Mr. Manolo Zuniga reports

PETROTAL ANNOUNCES Q2 2026 FINANCIAL AND OPERATING RESULTS

Petrotal Corp. has released its operating and financial results for the three months ended June 30, 2026. 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 ended June 30, 2026, which are available on SEDAR+ and on the company's website.

Key highlights:

• Average Q2 2026 sales and production of 11,969 and 12,557 barrels of oil per day (bopd), respectively;
• H1 (first half) 2026 production averaged 13,726 bopd, tracking 3 per cent ahead of budget expectations;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $43.5-million ($39.98 per barrel) in Q2 2026 and $78.7-million ($33.05 per barrel) in H1 2026;
• Free funds flow of $32.4-million ($29.72 per barrel) in Q2 2026 and $58.1-million ($24.41 per barrel) in H1 2026;
• Net income of $4.8-million ($4.40 per barrel), net of a $10.2-million impairment charge relating to the sale of the Amazonia-1 drilling rig;
• Capital expenditures of $8-million, bringing 2026 year-to-date capital investment to $15.6-million;
• Unrestricted cash of $105.4-million, an increase of $6.1-million year over year.

Manuel Pablo Zuniga-Pflucker, president and chief executive officer, commented: "Petrotal delivered strong second quarter results, with adjusted EBITDA of $43.5-million and free funds flow of $32.4-million, reflecting stronger realized pricing and continued cost discipline. Production of 12,557 bopd tracked slightly ahead of our internal plan, putting us in good position to meet our annual production and EBITDA guidance. As part of our ongoing work program at Bretana, we recently commenced a pulling campaign to replace tubing and pumps on up to five wells, which will help mitigate forecast production declines in the second half of the year.

"I am happy to report that preparations for our development drilling campaign are progressing on schedule. The Estrella drilling rig is now in Peru and we have increasing confidence that drilling will resume in accordance with our October target date. Delivery on these key project milestones reflects strong execution by our operations and drilling teams and lays the groundwork for a return to production growth in 2027. Looking ahead, we remain focused on disciplined capital allocation and advancing our drilling campaign as we work toward that objective."

Additional financial and operational updates during and subsequent to the quarter ended June 30, 2026

Block 95 update

Petrotal produced an average of 12,190 bopd from the Bretana field (Block 95; Petrotal 100-per-cent working interest) in Q2 2026. Bretana production declined by approximately 2,300 bopd relative to the prior quarter, mainly due to natural declines and in line with expectations. Los Angeles field production (Block 131; Petrotal 100-per-cent working interest) averaged 367 bopd in Q2 2026, a decline of approximately 50 bopd compared with the prior quarter. In the first six months of 2026, Petrotal's corporate production averaged 13,726 bopd, approximately 3 per cent ahead of budget expectations.

In mid-July, Petrotal commenced a pulling campaign at the Bretana field. The objective of the work program, which is classified as an operating expenditure, is to replace production tubing and potentially electric submersible pumps in up to five wells, with a view to improving field production deliverability in the second half of 2026. The cost and production downtime associated with the pulling campaign are fully contemplated in Petrotal's 2026 budget. Bretana field production averaged 11,107 bopd in July, 2026.

Petrotal continues to advance preparations for its H2 2026 development drilling campaign, which remains on track to begin in October. Construction of the L2E platform, which is being built to accommodate surface infrastructure for the new wells, was 78 per cent complete as of July 21. The Estrella drilling rig, which Petrotal has contracted for an eight-well drilling campaign, entered Peru from Leticia, Colombia, on Aug. 4 and, following a planned barge transshipment in Iquitos, is expected to arrive at Bretana by the end of the month. The company intends to notify the market when the first well has spud.

Erosion control project

As disclosed previously, Petrotal has largely suspended construction activities for the erosion control project, after terminating its contract with the previous construction consortium in March, 2026. The company commenced a tender process to source new contractors for the project in May, 2026. That process remains continuing, with updated bids now expected by the end of August. Once Petrotal has agreed to terms with a new contractor, it will guide the market on the cost and time frame to project completion.

Cash and liquidity update

Petrotal ended Q2 2026 with a total cash position of $136.9-million, of which $105.4-million was unrestricted. This compares with $128.3-million total cash ($104.4-million unrestricted) at the end of Q1 2026. The increase in cash reflects strong operating cash flow and $13.4-million of net proceeds from the Amazonia-1 rig sale, offset by the retirement of the $16.9-million lease liability associated with the rig and routine debt service.

Petrotal did not initiate any new production hedges during Q2 2026. As at June 30, 2026, the company's corporate hedging program consisted of four three-way collars covering approximately 1.1 million barrels through March, 2027, with floor prices ranging from $55 to $65 per barrel, ceiling prices ranging from $72.10 to $73.75 per barrel and caps ranging from $92.10 to $93.75 per barrel. As of June 30, 2026, these contracts had a fair value of negative $2.2-million.

Q2 2026 webcast for Aug. 6, 2026

Petrotal's management team will host a webcast to discuss Q2 2026 results on Aug. 6, 2026, at 9 a.m. CT (Houston) and 3 p.m. BST (London). Please register on-line.

About Petrotal Corp.

Petrotal is a publicly traded, triquoted (Toronto Stock Exchange: TAL) (AIM: 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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