PetroTal Announces 2026 Guidance: Budget Prioritizes Liquidity Preservation, Cost Discipline, and Operational Optimization

Executive Summary

• PetroTal released its 2026 budget and operational guidance, targeting average production of 11,750‑12,250 bopd and Adjusted EBITDA of $30 million at a $60/bbl Brent price.
• The company approved a capital program of $80‑90 million, with $45 million earmarked for drilling two development wells at Bretaña by year‑end 2026 and additional funds for essential infrastructure, erosion control, and water handling projects.
• PetroTal will shift to a third‑party drilling contractor, plans to select the rig by Q1 2026 with a spud date of Oct 1 2026, and is exiting its lease on the Amazonia‑1 rig.

Key Details

• Production Guidance: 11,750‑12,250 bopd average for 2026 (≈12,000 bopd).
• Capital Expenditure: $80‑90 million total; breakdown:
• $45 M – drilling, rig mobilization & well facilities (2 Bretaña development wells).
• $16 M – essential continuity projects at Bretaña (camp habitability, safety upgrades).
• $15 M – erosion control investments (with $18 M of related opex).
• $10 M – other projects (water handling facilities, Ucawa field infrastructure, exploration).
• Liquidity Target: Minimum unrestricted cash liquidity of $60 million throughout 2026.
• Adjusted EBITDA Guidance: $30 million (net of $18 M erosion‑control expense included in opex).
• Drilling Strategy: Tender for third‑party contractor; selection expected Q1 2026, first well spud Oct 1 2026. Two development wells planned for 2026; eight‑well program to continue into 2027 aiming for >20,000 bopd plateau.
• Rig Exit: Amazonia‑1 rig no longer required; negotiations underway for orderly lease termination with associated cost provisions.
• Erosion Control Project: $33 M allocated in 2026 ($18 M expensed, $15 M capitalized); total project cost $65‑75 M over 2024‑2026, completion targeted Q4 2026.
• Sales & Marketing: 100% of Bretaña production sold via Brazil route under crude oil marketing agreements; Los Angeles production sold to PetroPeru refinery in Iquitos on short‑term contracts.
• Cost Reduction Program: Targeting significant reductions in operating expenses, run‑rate G&A, and capex to improve cost structure for a transition year.

Notable Quotes

“While the decision to suspend our dividend was difficult, this budget confirms it was necessary to navigate the transition through 2026 without compromising the long‑term value of the Bretaña field.” – Manuel Pablo Zuniga‑Pflucker, President & CEO

Materiality Assessment: Material – Positive (the release provides forward‑looking financial and operational guidance that is likely to influence investor decisions.)