PetroTal (TAL) Status Update summary

2025 Production and Financial Guidance

• Targeting average production of 21,000–23,000 bopd, a 24% increase over 2024 levels, with cumulative production since inception reaching 22 mmbbls.

• Projected 2025 EBITDA of $240–$250 million at $75/bbl Brent, net of $30 million in non-recurring erosion control OpEx.

• After-tax cash flow projected at $200 million, supporting $60 million in free cash flow after $140 million in capex.

• Free cash flow supports a stable quarterly dividend of $0.015/share, share buybacks, and potential top-up dividends if performance exceeds plan.

• Minimum unrestricted cash liquidity of $60 million to be preserved, with a strong year-end 2024 cash position of $115 million.

Capital Expenditure and Infrastructure Plans

• 2025 capex budget of $140 million includes four development wells at Bretaña and Los Angeles fields, with $55 million for drilling/workover and $60 million for infrastructure.

• Major infrastructure upgrades expand fluid handling capacity to 32,000 bopd and include new well cellars.

• Erosion control project at Bretaña totals $65–$75 million over 2024–2026, with $35–40 million invested in 2025 and 75% expensed as OpEx.

• Capex guidance includes $8.5 million in capitalized erosion control costs.

• New drilling rig imported to Peru, expected to reduce per-well costs by 10–15% and to be deployed at Los Angeles field by mid-2025.

Growth Strategy and Field Development

• Bretaña field remains the core asset, with 100 mmbbls of 2P reserves and significant free cash flow potential until lease expiration in 2041.

• Processing and water handling capacity being expanded to support higher recovery and future growth.

• Additional $400 million in non-drilling capex planned for water handling and facilities as the field matures.

• Flexibility in maintenance and capacity allows for sustained production and readiness for new export routes.

• Consistent reserves growth: 2P reserves plus cumulative production now at 120 mmbbls, with a 2P after-tax PV10 valuation of $1.6 billion.