Petrotal suspends quarterly dividend

Executive Summary

• Petrotal Corp.’s board has suspended the regular quarterly dividend indefinitely.
• The suspension reflects anticipated production declines and weaker oil prices in H1 2026, limiting cash available for both development drilling and shareholder returns.
• Management provided a preliminary 2026 production forecast of 12,000‑15,000 bbl/d and indicated that drilling at the Bretana field is unlikely to resume until mid‑year 2026.

Key Details

• Dividend Suspension: Board decision to halt quarterly dividend “until further notice” to preserve a minimum cash balance of $60 million.
• Financial Context: Since 2023, Petrotal returned ~$155 million to shareholders ($144 million in dividends). Bretana field has generated >$400 million free cash flow since 2020.
• Production Outlook: Expected average corporate production of ~12,000‑15,000 bbl/d for 2026, contingent on timing of Bretana drilling resumption (best case mid‑2026).
• Development Drilling Delays: No material organic production additions expected in H1 2026; eight 1P and sixteen 2P locations booked, with additional upside in VS1 horizon.
• Cash Preservation Goal: Board mandates maintaining at least $60 million cash; potential reduction or halt of distributions if cash falls below this threshold.
• Future Guidance Timeline: Formal 2026 guidance to be provided by end‑January 2026; annual reserve report slated for end‑February 2026.
• Operational Constraints: Need for additional water‑handling capacity at Bretana; financing development and expansion internally will be challenging under current price environment.

Notable Quotes

“While Petrotal's financial and operational results remain strong… we continue to experience delays in the resumption of our development drilling program… the updated production forecast, combined with weaker oil prices, is limiting our ability to fund both an adequate development program and return capital to shareholders.” – Manuel Pablo Zuniga‑Pflucker, President & CEO

“Petrotal's board of directors has made the difficult decision to suspend our regular quarterly dividend for the time being… we are evaluating all options to preserve liquidity as we work to resume our development drilling program as quickly as possible.” – Manuel Pablo Zuniga‑Pflucker, President & CEO