of $15.3-million in Q4 2025 and $75.6-million in full-year 2025, compared with $50.1-million in Q4 2024 and $172.1-million in full-year 2024;
• Annual free funds flow of $90.4-million ($12.90 per barrel) in full-year 2025, compared with $74.1-million ($11.54 per barrel) in full-year 2024;
• Petrotal paid total dividends of 4.5 cents per share and repurchased 4.9 million common shares in 2025, representing approximately $44-million of total capital returned to shareholders (compared with $65-million in 2024) prior to pausing distribution programs in mid-November, 2025;
• Total cash increased to $139.1-million at year-end 2025, compared with $114.5-million at year-end 2024.

Manuel Pablo Zuniga-Pflucker, president and chief executive officer, commented: "Petrotal reported solid financial and operational results in 2025, increasing our production by an average of 9 per cent over 2024, while returning $44-million to shareholders through dividends and share buybacks. Despite substantially weaker oil pricing in 2025, we generated $90-million of free funds flow and ended the year with almost $140-million of cash on our balance sheet. We also invested $20-million to advance our erosion control project, after wrapping up our development drilling program in the first quarter of the year. Looking ahead, we are actively evaluating plans to optimize and expand water handling capacity at Bretana, which is key to restoring production output from wells we have already drilled, and to accommodate new production from our upcoming development drilling program.

"To that end, I am pleased to report that our board of directors has made the important step of approving a tender award to a third party drilling contractor, which keeps us on schedule to resume development drilling at Bretana by October, 2026, as we have previously guided. This week, we have also made the decision to terminate our contract with the consortium that is managing the erosion control project. The project has fallen behind schedule, and we felt a change in management was required to complete the project in a safe, timely and cost-effective manner.

"Recent strength in oil pricing is welcome, but cost reductions and capex optimization remain a key focus of our board and management team in 2026. We are continuing to target significant reductions in operating costs and run-rate G&A [general and administrative] expense over the course of 2026. I would like to thank shareholders for their continued support as well as Petrotal's board of directors and the rest of the Petrotal team for their continued valuable contributions to our success."

Additional financial and operational updates during and subsequent to the quarter ended Dec. 31, 2025

Operations update

As of March 23, Petrotal's group production averaged approximately 15,000 bopd year to date in 2026, including 14,550 bopd from Block 95 (Bretana) and 450 bopd from Block 131 (Los Angeles). The Bretana field continues to produce in line with the expectations laid out in Petrotal's 2026 annual guidance, published on Jan. 20, 2026. Field production remains constrained by water reinjection capacity, which currently stands at approximately 170,000 barrels of water per day. During the first week of March, 2026, Petrotal was producing oil from a total of 15 horizontal wells, while five horizontal wells remained shut in due to water-handling constraints. Petrotal's operations team is actively reviewing Bretana's facilities configuration with a view to raising both oil production and water reinjection capacity as soon as possible.

Petrotal's top operational priority is the resumption of development drilling at Bretana. To that end, Petrotal's board of directors has approved a tender award to a third party drilling contractor. The company is currently negotiating final contract terms and expects to begin the process of importing a drilling rig to Peru in Q2 2026. Current expectations are for the next Bretana development well to spud by October, 2026, in line with prior disclosure. Petrotal will continue to provide updates on the status of its development drilling program as necessary.

Erosion control project

Petrotal expensed $13.1-million and capitalized $7.7-million for erosion control in 2025, bringing total cumulative investment in the project to $31.1-million as of year-end 2025. Given that execution of the erosion control project has fallen behind schedule, Petrotal has notified the construction consortium of its intent to terminate the project contract and has initiated a procurement process to secure new contractors to complete the project. The company is currently soliciting bids and expects to award a new construction contract by the end of May, 2026, at which time it will be in a better position to provide updated estimates on the total project cost and expected completion date.

Approval of modified environmental impact assessment for Block 95

On March 18, 2026, Peru's National Environmental Certification Service for Sustainable Investments (Senace) approved the modification of the detailed environmental impact study (MEIA-d) for the expansion of the Bretana Norte oil field at Block 95. MEIA approval is a critical milestone enabling the company to proceed with its planned development drilling program at Bretana later this year. The field development plan approved within the MEIA covers the drilling of up to 23 additional production wells and five additional injection wells, supporting potential oil production of up to 50,000 bopd and handling capacity of approximately 800,000 barrels per day of water.

Cash and liquidity update

Petrotal ended Q4 2025 with a total cash position of $139.1-million, of which $112.4-million was unrestricted. The company's cash position was essentially flat relative to the prior quarter but has increased by approximately $25-million compared with the same period in 2024, largely due to proceeds from the BanBif/Cofide loan, which is being used to finance the erosion control project.

Since Dec. 31, 2025, Petrotal executed hedges on 1.5 million barrels of forward oil production through March, 2027, covering approximately 24 per cent of estimated 2026 production volumes. These hedges consist of costless collars with a Brent floor price of $60 per barrel, a ceiling of $73 per barrel and a cap of $93 per barrel. As of March 24, 2026, the hedges have a mark-to-market value of negative $10.4-million.

Q4 2025 webcast for March 26, 2026

Petrotal's management team will host a webcast to discuss Q4 2025 results on March 26, 2026, at 9 a.m. CT (Houston) and 2 p.m. GMT (London).

About Petrotal Corp.

Petrotal is a publicly traded, triquoted (Toronto Stock Exchange: TAL) (Alternative Investment Market: PTAL) (OTCQX: PTALF) oil and gas development and production company domiciled in Calgary, Alta., focused on the development of oil assets in Peru. Petrotal's flagship asset is its 100-per-cent working interest in the Bretana Norte oil field in Peru's Block 95, where oil production was initiated in June, 2018. In early 2022, 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.

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